Importance of Mathematics and statistics to Economics

INTRODUCTION

Statistics and mathematics are everything to economics. infact statistics and Mathematics, the economic field wouldn’t even exist. Economist need statistics to represent data, to track and store information, to identify trends, to attribute value and mathematics to calculate those figures.The way to look at the relationship between statistics and economics is that economics is essentially the study of human decisions and trends, and how these have a financial impact. Economists rely on information to form analyses, understanding and opinion on the human activity that they are scrutinizing. This information comes in the form of statistical data. Statistics is the core around which economic deductions are built. It highlights the relationship between figures that would otherwise be meaningless, and is key to economic analysis. An example of this would be an economist trying to analyze the performance of a car manufacturer over the period of a year.

Figures that show the car manufacturer’s sales, profits, costs, and other important economic information would be relayed through the use of statistics. Although people would be right to argue that economics requires more than just statistics (for example, it also relies heavily on understanding and monitoring of sociological factors), it’s undeniable that statistics form an integral part of what economics is all about. Infact the Role of mathematics and Statistics to the field of Economics cannot be over emphasized as we look at the below outlines

IMORTANCE OF STATISTICS

Statistics is the area of mathematics we use to explore and try to explain the uncertain world in which we live. You may be familiar with the use of statistics in opinion polls and market research, but it is also central to the manufacture and testing of many products, and, in particular, showing that modern drugs used in the treatment of disease in humans and animals are effective and safe.

USE FOR PREPARING ACCOUNT

Statistical methods are used for preparation of these accounts. In economics research statistical methods are used for collecting and analysis the data and testing hypothesis. The relationship between supply and demands is studies by statistical methods, the imports and exports, the inflation rate, the per capita income are the problems which require good knowledge of statistics.Statistics are everything to economists. Without statistics, the economic field wouldn’t even exist.