Putting Statistical Principles to Practical Use

One of the marks of a good research team is its ability to distil the big data numbers they collect into workable statistics, with the data collection process in itself making for quite a challenge to be mastered as well. That’s why we believe that the likes of actuarial scientists and mathematicians who go on to work in professions such as those of a statistician or accountant really are wasting their intellect and the specialist skills they acquired, not from the point of view of the handsome sums of money they earn, but rather from the point of view of taking on more stimulating challenges whose outcomes can make a bigger impact on the lives of more people.

Consequently, the number whizzes we have on our team are always kept on their toes on the back of the challenging tasks they’re assigned as part of our research panel, with no two days in the office playing out exactly the same way. We do indeed like to keep things fresh and exciting, but more importantly, while we’re all having fun which includes the numbers guys, we always strive to yield a final output which has some practical deployment value in the personal and business environment, particularly and especially with regards to finances.

So one of our latest projects had us tasked with the challenge of finding some practical applications of some of the main principles of the field statistics and we’ve identified two of these practical applications. The focus was on the statistical principle of probability, which in itself is relatively straight-forward, but in practical application environments it turns into a very powerful tool which can be used to get ahead financially.

Sales

In sales the identified event for which the probability is measured is that of sales or conversions. The question is how many people are likely to buy something from you out of a certain number of people you prospect? It really is a numbers thing and when put together with high-converting items for sale, success is only one decision to go knocking door-to-door away. If each and every one of your neighbours in your entire block buys a fresh loaf of bread each and every morning, baking fresh bread daily or sourcing freshly baked bread and then proceeding to deliver it door-to-door will invariably yield a 100% conversion rate.

Online gambling

In the online gambling space the identified probability measured is that of a winning event, such as having selected the right set of numbers or having a winning combination of characters aligning in a slots machine game you might be playing. Now, the probability of winning can be increased through something like taking advantage of Reel King Slots free spins offered on online gaming platforms such as Energy Casino, in which case you essentially have a bigger “sample size” to take your chances with and thereby increasing your chances of the right combination forming to have you walk away with some impressive winnings.

Otherwise there are plenty more practical applications for statistical principles taught in the most basic of stats textbooks. You just have to be willing to challenge your mind to uncover them and hopefully the two examples explored will put you well on your way to doing so.

Colin Shaw

Colin Shaw

Colin has been in the finance market for over 20 years and specialises in best business practice to make an organisation profitable. The only man for the job when it comes to numbers and accounts with a keen talent for simplifying finance for the wider market.
Colin Shaw
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Written by Colin Shaw

Colin has been in the finance market for over 20 years and specialises in best business practice to make an organisation profitable. The only man for the job when it comes to numbers and accounts with a keen talent for simplifying finance for the wider market.