Now a write up on stats 3
Inferential statistics helps us in decision making process. Can we decide whether the cement blocks have the required strength from the given test results? Yes or No ? Such type statistics is mainly useful in hypothesis testing. You will study the introductory concepts of hypothesis testing in this book. Thus Inferential statistics is used to model patterns in the data, accounting for randomness and drawing inferences about the larger population. The inferences are drawn through statistical modeling. Statistical models give us some sort of relationship between different variables and observations under study. Modeling can be used to draw inferences, which may take the form of answers to yes/no questions (hypothesis testing), estimates of numerical characteristics (estimation), descriptions of association (correlation), or modeling of relationships (regression). Other modeling techniques include ANOVA (Analysis of Variance), time series, and data mining.
Thus Statistical methods that can be used to summarize or describe a collection of data and in addition, patterns in the data may be modeled in a way that accounts for randomness and uncertainty in the observations, and then used to draw inferences about the process or population being studied. Both descriptive and inferential statistics comprise Business Statistics or Applied Statistics.
There is also a discipline called mathematical statistics, which is concerned with the theoretical basis of the subject.