Relationship of Statistics with Other Disciplines

Statistics does not stand alone — it is both a method used by many disciplines and a subject that depends on others. The main relationships tested at this level are the following.

Statistics and Mathematics. Statistics grew out of, and constantly uses, mathematics — arithmetic, algebra and the theory of probability supply the formulae for averages, dispersion, correlation and inference. But the two are not the same: mathematics deals with exact quantities and certain results, whereas statistics deals with data affected by many causes and draws conclusions that are true only on the average. Mathematics is a tool for statistics, not a substitute for it.

Statistics and Economics. The relationship is especially close. Economics constantly uses statistics — national income, price indices, demand and supply, and the distribution of income and wealth are all measured statistically — while statistical concepts such as index numbers and time-series analysis were themselves developed largely to solve economic problems. Modern quantitative economics (econometrics) is essentially the application of statistical methods to economic theory.

Statistics and Commerce / Business. As §5 sets out in detail, business uses statistics throughout — marketing, production, finance and management. Statistics turns business guesswork into evidence-based decision-making.

Statistics and the Natural and Social Sciences. Physics, biology, agriculture, medicine, psychology and sociology all use statistics to design experiments, analyse results and test theories. Wherever conclusions must be drawn from observed data under variability, statistics supplies the method. …