Statistics is used widely in economics to calculate Gross Domestic Product and Consumer Price Index. It is also used in research of stocks and analysis of economic models. Economic variables are calculated with the help of statistics. Surverys are extremely necessary to for economical equilibrium. These can be conducted with the help of statistics.
Statistical analysis is a quantitative tool widely used within the economics field and is applied in a variety of ways such as determining the validity of economic theories through the analysis of empirical real-world data, clarifying cause-effect relationships between variables for the purpose of assisting in the formation of effective public policy, predicting the future behavior of relevant economic conditions for the purpose of reducing uncertainty in making business or public policy decisions, or fine-tuning mathematical models by incorporating actual data. Econometrics is the name of the field within economics which applies statistical analysis to economic problems.
Econometric analysis can be used to determine the precise effect of a tax on cigarettes on cigarette consumption (that is to determine the price elasticity of demand for cigarettes) or to understand whether or not a reduction in class size has a positive effect on the performance of primary school students. Various types of regression analysis, from basic linear regression models studying the relationship between one independent variable and one dependent variable, to multiple linear regression models, to non-linear regression and more are used in the economics field. Econometric analysis is commonly used in areas outside the field of economics, such as sociology and political science.
Statistics are used in economics for everything. As answered, they are used to calculate GDP and CPI and Inflation, Spending, Consumption, Saving, Investment and many other Macroeconomic factors. Also used in macroeconomic accounting and speculative sectors such as investment banking. Stock traders have screens of many statistics changing real time and make decisions on whether to buy or sell stock and why. Very interesting Stuff.
