What Is The Importance Of Statistics To Economics, And Some Examples?


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Robin Burden answered
Statistics are everything to economists. Without statistics, the economic field wouldn't even exist.

Economists need statistics to represent data, to track and store information, to identify trends, to attribute value - in short, every aspect of economics relies on statistics.

Why is statistics so important to economics?
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. (This is a pretty loose definition, but bear with me...)

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.

Examples of the importance of statistics to the field of economics
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.

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