Accounting 2

Statistical concepts are used in various aspects on industry. The following highlights the use of statistics in these industries: Accounting/Auditing, Insurance, and Medical (Pharmaceutical).In the accounting/auditing field, it is imperative that the auditor makes an effort to determine that financial statements are stated accurately and free of material error (appear to be stated accurately). To accomplish this task, auditors utilize test methods that include statistical sampling of accounting transactions -- payroll, accounts …

…used to determine the appropriateness of distributing new drugs (ie, determine the likelihood of drug interactions). This is an example of how statistics truly have a very favorable or detrimental impact on daily life. Again, population trending is used to determine whether or not a drug should be released to the general public (based on the results of a small sample size) for consumption. As indicated, statistical concepts play a key role in various industries.