 Hi everyone, it's MJ and in this video, we're gonna be looking at why stats is important and what is the best way to study it But before we do that, we need to ask ourselves a question. What exactly is statistics? Now if you're thinking about, you know, all those weird and wonderful graphs and it's really long definition Then you're wrong. Okay, technically, you're not wrong But you are being inefficient because what stats is it's simply this it's taking data and finding information Now, why is that important? Well, if we look at the enlightenment pyramid, we see that we have data at the bottom We then have some information We then have knowledge and then we have wisdom in order to get from data to information We need to process it through statistics and then you ought to get from information to knowledge We need to give it meaning to get from knowledge to wisdom We need judgment, but statistics is only dealing with data to information But let me give a quick little example. Let's say we get the following data We use our stats magic and we see that this is coming from a uniform distribution between the numbers of one and six We're kind of thinking about it as a dust with equal chance And let's say we have a question which says what is the price one should pay if you're going to get 75 dollars For guessing the correct number. You can use your knowledge. You can figure out that that is 12.5 Wisdom would be asking a question like should you be gambling in the first place? But stats we want that information So let's actually look at it the information that we need is the parameter and the distribution Once we know that we can start acquiring knowledge But in order to get that information we need to study the data But let's look at data, you know what what truths about reality can we extract from data? But we can extract three the first one is that variation is everywhere I mean you just have to go outside and look at the butterflies if you you know here in Africa with me You'll see all the giraffes or all the crypto kiddies. You will see that variation exists Now truth number two is that if you can understand this variation Then you hold the key to success and the third truth is that everything is connected Now Leonardo da Vinci said that Religion says that and even Dirk gently says that if you don't know why there's little kids and turning into a shock It's because you haven't watched this amazing show. Anyway back to statistics So variation is like variance and that's one of the things that we study Connection is like correlation again. It's something else that we study Correlation is it's quite important, especially when it comes to investments because if you understand this you can own financial markets So there we've answered the question. What is stats? It's taking data. It's getting some information But now you're probably wondering, you know, well, what's what's the point of stats? You know, where will we use it? Well, you know, this thing called science stats is the backbone of science in fact stats is the backbone of all the major professions whether you want to become an Actory whether you're going into genetics whether you're an engineer whether you're a sports manager Whether you're in marketing or even if you're going into computer programming in all of these situations You're trying to get information from data and you're going to be using stats Now these truths that we looked at we've actually known them for a long time since since the dawn of time cavemen I think have known these truths Where it's getting confusing is the fact that we have so many different words to try and describe This whole randomness, but I mean even if we look to the holy Bible We'll come across verses like this that say the race is not to the swift Nor the battle to the strong nor bread to the wise nor riches to the intelligent nor favor to those with knowledge But time and chance happen to them all Now it's interesting that the Bible talks about time and Chance because when you combine these two things together you get something called the stochastic process Which is very advanced but very very powerful and you can control the universe if you know stochastic processes Anyway coming back to stats Stats has got a very very rich history. I mean Isaac Newton was involved. There was a lot of intellectual rivalry But there's also like some minor characters I mean the guy who figured out the unbiased formula for the variant was the same guy who mathematically proved Still a parallax which was essential for you know grasping the heliocentric model of our universe. So Stats is quite cool like that, but I mean remember World War two. Well a statistician Used stats along with cryptography to break the enigma German code thing. So that was cool You know food everybody loves their food another statistician Ronald Fisher would use a test in order to devise the best method Of getting the greatest yield. So the next time you're hungry, you know, maybe think of that guy If you've ever been sick You've probably taken some drugs, but in order for those drugs to be, you know, accepted They have to go through a statistical testing. So stats, I mean, maybe maybe the best way to sum stats up is that stats is life And that's why I thought it would be a great idea to create an online school. That is all about Statistics now you're probably thinking especially if this is like the first video that you're watching of mine Bro saying who who are you? You know, who's this guy who's just talking here? So online? I'm known as MJ the student actually I've got my little YouTube channel I've spent the past eight years passing all of the actuarial exams Specializing in finance and banking and doing my fellowship in investments. I've got a major in mathematical statistics from university I've written on artificial intelligence and journals of science and I'm on level 212 of Candy Crush. Yeah. Yeah, so I'm pretty cool But what I'm really interested in is Understanding learning, you know, how do we study? How do we acquire? Information all of these things and and I gave a Ted talk about it back when my hair was quite quite long But what it was doing is I was looking at, you know, a lot of the cognitive psychology and Trying to blend this in with stats and trying to say, you know What actually is the best way to study this subject and the good news is is That we have actually already started because step one in learning a new subject is to ask yourself Why is this important? Because then I can take that information We can turn it into knowledge by giving it meaning and as we see stats has helped end wars It feeds the population. It creates drugs for us to cure diseases. It can get us our dream job So stats is important. The next question, you know, what does it do? Well, we've also gone in depth about that it stats takes data and gives us information The next question is to ask what is it part of and this comes back to that truth number three You know, everything is connected. So where does stats come into things and there we showed it I mean every major field of study that uses empirical evidence needs to rely on stats Whether it's science finance medicine all of this stuff does depend on stats So now we can ask ourselves, you know, what is stats made out of and this is where I think a lot of students Get a little bit confused with that or they get a little bit disheartened Because there is a whole bunch of these abstract mathematical things that we need to know in order to handle stats But remember everything is connected. So let's see how these chapters are actually connected to one another and That actually gives you a much better picture of what stats is. So remember, we've got our data We've got our information and we want to turn that data into information So we're going to do that by looking at stats and stats is a combination of mathematical processes as well as Logical inferences and we use this information now to answer questions or to optimize processes But the whole thing was to look at data, you know Where does data come from and all data is coming from random variables and random variables have two things They have parameters and distributions and the stats that we're doing is trying to acquire information about these parameters and distribution However, sometimes these parameters are unknown and they behave a little bit like a random variable in which case they also have their own Parameters and distribution to add more confusion Sometimes we can have multiple random variables Contributing to the data and we need to know how these things are connected or otherwise know what is the correlation between them So I've kind of made this big picture of stats trying to show where each of the chapters fall in on the big scheme of things And on the YouTube channel what we've done is we've made an introductory video for each of these chapters Explaining how they contribute to the big picture so you can see this is the random variable one And I just explain how it fits in and and then of course the actual work Will then all be on the online school which you guys can enroll in If you want to see like a sample of one of the videos I've made I have put the regression one on YouTube You can see it got some nice comments and got some got some likes and that's great But I would almost recommend watching this video in the beginning So I know regression is one of the the later chapters But there is a little bit of a trick to studying backwards You know just how like they took tomato sauce and they flipped this on its head And it just worked so much better by studying something backwards It can help you know what the end goal is and it can encourage Questions because you're like what is this? How did I do this? Where does this come from and that is step six to studying? You need to question everything so on the course of course We have got a whole bunch of exam questions, and I've got some videos where I answer them And I explain how we got those answers now We are taking the exam questions from the profession websites of the actuaries an idea being that if you can do stats in an Actorial level you're doing it at the highest level, so you're gonna understand the subject way better than anybody else And then of course step seven is to keep practicing as you know as we all say practice makes perfect so Check out the online school, and I mean congratulations for making it this far into the video So you can actually have a coupon code, which will give you 23% off It's called you 23 gets you 23% off the course Otherwise you're more than welcome to follow me on the other social media stuff. I mean I've just made this Stats by MJ Instagram page We have got some pretty pictures of some of the study notes that you'll see a lot more of in the course So the main thing is to subscribe or enroll in the course use that coupon code And yeah, if this is a success if this is a success then in the same course We're gonna start adding additional content on that stochastic processes on mark of change survival models game theory loss Distribution we're gonna keep adding that at no additional cost. So if this works Expect amazing things, but anyway, that is stats by MJ and John go now and enroll. Thanks for watching guys. Cheers