Applied Statistics: Career Paths, Industry Applications, and the Difference from Data Science

Applied statistics is essential to data analysis. When working with big data, companies need professionals with skills in applied statistics to help understand data, uncover patterns or inconsistencies, and determine the relationships between phenomena. You’ll find the practice of applied statistics in a range of industries and as a part of many roles that work with data.

Learn more about applied statistics, discover applied statistics jobs and career paths, and understand the difference between applied statistics and data science.

What is applied statistics?

Applied statistics is the process professionals use to analyze data. You will use statistical models, experimental design, and advanced mathematics to find trends, identify relationships, and interpret data for better decision-making. Applied statistics differs from theoretical statistics in that it’s less about making predictions and more about finding, analyzing, and using real-life data to solve problems for businesses and organizations. 

Key skills and concepts in applied statistics

Working with applied statistics means learning some key skills and concepts. As well as learning skills in statistics, you must also learn the skills necessary to apply this knowledge to real-world problems. Skills to build include:

• Mathematics

• Critical reasoning 

• Predictive modeling

• Statistical data mining

• Parametric estimation

• Complex statistical methods

• Programming languages relating to statistical analysis

• Problem-solving

• Communication 

• Leadership

What is the difference between applied statistics and data science?

Applied statistics serves as an important building block for data science. The process of applied statistics is fundamental to the field of data science as a way of analyzing and understanding data, with methods grounded in statistics. Conversely, data science uses computing, statistical modeling, and machine learning to understand and interpret data. A strong foundation in applied statistics is important for a successful data science career. While data science roles offer practical experience, they may not always provide the same in-depth statistical knowledge as a dedicated statistics role. 

These differences are apparent in the education you pursue for each. If you’re looking at a career in applied statistics, you’ll likely choose a degree in statistics or mathematics. Data scientists, meanwhile, usually study computer science or similar, although they may also cover statistics and other STEM subjects. However, you may find bachelor’s degree programs that cover both data science and applied statistics, and you’ll find that some companies overlap duties between these two roles or combine them.

How industries use applied statistics

In a world that is becoming increasingly data-driven, the need for applied statistics and professionals with skills in applied statistics is growing. Businesses in all industries need skilled professionals to help interpret data for decision-making purposes. The demand for statisticians is increasing by 11 percent each year, which is much higher than average [1]. 

Applied statistics professionals support businesses and organizations in several ways. See some examples below:

Finance industry: Understanding stock market trends and assessing potential investment risks

Health care industry: Analyzing the effectiveness of pharmaceutical products and identifying the cause of disease outbreak

Research: Designing experiments to test products and scenarios

Manufacturing: Identifying production errors, implementing quality control, and improving processes

Market research: Collecting and analyzing data relating to consumer habits to aid marketing strategies

Government: Collecting and interpreting data to inform policy and decision-making at all levels 

Applied statistics jobs

Studying applied statistics can lead to a range of opportunities. Whether you are specifically looking for applied statistics jobs or roles that require applied statistics skills and practices, you’ll find options to consider and paths for advancement. 

The roles listed below, along with their average annual base salaries, are available to you if you study applied statistics or a similar field. 

Applied statistician

Average annual base salary: $80,841 [2]

Job outlook (BLS): 11 percent [1]

As an applied statistician, you analyze data using statistical and mathematical processes according to the needs of the company or organization that employs you. You will discover trends and aid the decision-making process. 

Requirements: A bachelor’s degree in applied statistics, statistics, or mathematics; some employers may ask for an advanced degree

Statistician

Average annual base salary: $100,110 [3]

Job outlook (BLS): 11 percent [1]

As a statistician, you might work in a range of industries, for government departments, or in education and research. You’ll solve problems using mathematical and statistical models and processes.

Requirements: A bachelor’s degree or master’s degree in mathematics or similar 

Data scientist

Average annual base salary: $117,899 [4]

Job outlook (BLS): 36 percent [5]

As a data scientist, you work with a business or organization’s data to solve problems using data modeling, computer techniques, statistical analysis, and machine learning to extract and analyze data. 

Requirements: A bachelor’s degree or master’s degree in computer science, mathematics, statistics, business, or engineering

Market analyst

Average annual base salary: $104,547 [6]

Job outlook (BLS): 8 percent [7]

As a market analyst, you analyze current and historical data to determine consumer trends and to see the effectiveness of marketing campaigns, informing new strategies. 

Requirements: A bachelor’s degree in business, communications, or social science, with a focus on statistics and research methods 

Financial analyst

Average annual base salary: $78,781 [8]

Job outlook (BLS): 9 percent [9]

As a financial analyst, you analyze and interpret data to support businesses and organizations in making financial decisions around spending, profit, and loss. 

Requirements: A bachelor’s degree or master’s degree in business or similar; some employers may ask for relevant certifications. 

How to make a start in applied statistics

Applied statistics is a skilled field requiring a good level of education. The exact requirements depend on the path you take, but you’ll need at least a bachelor’s degree to make a start.

Education paths and degree programs

If you’re looking to start your career in applied statistics, various degree programs are available to you. To work as a statistician, you’ll need at least a bachelor’s degree for an entry-level job, with a master’s degree being a typical requirement. You’ll find majors such as statistics or mathematics, as well as more specific programs offering applied statistics. Some courses combine applied statistics with data science, giving you more options once you graduate. 

If you choose to major in statistics or applied statistics, you might find it helpful to take courses in another field, depending on the industry you want to enter. Examples include computer science, life science, and physical science, which might help you find work in the medical or pharmaceutical industries or in a manufacturing field. 

Building applied statistics skills through online courses

A degree is essential to a career in applied statistics. However, to showcase yourself above other candidates, consider bolstering your skills alongside your degree program with some online courses. Online courses are a great way to learn or expand on something very specific that you may not cover in your degree. You might consider a course that focuses on the industry you want to enter. Examples include:

• Business Statistics and Analysis Specialization: Rice University

• Improving Your Statistical Inferences: Eindhoven University of Technology 

• Methods and Statistics in Social Science Specialization: University of Amsterdam

• Google Advanced Data Analytics Professional Certificate: Google

Learn more about applied statistics on Coursera

Applied statistics is a process you can utilize in many data-driven roles, with an excellent job outlook and opportunity for advancement. If you’re looking for an applied statistics job, start with an online course or Professional Certificate to boost your resume. Check out the Meta Data Analytics Professional Certificate as a starting point.