section_path: Areas of mathematics/Statistics and other decision sciences
section_name: Statistics and other decision sciences
paragraph_text: Statistics and other decision sciences
  
  The field of statistics is a mathematical application that is employed for the collection and processing of data samples, using procedures based on mathematical methods especially probability theory. Statisticians generate data with random sampling or randomized experiments.
  
  Statistical theory studies decision problems such as minimizing the risk (expected loss) of a statistical action, such as using a procedure in, for example, parameter estimation, hypothesis testing, and selecting the best. In these traditional areas of mathematical statistics, a statistical-decision problem is formulated by minimizing an objective function, like expected loss or cost, under specific constraints. For example, designing a survey often involves minimizing the cost of estimating a population mean with a given level of confidence. Because of its use of optimization, the mathematical theory of statistics overlaps with other decision sciences, such as operations research, control theory, and mathematical economics.