Term "Statistical Thinking" came in discussion with evolution of computational power. Earlier it was common assumption that limitted use of available statistical power is due to constraint of computation. This myth was broken after availability of computational power. It became clear that lack of statistical thinking is main constraint for use of statistics.
Although term Statistical Thinking seems to be related with whatever we do in name of Statistics, but it has specific meaning which got attention in nineties. This newer meaning was discussed by Snee (1990) and Moor (1990). This manner of thinking was further promoted by the Statistics Division of the American Society for Quality (ASQ) in 1994 when they set a goal to “enable broad application of statistical thinking” see Torback (2001). Although origin of concept of Statistical Thinking has been attributed to field of quality control (which is based on interconnected processes), now it is being used in many areas like medical, market research etc. Especially field of Teaching of Statistics gave more place to this concept.
Following are key points of Statistical Thinking
1. All works occur in system of inter connected processes.
2. Variation exist in all processes
3. Process of output varies according to special variation (due to special cause) and random variation (random cause). Understanding and reducing variation is key to success.
These concepts are in context of quality control. For giving it a broader meaning so that concept of Statistical Thinking may be generalized, it is reshaped by use of following concepts (see Wild and Pfannkuch)
1. Statistics is science of variation
2. Statistical tools works between context area and data
3. Ultimate aim of use of statistical tool is enriching the context area.
On this site, concept of Statistical Thinking has been used in more broader sense by keeping its original spirit intact. Fore site, concept of Statistical Thinking is based on following components
1. Study of variation
2. Data
3. Enriching context area
4. Simulation
Following Diagram represent how `Statistical Thinking’ has been used in this site.