The parallel axis theorem (PAT) allows for the calculation of an object's moment of inertia (MI) about any axis parallel to one through its center of mass, using the known MI at the center of mass. When the axis is shifted away from the center of mass, the moment of inertia increases, which is illustrated by the example of rotating a disc around a point on its circumference. The discussion also draws parallels between the PAT and concepts in statistics, such as standard deviation, highlighting that the second moment behaves similarly in both contexts. Additionally, it notes that the power of an AC waveform increases with a DC offset, further emphasizing the relationship between these mathematical principles. Understanding the PAT is crucial for applications in physics and engineering involving rotational dynamics.