References should be used to refer to sources of information used in articles, and identify where the original material can be found. The source can be text, as in the name of a book, or it can be a link, such as another web page or site.
References should be used properly, as described above, and not as a means of injecting a piece of anonymous or superfluous text into an article
Correct use would be to identify the source of a quotation, "Smith stated that 48 islanders died during the drought".
Incorrect use would be to baffle the reader by replacing some text with an anonymous reference number: When Smith was on the island, 48 islanders died. He left shortly afterwards. This sentence tells the reader nothing, and could imply that Smith caused the islanders' deaths, unless the the reader leaves the main text and reads the numbered reference.
How to make a reference:-
To make a reference, simply place the text or link between these two markup tags: [^ and ^].
... when the Picket Hamilton pillbox was designed, the designer forgot the operator had to get in and out. [^Pillbox design^]
... when the Picket Hamilton pillbox was designed, the designer forgot the operator had to get in and out. 
How to display the list of references...
In order to make the list of references display, simply place the following markup at the desired place: [^#^]
In our standard layout, this would be below the end of the article and above the External Links heading, with a heading of References.