Meaning and Scope of Statistics

What is Statistics

• The systematic treatment of quantitative expression is known as Statistics

  • Meaning: When a quantitative expression is treated systematically, it is called statistics.
  • Quantitative expression: Something that can be measured in quantity. Example: 10, 11, 8, 52
  • Example: Finding the average

• The word Statistics refers to:

  • A. Statistical Data: Plural sense
  • B. Statistical Methods: Singular sense

Statistical Data (Plural Sense)

• Statistics are aggregates of facts

  • Example: 1000 rupees pocket money of Aditya
  • Aggregates: A collection of many facts

• Statistics are affected to a marked extent by multiplicity of causes

  • Example: Various reasons for the electricity bill

• Statistics are numerically expressed

  • Always numerical

• Statistics are enumerated or estimated

  • Enumeration = Accurate counting
  • Estimate = Approximation

• Statistics are collected in a systematic manner

• Statistics are collected for a predetermined purpose

• Statistics are placed in relation to each other

Statistical Methods (Singular Sense)

• Use of methods:
  • Collection of data
  • Organization of data
  • Presentation of data
  • Analysis of data
  • Interpretation of data

Function of Statistics

• Statistics simplify data: Make data easier
• Statistics provide techniques of comparison: Make comparison easier
• Statistics help in formulating policies: Assist in policy-making
• Statistics help in forecasting: Aid in predictions
• Statistics present the facts in a definite form: Clearly present facts
• Statistics study relationships: Actually study relationships

Importance of Statistics

• Statistics and Economics: Helps in understanding relationships in economics
• Statistics and Economic Planning: Aids in national economic planning
• Statistics and Business Planning: Facilitates business decision-making
• Statistics and Government: Assists in government decision-making

Limitations of Statistics

• It does not study qualitative aspects: Like honesty
• It does not study individuals
• Statistical results lack mathematical accuracy: Dependent on averages
• Statistics can be misused: Results can be manipulated
• Statistical data should be homogeneous: Data should be uniform
• Expertise is required for proper use of statistics

Homework

• Importance of Statistics in:
  • Economics
  • Economic Planning
  • Business Planning
  • Government