INTRODUCTION – MEANING & SCOPE
There are 2 types of data.
(1) Quantitative Data :-
When the information or the observations are recorded in a number, or quantity it is known as quantitative data. For e.g. heights and weights of students income of the people, prices of wheat during this week etc.
(2) Qualitative Data :-
Information which cannot be quantified like beauty, music, intelligence of the students. These items can however be measured in percentage. The information obtained in % is called qualitative data. It may be collected through questionaires and polls.
The systematic treatment of quantitative expression is known as statistics.
By HoroceSecrist: (in plural sense)
“By Statistics, we mean, aggregate of facts affected to marked extent by multiplicity of causes, numerically expressed. Enumerated or estimated according to the reasonable standard of accuracy collected in a systematic manner for a predeterminated purpose and placed in relation to each other.
(i) Statistics is an aggregate of facts:Single observation is not a statistics, it is a group of observation.
(ii) Statistics are effected to a large extent by multiplying of Course :Statics are not isolated facts, they are generally affected by number of phenomenon.
(iii) It is numerically expressed :Qualitative statements are not statistics unless it is ex pressed or supported by numbers.
(iv) Statistics are enumerated or estimated according to the reasonable standard of accuracy :Enumeration means precise or accurate numerical statements. But, when the area of statistical enquiry is large estimation on the basis of whatever data is available is made.
(v) Statistics are Collected in a SystamaticManner :Statistics collected without any order and system are unreliable and inaccurate. They must be collected in a systematic manner.
(vi) Collected for pre-determined purpose :Statistics must be collected for specific purpose, otherwise, they are useless.
(vii) Statistics must be placed in relation to each other :Statistical data are often required for comparison. They must be compared periodwise, regionwise and countrywise.
IN SINGULAR SENSE
“Statistics may be defined as a science of collection, presentation, analysis and inter pretation of numerical data”.
STATISTICAL TOOLS :
- Collection of Data–It means gathering the data for the statistical study. It must be done with the maximum care.
- Organization of Data :Data collected must be organized by classifying, or editing.
- Presentation of Data :Data collected and organized are presented in some systematic manner the organized data can be presented with the help of tables, graphs, diagram etc.
- Analysis of Data :There are large number of methods used for analyzing the data such as averages, dispersion, correlation etc.
- Interpretation of Data :Interpretation of Data implies the drawing of conclusions.On the basis of the data analysed certain decisions can be taken.
- Statistics Simplifies the Complex Data – With the help of statistical methods, a mass of the data can be presented in such a manner that they become easy to understand. For e.g. totals, average, percentages.
- Statistics presents the facts in the definite form. It can be done by expressing the conclusions in numeric form.
- Statistics Provide a Technique of Comparison – Comparison is one of the important functions. It can be done with the help of averages, %, ratios and conclusions can be drawn.
- Statistics Studies Relationships – Correlation analysis is used to discover functional relationship between different phenomena e.g. relationship between supply and demand.
- It helps in Formulating Policies – Many policies such as that of import, export, wages, production etc. are formed on the basis of statistics.
- Statistics helps in Forcosting – Statistics helps to predict the future behaviour such as market situation for the future, is predicted on the basis of available statistics of past and present e.g. impact of today’s investment on the future income.
- Statistics helps to test and formulate theories – To test any theory or law, statistical data are used.
LIMITATIONS OF STATISTICS
- It does not study qualitative aspect of the problem : Qualitative phenomena e.g. honesty, intelligence etc. cannot be studied in statistics unless these attributes are expressed in numbers.
- It does not study individuals – statistics is the study of data and deals with the aggregate of facts. A single value has no importance.
- Statistics laws are true only on an average – The statistical laws are true on an average, because results are effected by large number of causes.
- Statistics can be misused – The results obtained can be manupulatedaccording to one’s own interest and manipulated interest can mislead the conclusions.
- Statistical results lacks mathematical accuracy – Results drawn from statistical study are approximates. Therefore results are just the estimates and not the exact statements.
IMPORTANCE OF STATICS :
Statistics is very important in various fields such as : –
- Statistics and Economics – Economics laws are evolved with the help of statistical tools and this importance is growing in economics analysis. A number of economic problem can easily be understood by the use of statistical tools. It helps in the formulation of economic policies. Various parts of economic are : –
(i) Statistics and the study of consumption :The statistics of consumption are useful and helpful in proving the taxable liability of individuals and their standard of living.
(ii) Statistics and the Study of Production : The statistics of production are very helpful for the adjustment of demand and supply.The comparative study of the productivity of the various elements of production is also done with the help of statistics.
(iii) Statistics and the study of exchange :A producer needs statistics for deciding the cost of production and selling price so that he can study competition and demand of commodity in the market.
(iv) Statistics and the Study of Distribution – Various problems arises due to the unequal distribution of national income and are solved with the help of statistics.
- STATISTICS AND ECONOMIC PLANNING
Economic planning is the best use of the national resources both human and natural. Planning involve drawing a plan, its execution and review. The success of the plan is de pendent upon sufficient and accurate statistical data available at all the stages.
- STATISTICS AND BUSINESS PLANNING
The producer has to estimate the demand for his goods in the immediate and the distant future. This is done by market research by following the statistical steps. Various activities of business like trade, industry (wholesale, retail, export, imports) needs statistics in one or the other way.
Statistical tools of collection, classification,presentation, analysis and interpretation of data are used in all major functions of business management such as production, control, material control, budgetary control.
- STATISTICS AND GOVERNMENT
Government of the country must be well aware with all its problems. Before formulating the policies, the government must consider certain statistics. Like taxes, trade, so as not to have any obstacle in the economic development. The ministry of planning takes into account the statistics of various fields of economy. Thus, the statistical tools are of the great importance to the government for the formulation of economic policies.