STATISTICS INRODUCTION
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WRITE THESE NOTES IN YOUR REGISTER.
EXPLAINATION TO BE DONE IN CLASS.
Definition of statistics in Plural Sense – It means aggregate of facts affected to a
marked
extent of multiplicity of causes numerically expressed, enumerated or estimated according
to reasonable standard of accuracy, collected in a systematic manner for predetermined
purpose and placed in relation to each other.
Characteristics of Statistics in Plural Sense:
1. Statistics are aggregates of facts: Aggregate of facts is known as statistics. A single and
unconnected figure are not statistics, it has to be a group of observations, for simple reason
that such figures cannot be compared and we cannot reach at any conclusion.
2. Statistics are numerically expressed: all statistics are numerically expressed. Qualitative
expressions like good, bad young, old etc. , do not constitute statistics, unless they are
supported by numbers. Sale of a company has gone up id not statistics but if we say sale of
firm has gone up from 4 lac to 6 lac, it will be called statistics.
3. Statistics are affected by multiplicity of causes: statistics are not isolated facts they are
dependent of or influenced by number of phenomena, like price of commodities are
increased due to ,demand, supply, exports, imports, climate, fashion, taste and preference
etc. It is very difficult to study separately the effect of each factor.
4. Statistics are enumerated or estimated according to reasonable standard of accuracy:
enumeration means a precise and accurate numerical statement. But where the area of
study is large accurate enumeration may not be possible.in such cases experts make
estimation on the basis of whatever data is available. Statistics data must be reasonable
accurate because statistical data are to serve as basis for statistical study.
5. Statistics is collected in systematic manner; Statistics should be collected systematically in a
planned way. Statistics collected in haphazard manned is unreliable and inaccurate. Statistics
collected in an unsystematic way will lead to misleading conclusions.
6. Statistics are collected for predetermined purpose: before collecting the data the purpose of
their collection should be decided in advance. if statistics is collected without any specific
purpose whey would be more or less useless.
7. Statistics should be placed in relation to each other: statistics data are often collected for
the purpose of comparisons. For this data should be homogenous. If data is not of similar
kind it cannot be compared.
STATISTICS IN SINGULAR SENSE;
Statistics in singular sense may be defined as a science of collection, organization,
presentation, analysis and interpretation of numerical data.
1. Collection of data: this is the first step instatistical statement and is foundation of
statistical analysis. so data should be collected with maximum careby investigator.
2. Organisation of data: after collection data need to be organised by editing and
classifying. This can be done by classification according to characteristics of data.
3. Presentation of data: after organisation data are presented in some suitable manner to
make statistical analysis easier. The organised data can presented in form of tables,
graphs and diagrams.
4. Analysis of data: the next stage is he analysis of presented data. There are lare numbr of
methods used for analysing the data such as averages, dispersion, correlation etc.
5. Interpretation of data: it is last step of statistical study. Interpretation of data implies the
drawing of conclusion on the basis of ata analysed in earlier stage. It involves skill
experience. It provides the conclusions drawn from the analysed data. On the basis of
this conclusion certain decisions can be taken.
STATISTICAL TOOLS:
STAGE
I
STATISTICAL STUDY
COLLECTION OF DATA
II
ORGANISATION OF DATA
III
PRESENTATION OF DATA
IV
V
ANALYSIS OF DATA
INTERPRETATION OF DATA
TOOLS
CENSUS OR SAMPLE
METHOD
(PRIMARY OF SECONDARY
SOURCES OF DATA)
ON THE BASIS OF
GEOGRAPHICAL AREA
,CHRONOLOGICAL ORDER
OR FREQUENCY
DISTRIBUTION
PIE CHART, GRAPHS,
DIGRAMS TABLES ETC.
MEAN MODE MEDIAN
USING TOOLS IN
DISPERSION LIKE
DEVIATIONS
IMPORTANCE OF STATISTICS:
1. To Government: statistics is regarded as an indispensible tool to run an efficient
administration. The govt. must know the statistics of price, national income, per capita
income employment, poverty levels exports and imports of a country. These statistics
are used to formulate suitable policies for economic and social development. it also help
to rate India’s position in world.
2. To business: statistical methods help the businessmen in estimating future changes in
sales revenue or demand on the basis of past data. Sampling methods are used to
conduct business and market surveys. Before starting new business or to expand the
existing one statistical information is highly useful. Statistical methods are also adopted
for quality control. Looking at past data businessmen can also predict their profitability
and decisions.
3. to researchers for formulating laws: statistics proves to very useful in the hands of
researchers. They make great use of statistics and statistical methods. They are
constantly engaged in the task of research trying to maintain functional relationship
between various variables such as price and demand, income and expenditure, poverty
and sickness, crop yields and fertilizers, etc. in fact there is hardly any research work that
can be completed without statistics. Law of demand have been developed due to
statistical analysis.
4. To know the performance of an economy: statistics is very useful and essential for
understanding the performance of any economy. It provides the basis for comparing the
performance of an economy over th years. With the help of statistics it is possible to
understand the contribution of various sectors in the economy namely primary,
secondary and tertiary sectors. Economists depend on statistics to measure gross
domestic product, consumption, savings, investment expenditure changes in value of
money. Statistics is also helpful in knowing standard of living and taxable capacity of the
people.
5. Economic planning: statistics is the most important tool in economic planning means
utilization of country’s resources into development activities in accordance with
national priorities. For ensuring better utilisation of resources, statistics relating to
resources and their distribution among different uses is essential. Statistics also helps in
evaluating the progress if such planning.
6. Economic policies: policy makers use statistics to make economic policies. Monetary
policy and fiscal policy are made on the basis of statistics available. Govt. expenditure
and central bank’s credit control weapons are concepts which are statistical in nature.
How much should be taxation , interest rate, increase in salaries, development plans of
govt. are decided on the basis of statistics only.