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Final Assign

# Final Assign

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stats assignment smu
stats assignment smu

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05/16/2013

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Q.1. Define “Statistics”. What are the functions of Statistics?Distinguish between Primary data and Secondary data.
ANS:
STATISTICS:
Statistics plays an important role in almost every facet of humanlife. In the business context, managers are required to justifydecisions based on data.
They need statistical models to support these decisions. Statisticalskills enable managers to collect, analyze and interpret data andmake relevant decisions. Statistical concepts and statisticalthinking enable them to:
Solve problems in almost any domain
Support their decisions
Reduce guesswork
Due to advanced communication network, rapid changes inconsumer behavior, varied expectations of variety of consumersand new market openings, modern managers have a difficult taskof making quick and appropriate decisions.
Therefore, there is a need for them to depend more uponquantitative techniques like mathematical models, statistics,operations research and econometrics.

Functions of Statistics:
Statistics is used for various purposes
. It is used to simplifymass data and to make comparisons easier. It is also used tobring out trends and tendencies in the data as well as the hiddenrelations between variables. All this helps to make decisionmaking much easier.
Statistics simplifies mass data
The use of statistical conceptshelps in simplification of complex data. Using statistical concepts,the managers can make decisions more easily. The statisticalmethods help in reducing the complexity of the data andconsequently in the understanding of any huge mass of data.
Statistics makes comparison easier
Without using statisticalmethods and concepts, collection of data and comparison cannotbe done easily. Statistics helps us to compare data collected fromdifferent sources. Grand totals, measures of central tendency,measures of dispersion, graphs and diagrams, coefficient of correlation all provide ample scopes for comparison
Statistics brings out trends and tendencies in the data
Afterdata is collected; it is easy to analyze the trend and tendencies inthe data by using the various concepts of Statistics.

Statistics brings out the hidden relations between variables
Statistical analysis helps in drawing inferences on data. Statisticalanalysis brings out the hidden relations between variables.
Decision making power becomes easier
With the properapplication of Statistics and statistical software packages on thecollected data, managers can take effective decisions, which canincrease the profits in a business.
Primary data :
Data collected for the first time keeping in view the objective of the survey is known as primary data. They are likely to be morereliable. However, cost of collection of such data is much higher.
Primary data is collected by the census method. In other words,information with respect to each and every individual of thepopulation is observed.
Collection of primary data
can be done by any of the followingmethods.1. Direct personal observation2. Indirect oral interview3. Information through agencies4. Information through mailed questionnaires5. Information through schedule filled by investigators
Secondary data:

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