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Define “Statistics”. What are the functions of Statistics?
Distinguish between Primary data and Secondary data. ANS:
Statistics plays an important role in almost every facet of human life. In the business context, managers are required to justify decisions based on data. They need statistical models to support these decisions. Statistical skills enable managers to collect, analyze and interpret data and make relevant decisions. Statistical concepts and statistical thinking enable them to: • • • Solve problems in almost any domain Support their decisions Reduce guesswork
Due to advanced communication network, rapid changes in
consumer behavior, varied expectations of variety of consumers and new market openings, modern managers have a difficult task of making quick and appropriate decisions. Therefore, there is a need for them to depend more upon
quantitative techniques like mathematical models, statistics, operations research and econometrics.
Functions of Statistics:
• Statistics is used for various purposes. It is used to simplify mass data and to make comparisons easier. It is also used to bring out trends and tendencies in the data as well as the hidden relations between variables. All this helps to make decision making much easier. • Statistics simplifies mass data The use of statistical concepts helps in simplification of complex data. Using statistical concepts, the managers can make decisions more easily. The statistical methods help in reducing the complexity of the data and consequently in the understanding of any huge mass of data. • Statistics makes comparison easier Without using statistical methods and concepts, collection of data and comparison cannot be done easily. Statistics helps us to compare data collected from different 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 After data is collected; it is easy to analyze the trend and tendencies in the data by using the various concepts of Statistics.
Statistics brings out the hidden relations between variables Statistical analysis helps in drawing inferences on data. Statistical analysis brings out the hidden relations between variables.
Decision making power becomes easier With the proper application of Statistics and statistical software packages on the collected data, managers can take effective decisions, which can increase 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 more reliable. 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 the population is observed. • Collection of primary data can be done by any of the following methods. 1. Direct personal observation 2. Indirect oral interview 3. Information through agencies 4. Information through mailed questionnaires 5. Information through schedule filled by investigators
Any information, that is used for the current investigation but is obtained from some data, which has been collected and used by some other agency or person in a separate investigation, or survey, is known a secondary data. They are available in published or unpublished form.
In published form, secondary data is available in research papers, news papers, magazines, government publication, international publication, and websites. Secondary data is collected for different purposes. Therefore, care should be exercised while making use of it.
The accuracy, reliability, objectives and scope of secondary data should be examined thoroughly before use. Secondary data may be collected either by census or by sampling methods.
The various sources of published data are: • Reports and official publications of international and organizations as well as central and state national
governments • Publications of several local bodies such as municipal
corporations and district boards • • Financial and economic journals Annual reports of various companies
Differences between primary and secondary data
Primary Data Secondary Data 1. Data is original and thus 1. Data is not reliable. more reliable. 2. Gathering data is 2. Gathering data is cheap accurate and
expensive. 3. Data is not easily 3. Data is easily accessible through internet or other resources. 4. Most of the data is 4. homogeneous. 5. Collection of Data is not
homogeneous. data 5. Collection of data
requires more time. 6. Extra
requires less time.
precautionary 6. Data needs extra care. need not be
measures taken. 7. Data
Q.2. Draw a histogram for the following distribution: Age 0-10 No. of 2 10-20 5 20-30 10 30-40 8 40-50 4
15 13 11 9 No. Of 7 people 5 3 1 -1
0 to 10 10 to 20
20 to 30 o 40 40 to 30 50
Q3. Find the (i) Arithmetic mean and (ii) The median value of the following set of values: 40, 32, 24, 36, 42, 18, 10.
(i) Arithmetic Mean:
= (40 + 32 + 24 + 36 + 42 + 18 + 10) / 7 = 202/7 =28.85
= [ (n+1)/2 ]th Value Here, n = no. of values = 7 Median = = 4th value 4th value= 36 [ (7+1)/2 ]th Value = 8/2
Q4. Calculate the standard deviation of the following data:
Marks 78-80 No. Of 3 student
Marks (X) No. Of Students (F) Mid Value of (X)=M M- Assumed Mean= D 78-80 80-82 82-84 84-86 86-88 88-90 3 15 26 23 9 4 80 79 81 83 85 87 89 504 -5 -3 -1 1 3 5
D2 25 9 1 1 9 25
(F*D) 2 75 135 26 23 81 100 440
Assumed mean = 504/6 = 84 Standard deviation= Square root of [sum of all: (F*D) frequencies] = Square root of 440/80 = Square root of 5.4 ANS= 2.34 Q.5. Explain the following terms with respect to Statistics: (i) (ii) Sample, Variable,
/ sum of all
• A sample is a part or subset of the population. By studying the sample, you can predict the characteristics of the entire population from where the sample is taken. The data that describes the characteristics of a sample is known as statistic. • If the population is large, it is hard to collect data. Hence, a part of the population is chosen to study the characteristics of the entire population. The size of the sample can never be as large as the size of the population. Proper care must be taken while choosing the samples.
The totality of all units or individuals in a survey is called population or universe. If the number of objects in a population is finite then it is called finite population otherwise it is known as infinite population. constitutes the entire population.
• In a population, some characteristics remain the same for all units and some others vary from unit to unit. The quantitative characteristic that varies from unit to unit is called a variable. The qualitative characteristic that varies from unit to unit is called an attribute. • A variable that assumes only some specified values in a given range is known as discrete variable. A variable that assumes all the values in the range is known as continuous variable. • For example, the number of children per family and number of petals in a flower are examples of discrete variables. The height and weight of persons are examples of continuous variables.
Q.6. An unbiased coin is tossed six times. What is the probability that the tosses will result in: (i) (ii) ANS: At least four heads, and Exactly two heads.
• • • • • Total outcomes = 6= N Required event = X Favorable outcomes= P Unfavorable outcomes= Q Here outcome will be either Head or Tail, So outcome for single success or failure is = 1/2
(i) At least four Heads:
Event is X Here we’ll find out P(X>=4) using binomial distribution P(X=r) = nCr * (P)r * (Q)n-r P(X>=4)= P(X=4)+ P(X=5)+ P(X=6) Here, P(X=4) = 6C4 * (1/2)4 * (1/2)6-4 = 15 * (1/2)6 = 0.2343 P(X=5) = 6C5 * (1/2)5 * (1/2)6-5 = 6 * (1/2)6 = 0.0937 P(X=6) = 6C6 * (1/2)6 * (1/2)6-6 = 1 * (1/2)6 = 0.0156
ANS= 0.3436 (ii) Exactly two heads:
Event is X Here we’ll find out P(X=2) using binomial distribution P(X=r) = nCr * (P)r * (Q)n-r Here, n=6 , r=2 P=Q= success= Failure= 1/2 P(X=2) = 6C2 * (1/2)2 * (1/2)6-2 = 15 * (1/2)6
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