Unit-1 : Introduction To Statistics Q1.What is Statistics? What is the importance of statistics?

Answer: Statistics basically deals with gathering, organizing and analyzing data. In
order to make decisions in almost every facet of human life we need some facts and figures. These numerically expressed facts which can further be analyzed can roughly be characterized as statistics. Statisticians defined it in different ways: According to Horace Secrist, Statistics may be defined as the aggregate of facts affected to a marked extent by multiplicity of causes, numerically expressed, enumerated or estimated according to a reasonable standard of accuracy, collected in a systematic manner, for a predetermined purpose and placed in relation to each other. This definition is both comprehensive and exhaustive. According to Croxton and Cowden, Statistics is the science of collection, presentation, analysis and interpretation of numerical data from logical analysis Statistical methods are applied to specific problems in various fields such as Biology, Medicine, Agriculture, Commerce, Business, Economics, Industry, Insurance, Sociology and Psychology such as in the study of growth of plant, movement of fish population in the ocean, migration patterns of birds etc. Q2.What are the divisions of statistics? Answer: Statistics can be divided in two sections: A. Descriptive statistics and B. Inferential statistics. Descriptive statistics comprises of a) Collecting data b) Organizing data c) Summarizing data d) Presenting data Inferential statistics comprises of a) Making Inference b) Hypothesis Testing c) Determining relationship d) Making Predictions Q3. What are the components of statistics? Give brief description of each of the components. Answer: According to Croxton and Cowden there are four different components of Statistics: a)Collection of Data b) Presentation of Data c) Analysis of Data d) Interpretation of Data Collection of Data:Collection of data is a very crucial step of any statistical survey. Careful planning is needed while collecting data. The different methods used for collecting data such as census method, sampling method and so on. The investigator has to take care while selecting appropriate collection methods.

Presentation of Data: The collected data is usually presented for further analysis in two forms, tabular and diagrammatic or graphic form. The collected data is condensed, summarised and visually represented in a tabular or graphical form. Analysis of data: The data presented has to be carefully analysed to make any inference from it. The inferences can be of various types, for example, as measures of central tendencies, dispersion, correlation, regression. Interpretation of Data: The final step is to draw conclusions from the analysed data. Interpretation requires high degree of skill and experience. We can interpret Q5. What are the characteristics of statistics? Answer: The characteristics of statistics for which it can be used to analyse and interpret data are as follows: Statistics deals with aggregate of facts Statistics gets affected to a huge extent by multiplicity of causes Statistics are numerically expressed Statistics are enumerated or estimated with required degree of accuracy: Statistics are collected in a systematic manner :Statistics are collected for a pre-determined purpose Statistics are placed in relation to each other Q6. What are the functions of statistics? Answer: Statistics is used for different purposes: a) It is used to simplify mass data b) it makes comparisons easier c) it brings out trends and tendencies d)it is used to bring the hidden relations between variables e) decision making power becomes easier Q7. In which of the following situations would you like to use statistics? a) buying a house b) purchasing medicines prescribed by doctor c) checking nutritional status of children of a rural area d) paying fees for your MBA degree e) getting into a course of study Answer: Statistics are numerically expressible facts which can further be analyzed and interpreted. Thus, a) buying a house: Yes, we shall use statistics. b) purchasing medicines prescribed by doctor: No, we shall not use statistics. c) checking nutritional status of children of a rural area : Yes, we shall use statistics d) paying fees for your MBA degree: No, we shall not use statistics e) getting into a course of study : Yes, we shall use statistics.

Q8. What are the limitations of using statistics? Answer: Despite all its characteristics and functions, Statistics also have certain limitations. Statistics does not deal with qualitative data Statistics does not deal with individual fact Statistical inferences (conclusions) are not exact Statistics can be misused and misinterpreted Common men cannot handle Statistics properly Q9. How statistical software can be used to make analysis of data easier? Answer: When the collected data is small, the analysis and interpretation can be done without much difficulty. But when a huge amount of data is huge, the process of analysis and interpretation would be difficult. Therefore, there is a need for tools to do the calculations in an easier way, such as the software namely Minitab, SPSS, Eviews.