Introduction

The subject matter of statistics has to do a great deal with the ‘science’ of statecraft. The very word
“statistics” is said to have been derived from, say the Latin “status”, Italian “statista” and so on, but
obviously, only an organized and strong body of the state could venture into collection of statistics
which in the past was mainly on population, its composition and wealth or poverty, etc.

Statistics in modern times is not a mere tool of state administration; it has become a fact of day-to-day
life. ‘Statistics’ is being used both as a singular noun and a plural noun.initaily,a distinction was drawn
while as a singular noun, it represented a method of study based on analysis and interpretation of
facts.but,modern literature on the subject does away with any such distinction. Now ‘statistics’ can
signify ‘data ‘even when used as singular noun in which case it would be treated as a group noun. The
actual meaning of ‘Statistics’ in each case shall be constructed from the context in which it has been
used.thus, the word”Statistics” may mean any one of the following:

• Numerical statement of facts or simply data,

• Scientific methods to help analysis and interpretation of data,
• A measure based on sample observations.

But, only the first two of these, being more relevant to general purpose, are given greater prominence.
The illustrations on the three possible uses are as follows:

• Production statistics is compiled for judging the process of a business firm (i.e. here ‘statistics’
has been used for ‘data’).
• Statistics helps in simplification, analysis and presentation of data(here ‘statistics’ has been
used to represent statistical method),
• Statistics derived from a small representation group taken from the whole lot used for
drawing inference about characteristics of the whole (here ‘statistics’ represent measure
based on sample observations.)
Definition:

The purpose of definition is to lay down precisely the meaning, the scope and the limitation of a subject.
This may not be served if there are many definition emphasizing one or more of its element, so statistics
have been grouped below under two main head:

• Statistics as data.
• Statistics as methods.

Statistics as data:

Some of the definitions of statistics as a data are described as quantitative facts which according to
Webster, he defines that:

“Classified facts respecting the condition of the people in a state especially those facts which can
be stated in numbers or in any way other tabular or classified arrangement.”

The above definition emphasizes mainly on the following fact:

• Facts, especially the numerical ones. The non-numerical facts obviously cannot be
processed statistically.
• Facts which concern only the condition of the people in the state like emphasizing on
restricting the application of statistics to human science.
• Lastly statistics as data are classified and tabulated. It is necessary to bear in mind that no
valid comparisons are possible without proper arrangement of data and the use of the
statistical methods on such data.

Characteristics of Statistics as Data:

Numerical values are commonly described as statistics, if it possesses any of the following:

They must relate to the aggregate of facts:

Its means that any single fact, even thought its is numerically stated, cannot be
called statistics.

They are numerically expressed:
This means that any facts, to be called as statistics, must be numerically or
quantitatively expressed, but quantitative characteristics’ such as intelligence, beauty, etc.,
cannot be included in statistics unless they are assign with certain scores as quantitative
measure of assessment.

They should be enumerated or estimated:
Any data can be obtained by counting or doing measurement or can be obtain by
estimating statistically when enumeration is not possible. It can also be estimate by
statistical method. For example, the quality of any products can be estimated by
experimental test on small samples.

They should be collected with reasonable standard of accuracy:
Data is collected only with a reasonable standard of accuracy, where accuracy in
statistics is observed mainly in accountancy.

They should be collected in a systematic manner and be relevant to the purpose:
Whenever data is collected, one should be careful and do in systematic manner,
because haphazard collection of figures may lead to error conclusion. Therefore whenever
the data are being collected, scope and purpose of inquiry should be clearly stated before
conducting the actual inquiry.

They should be placed in relation to each other:
The main purpose of collection of data, facts and figures is to help in comparative
study that is statistics should be capable of comparison.

Definition-(II): Statistics as a Method:

In general, Statistics as Method is defined as a science which provides tools for
analysis and interpretation of data. These methods are applied mainly on the data collected
for the purpose of decision making in various fields of scientific. Apart from these, it also
involve in collection, classification and tabulation of numerical facts as a basis for
explanation, description and comparisons, etc.
The above definition of Statistics as a Method mainly focuses more on descriptive character
of statistics rather than analytical aspect of its tool.
There are many more definitions about statistics as method, but according to Croxton and
Cowden, they have defined in a simple comprehensive way as follows:
“Statistics may be defined as the collection, presentation, analysis and interpretation of
numerical data”.
The above definitions bring into light of various phases in statistical investigation. From the
logical point of views, the above definition clearly state that statistics as a method is the most
scientific and realistic one, because statistics as data is like a raw material to be processed
through the use of the appropriate statistical methods. It is only when this is subjected to
such processing that the data can serve the purpose of analysis and interpretation of
quantitative facts. The choice of methods will depend upon the nature of data as well as the
purpose for which it is collected. Therefore, the data and the methods of study are
complementary, and quality of analysis will depend on a suitable collection of data for a
given purpose.
The distinctions between the two are shown below:

Statistics as data Statistics as Method

1)-it is quantitative
2)-it is descriptive in nature
3)-it is often in the raw state
4)-it provide material for the processing
It is operational technique
It is basically a tool of analysis
It helps in processing the raw data
The processing is done by the scientific
method of analysis and interpretation
Types of statistics:

Statistics method is broadly divided into four categories:

• Descriptive statistics.
• Analytical statistics.
• Inductive statistics.
• Inferential and applied statistics.

Descriptive statistics:

Descriptive statistics include different types of methods like collection and tabulation, averages,
trends, index numbers, dispersion and skewness which help in summarizing and describing the main
feature of the data. The descriptive measures are basic to any statistical analysis. They sometime
constitute the preliminary steps to final analysis and interpretation. For example, mean and standard
deviation are important for deriving coefficient of correlation.

Analytical statistics:

This include methods like association of attributes, correlation, regression, etc., which help in
establishing functional relation between variables. Analysis is often attempted through comparisons
between two or more set of data, thus, the methods which help in making valid comparison are
included in analytical statistics.

Inductive statistics:

It’s a statistical method that help to generalization the random observation, also inductive statistics
help in estimating partial data.

Inferential statistics:

Inferential statistics help in drawing inferences on the characteristics of the population, on the basis
of sample are covered under ‘Inferential statistics’ where hypothesis of a sample are tested on the basis
of population parameters.

Applied statistics:

The applied statistics consists of application of statistical methods and technique to the problem.
Methods included in applied statistics are quality control, sample, surveys, quantitative analysis for the
business decision, etc.
Functions of statistics:

Statistics are important for the decision making and base on these, principles are formulated for
analyzed quantitative facts. To be more precise, some of the important uses of statistics are listed
below:

1. To present facts in a proper form:

One of the most important uses of statistics is to present general statements in a
precise and a definite form. The conclusions stated numerically are more precise and hence
more convincing than those stated quantitatively.
For example, the statement that the average yield of 160 kg of sharshogpa potatoes per
hectare in Pangtang is more convincing than stating simply that the average sharshogpa
potatoes yield in khangma is much lower than in pangthang.
2. To simply complex data and make them easily understandable.
We know that raw data are often complex. So in order to simplify those complex
data, a statistical method reduces it to numerical totals or averages which can be handle
easily. We can draw the pictures and diagrams to illustrate general tendencies to make it
more understandable.
3. To help classification of data:
Classification of data usually involves arrangement of the numerical data according
to various characteristics processed by the data. Classification facilitates comparisons and
interpretation.
For example, the bio data contained about the individual students in computer science
about their age,sex,date of birth, mark scored,etc. cannot give a clear ideas about details of
each students, but the data will be easy to understand and more intelligible if it is classified
according to various characteristics.
4. To formulate policies in different fields:
Statistics help in formulating polices in social, economics and business fields. Various
government policies in the field of planning, taxation, trade, education, etc. are formulated
on the basis of analysis of statistical data.
For example, important statistics compromising of birth and mortality rate in kanglung
gewog help the health staffs in assessing growth in population every year.
This information is necessary for designing any scheme of family planning in kanglung
gewog.
Importance of statistics:

Statistics is widely used in modern times. Initially in olden days, it was employed by the state to collect
information on public affairs, but now a days, its is used in all scientific experiment where observations
were to be recorded and compared so that valid inferences could be drawn on important matters. The
significance of any hypothesis can also be judge through statistical methods. Statistics has been
extensively used in biology, meteorology and research number of important investigations in the field of
economics and commerce are largely statistical.

In short, statistics finds use whenever a large quantitative data needs simplification and analysis is
involved, or where estimates have to be made in regard to certain unknown and uncertain events on the
basis of past experience or on available information. Statistics finds use whenever a mass of quantitative
data needing simplification and analysis is involved, or where estimates have to be made in regard to
certain unknown and uncertain events on the basis of past experience or on available information.
Following are field of requirement of statistics

1. In State Affairs

With the growth of State and concept of Welfare State has taken roots, it has to undertake
greater responsibilities in social matters. To fulfill these obligations it has to collect information
on the economic condition of the people, and resource available in the State.

2. In Economics

An attempt is made to obtain optimum result subject to a number of constraints, say, of

production capacity, capital, technology precision etc which determine statistics. It is examined
under following categories:

I. Compilation of National Income Accounts: These are aggregate accounts of the nation
containing systematically arranged information on certain macro variable like
production, income, expenditure, saving with rest of the world.

II. Economic Planning: It requires a good deal of information on various components of

economy. Data has to be collected on overall resources of the community including
physical, financial and human resources.
3. In Business

A modern business firm, even if it is operating on a moderate scale, has to plan its affairs
systematically. Some important aspects of business planning are given below:

I. Location and Size Decision:

A decision on location from amongst various alternative places will depend on the
collection and analysis of information on the availability and cost of land, labour, raw
materials, etc. It is also be necessary to find out the relative cost of transportation on
the procurement of raw material and the distribution of the finished product.

II. Production Planning:

It deals with the preparation of schedule for production of various types of goods to
avoid both over-stocking of goods and losses due to non-fulfillment of order in time.

4. Physical Science

Physical science use the statistics in increasing order and in includes in filed of astronomy,
chemistry, engineering, geology, meteorology and certain branches of physics

5. Natural Science

Statistical techniques have proved to be extremely useful in the study of all natural science like
astronomy, biology, medicine, meteorology, zoology, botany, etc. Example, in diagnosing the
correct disease the doctor has to rely heavily on actual data like temperature of the body, pulse
rate, blood pressure.

6. Research

Statistics in indispensable in research work. Most of the advancement in knowledge has taken
place because of experiment conducted with the help of statistical methods. Example,
experiment about crop yields and different fertilizers are frequently designed and analysed with
help of statistical methods.
 Types of data collection:

A structure of statistical investigation is based on a symmetric collection of data.Data is generally

classified in two groups:

 Internal data.
 External data.

Internal data:

Internal data comes from the internal records related to the operations of a business firm, records of
production, purchase and the accounting system. This is generally associated with the organizational
and functional activities of the firm. The internal data can be either insufficient or inappropriate for the
problem under investigation, thus we need external data to make decision.

External data:

The external data are collected and published by agencies external to the enterprise. The external data
can be collected either from the primary or the secondary source.

Statistical data are generally of two kinds:

 Primary data.
 Secondary data.

Primary data:

Primary data are those statistical data which are collected for the first time and are original in nature.
Primary data are collected originally by the authorities who are required to collect them. The source
from which primary data are collected is called ‘primary source’. The method of collection of primary
data is also known as the ‘Primary Method of the collection of the data’. Primary data are collected for
the first time by the authorities who require the data for their own use and treatment. Data collected by
the field worker, investigator and enumerator are all primary data.

For example, the number of students enrolled in various courses and students graduating every year in
Sherubtse College published by the Royal university of Bhutan (RUB) are one of the examples of the
primary source of data.

Secondary data:

Secondary data are those statistical data which are collected and published by one organization and
subsequently treated and utilized by the other organizations. Secondary data are originally collected and
published by the organizations other than the authorities who require them subsequently for their use.
So secondary data of one organization become the primary data of other organizations who first
collected and publish them.

The source from which secondary data are collected is ‘Secondary source’. The method of collection of
secondary data is also known as ‘Secondary method of the collection of the data ’.

For example, the publications of different Trade association and Bhutan Chamber of Commerce (BCCI)
are the source of secondary data.

Difference between Primary and Secondary Data:

The difference between the primary and the secondary data is that data which is primary in the hands of
one may become secondary in the hands of others.however,the main distinction between two are listed
below on the basis of the criteria in table.

Sl/no Basis Primary Data Secondary Data

1 Originality It is original, because the It is not orginal.the investigator

investigator himself makes use of the data collected by
collects the data other agencies
2 Collection It involves large It is relatively a less costly method
expenses expenses in the term of
time, energy and money
3 Suitability If the data has been It may or may not suit the objective
collected in a systematic of the survey
manner, its suitability
will be positive
4 Precautions No extra precautions It should be used with care
need to be taken in
making of this data

Methods of collecting Primary Data:

When the data is neither internally available nor there exist a suitable secondary source, the
expenditure on original collection becomes justified. There are many various methods to collect primary
data, but some of the most important collection of primary data is listed as below:

Direct personal investigation:

This method can be implemented by doing interview or observations with each informant
and gathers first hand information.

Indirect oral investigation:
This method is used in case where it is not possible to approach people directly or where
data to be collected is of complex nature or where there is reluctance on the part of the
informants.
Types of Sampling and Data Collection:

It is becoming very important for the need of reliable and adequate data for taking policy
decision in different fields of human activity. There are two ways of collecting required
information:

1. Complete enumeration survey:

In complete enumeration survey method the data are collected for each and every unit like
person, household, field, shop, factory, etc belonging to the population or society which is the
complete set of items which are of interest in any particular situation.

The advantage of this method is that no unit is left out and hence greater accuracy are realized
and ensured. However, the effort, money and time required for carrying out complete
enumeration will be extremely large.

2. Sampling techniques

Sampling technique is alternative to complete enumeration survey which is more effective

technique for collecting information and data. In the sampling technique instead of every unit
of the universe only part of the universe is studied and the conclusions are drawn on that basis
for the entire universe. For example, a housewife examines only two or three grains of rice to
know whether the pot of rice cooking is ready or not. A doctor examines a few drops of blood
and draws conclusion about the blood constitute of the whole body.

A sample is not studied for its own sake. The basis objective is to draw the proper judgment
about the population. Sampling is only tool which helps to know the characteristics of
population or universe by examining only small part of it.

Principle of Sampling

There are two principles on which the theory of sampling is based:

• Principle of ‘Statistical Regularity’.

• Principle of Inertia of Large Numbers

 1) Principle of ‘Statistical Regularity’:

This principle is derived from the mathematical theory of probability. In the word of King, “The
law of statistical regularity lays down that a moderately large number of items chosen at
random from a large group are almost sure on the average to possess the characteristics of the
large group.” (Gupta, 1999, p43)

This principle points out that is a sample is taken at random from a population, it is likely to
possess almost the same characteristics as that of population. Through random selection we
mean a selection where each and every item of the population has an equal chance of being
selected in the sample. It is possible for one to predict fairly accurately the characteristics of the
population by studying only a part of it.

This principle is great practical significance because, it can reduce the considerable amount of
work and resource before the final conclusion is drawn regarding the population and universe.

2) Principle of Inertia of Large Numbers:

This principle is the outcome of the principle of statistical regularity. It states that, other thing
being equal, larger the size of sample, more the accurate the results are likely to be. This is
because large numbers are more stable as compared to smaller one. The difference in
aggregate result is likely to be less when numbers in sample is large and therefore the variation
is insignificant.

Sampling Method:

The Various method of sampling can be grouped under the two broad heads:

Probability sampling (random sampling).

Simple Random Sampling.

1) Probability sampling (random sampling):

Probability sampling methods are the methods in which every item in the universe has a known chance
of the item being chosen for the sample. In this case the selection of any item can be done randomly as
it has fewer chances for the variations of sample gathered. Personal bias or the investigator does not
influence the selection.
 2) Simple Random Sampling:

Simple random sampling refers to that sampling technique in which each and every unit of the
population has an equal opportunity of being selected in the sample.

Lottery Method:

This is a popular method of taking a random sample. In this method, all items of the universe are
numbered on separate slip of identical size and shape of paper. Then it is mixed up in container and
blind selection is made. This selection of items thus depends entirely on chance. While adopting
lottery method, size of slips should be identical size. This is a simple random sampling method.

Systematic Sampling:

A systematic sample is formed by selecting one unit at random and then selecting additional unit at
evenly spaced intervals until the sample has been formed. This method is popularly used in those
cases where a complete list of the population from which sample is to be drawn is available. The list
may be prepared in alphabetical, geographical, numerical or some other order. The items are serially
numbered. The first item is selected at random generally by following the lottery method.

Non-probability Sampling Method:

Non-probability sampling methods are the one which do not provide every item in the universe with the
known chance of being included in the sample. This process include little subjective for sample
collection.

Judgment Sampling:

In this method the investigator exercises his judgment in the choice and includes those items in the
sample which he thinks are most relevant of the universe with regard to the characteristics under
investigation. Example, if sample of five taxi driver is be selected from town for analyzing the
passenger travelled for a particular season, the investigator would select five drivers who in his
opinion are representative of the town.

This method is used in solving many types of economics and business problems. Some important
element may miss when small number of sampling are randomly selected. It is useful in everyday
business problems and making public policy decisions etc.

Quota Sampling

In quota sampling, quotas are set up according to some specified characteristics such as so many in
each of several income groups, so many in each age, so many with certain political or religious
affiliations etc. Each interviewer is then told to interview a certain number of persons which
constitute his quota. With the quota, the selection of sample items depends on personal judgment.

For example in radio listening survey, the interviewers may be told to interview 400 people living in
certain area and that out of every 100 person interviewed 60 are to be housewife, 40 farmers and
15 children under the age of 20. Within these quotas the interviewer is free to select the people to
be interviewed. The cost for interview may be small but there can be numerous chances of bias for
validation of the result. They may miss the person or person refuse to respond and interviewer
simply selects someone else. Because of bias and prejudice quota sampling are hardly used in
practical work.

Quota sampling is often used in public studies. The results are satisfactory and presentable if the
interviewer are well trained and follow instruction strictly.

Convenience Sampling

A convenience sample is obtained by selecting ‘convenient’ population units. It is also called as

chunk which means that fraction of the population is investigated which is selected neither by
probability nor by judgment but through convenience. If lecture is to submit report on the quality of
services provided by Social Service Unit to college, he can take few members to his resident and
interview there, he is following the convenience method.

Hence the result obtained by following convenience sampling method can be hardly representative
of the population. They are generally biased and unsatisfactory. But it is used in making pilot
studies.
 Advantage of sampling technique:

The sampling technique has following advantage over complete enumeration survey:

i) Less Time consuming:

Considerable time and labor are saved when a sample survey is carried out as it is the
study of part of the population.

ii) Less cost:

A total expense made in collecting data in a sample survey is generally less than that of
complete survey due the fact that, we study only a part of population.

Diagrammatic and Graphic Presentation:

The most convenient way to present the data and statistical results are through diagrams and graphs.
There are many ways in which statistical data may be displayed pictorially such as different type of
diagrams, graphs and maps. They give bird’s-eye of the entire data and information given is easily
understood. It helps in proper understanding of the data as it gives an interesting form to it.

The impressions created by diagrams last much longer than those created by the figures presented in a
tabular form. There are wide varieties of diagram used for data representation and few of diagram with
it data associated.

The two different types of diagram are:

One-dimensional Diagram

Two-dimensional diagram.

One-dimensional Diagram:

They are called one dimensional because it is the length which contributes for actual data
representation and not the width of the diagram. They are readily understood, simplest and easiest to
make out the result represented. When large items are to be compared they are only the form that can
be used effectively. Example of one-dimensional diagram is bar diagram.
The different Types of Bar Diagrams are listed as shown below with the diagrams:
diagrams

i) Simple bar diagrams:

diagrams

A simple bar diagram are used to represent

represent one variable. For example, the figures of production,
sale and population etc. It becomes easy for reader to study relationship as it varies only in length
with its width constant.

Year Potato in tons

2000 30

2001 20
2002 78.2
2003 15
2004 54

Potato production from 2001-2004

2001 2004 in khangma
78.2
80
54
60
40 30
20 15 Potato (…
20
0
20002001200220032004

Figure 1: The potato production from the khagma in a year from 2001-2004
2001

ii) Multiple Bars:

In multiple bar diagram two or more sets of data interrelated are presented. The only difference
from simple bar is that since more than one data are represented, different shades, colors, dots are
used to distinguish between the bars. It is used whenever a comparison between two or mor more
related variables is to be made.

Year Gelephu S/jongkhar Phuentsholing Samtse

2008 65 62.24 58.75 76.88
2009 75.2 80.13 86.43 52.33
2010 50 60 96.58 67
 The regional rainfall during tthe year 2008 to 2010 in southern Dzongkhag
96.58
100 86.43
90 76.88 80.13
75.2
80 67
6562.24
70 58.75 60 gelephu
60 52.33 50
50
40 s/jongk
har
30
20 phuents
10 holing
0 samtse
2008 2009 2010

Figure 2: The regional rainfall during the year 2008 to 2010 in Southern Dzongkhag .

iii) Percentage Bars:

Percentage bars are particularly used in statistical work which requires the portrayal of relative
changes in data. When such diagrams are prepared, the lengths are kept equal to 100 and segments
are cut in these bars to represent the percentage of the aggregate.

iv) Deviation Bars:

Deviation bars are use for representing net quantities-

quantities excess or deficit, which include net profit, net
loss, net exports or import, etc. Deviation bar will have both positive and negative values. The
positive lines are shown above the base line and negative values below it.

Net
Year Sales Profit
2002-
2003 20% 65%
2004-
2005 12% -35%
2006-
2008 9% -10%
2009-
2010 26% 72%
 Sale and net profit for N.P General shop for the year 2002 to 2009

80% 65%
60% 43%
40% 26%
20%
20% 12% 9% Sales

0% Net Profit

-20% -10%
-40%
-35%
2002
2002-03 2004-05 2006-07 2008-09

Figure 3: sales and net profits of the N.P General shop,Kanglung

Two-dimensional Diagrams::

The different from one-dimension

dimension diagram is that in two dimensional diagrams both the length and
wide of the bar is considered. Thus the area of bars represents the given data. The two-dimension
two
diagrams are also known as area diagram or surface diagram.

Some of the two dimensional diagrams are

are:

i) Rectangle:

The area of rectangle is equal to the product of its length and width. To set the figure of given data
either ordinary method or percentage method can be adopted. Percentage method is used often as
it enable to made comparison on percentage basis.

Item o
of
Expenditure Student A Student
Ordinary % Ordinary %
Shoe 3000 20.13 2900 26.13
Clothing 4500 30.20 4000 36.04
Cosmetics 2000 13.42 1200 10.81
Food 5400 36.24 3000 27.03
Total 14900 100.00 11100 100.00
 30000
25000
20000 Student B %
15000
10000
5000 Student B Ordinary
0
Student A %
Student A Ordinary

Figure 4: total expenses (in Nu.) for two students A and B

ii) Square:

Rectangle method gives difficulties in presenting data where the values of the items vary widely. In
case if the ratio of data is 1:10 or bigger, the diagram look unwieldy. To overcome the difficulties,
squares are used to represent the data having very gap between the correspondence figures.

III) Circle:

Another way of representing two-dimensional diagrams is in the form of circles. In such a diagram both
the total and component parts or sectors can be shown. The area of a circle is proportional to the square
of its radius. Circle can be used in all those cases in which squares are used. But circle are usually difficult
to compare and as such are not very popular in statistical works.

IV) Pie Diagram:

Pie diagram is used to show the breakup of a total into components parts. The pie chart is so called
because the entire graph looks like the pie, and the components resemble slices cut pie. While making
comparision, pie diagrams should be used on a percentage basis and not on an absolute basis. Since a
series of pie diagrams showing absolute figures would require that larger totals be represented by larger
circles.
Three dimensional Diagrams:

Three dimensional diagrams also known as volume diagram, consist of cubes, cylinders, spheres, etc.in
such diagrams, three things namely length, width and height have to be taken into account. Such
diagrams are used where the range of difference between the smallest and the largest value is very
large.

The examples of three dimensional diagrams are Cubes, Pictograms and Cartograms.