Introduction 1

Notes

Unit 1: Introduction

Structure:
1.1 Introduction to Descriptive Statistics
1.2 The Objects of Statistics
1.3 Characteristics of Statistics in the Plural Sense or Numerical Data
1.4 Functions of Statistics
1.5 Scope of Statistics
1.6 Limitations of Statistics
1.7 Distrusts of Statistics
1.8 Diagrammatical and Graphical representation of data
1.9 Bar Diagram
1.10 Types of Bar Diagram
1.11 Frequency Polygons
1.12 Ogives
1.13 Summary
1.14 Check Your Progress
1.15 Questions and Exercises
1.16 Key Terms
1.17 Check Your Progress: Answers
1.18 Case Study
1.19 Further Readings
1.20 Bibliography

Objectives

After studying this unit, you should be able to understand:

 Concept of descriptive statistics
 Functions of Statistics
 Scope of Statistics
 Objects of Statistics
 Distrusts of Statistics
 Concept of Diagrammatical representation of data
 Concept of Graphical representation of data
 Types of Bar diagram
 Overview of Frequency Polygons and Ogives

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Notes 1.1 Introduction to Descriptive Statistics

Descriptive statistics is the type of statistics that probably springs to most people’s
minds when they hear the word “statistics.” Here the goal is to describe.
Numerical measures are used to tell about features of a set of data. There are a
number of items that belong in this portion of statistics, such as:
1. The average or measure of the center of a data set, consisting of the mean,
median, mode or mid-range.
2. The spread of a data set, which can be measured with the range or standard
deviation.
3. Overall descriptions of data such as the five number summary.
4. Other measurements such as skewness and kurtosis.
5. The exploration of relationships and correlation between paired data.
6. The presentation of statistical results in graphical form.

Origin and Growth of Statistics

The origin of statistics is revealed by the word itself which is said to have been derived
either from the Latin Word 'Status' or the Italian word 'statista' or the German word 'Statistik'
which means political state. Statistics was used as a by-product of administrative activity.
Govt. maintains records of various types of numerical data on population, births, deaths,
literates, illiterates, employment, unemployment, Income, Taxes, Imports, exports etc.
Statistics was used as a technique to collect periodical data to ascertain the manpower
and material strength for military and fiscal purposes.
The theoretical development of statistics has its origin in the mid-seventeenth century
when many gamblers and mathematicians of France, Germany and England are credited
for its development. Pascal and P. Fermat, the two great French mathematicians made
innovative efforts to solve the famous 'Problem of point' which was posed by the famous
French gambler Chevalier De Mere. Their contribution became the foundation stone of the
Science of Probability. James Bernoulli (1654-1705) developed the 'Normal Curve'. The use
of 'Statistics' was popularized by Sir John Sinclair in his work Statistical Account of
Scotland (1791-1799). Modern Theory of Statistics was gradually developed during the
18th, 19th and 20th centuries mathematicians. Laplace (1749-1827) gave the principles
of 'Least squares' and established the 'Normal Law of Errors'. The famous statisticians
Sir Francis Galton (1822-1911), Karl Pearson (1857-1936) and W.S. Gosset contributed
to the study of Regression Analysis, Correlation Analysis as well as Chi-square test of
Goodness of Fit, and t-test respectively. R.A. Fisher, who is called "Father of Statistics",
has developed statistics for use in genetics, biometry, agriculture, psychology and
education. He also contributed to the Estimation Theory, Sampling Distribution, Analysis
of Variance (ANOVA) and design of experiments. Thus Prof. Ronald A. Fisher is the real
exponent in the development of the 'Theory of Statistics".
Meaning of Statistics
Statistics is used as general name for a large group of mathematical tools, not aiming
at absolutely accurate results but approximate results based on the theory of probability,
used to collect, analyse and interpret numerical facts for solving specific problems. Facts
that one dealt with in statistics must be capable of numerical expression. Otherwise they
do not come within the preview of statistics. Statistics is also concerned with a group
of data as for example, population of a country, sales price of the finished goods produced
by a concern etc.

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Statistics can be used either as plural or singular: Notes

When it is used as plural,
It is a systematic collection and presentation of numerical facts and figures. These
figures may be with regard to production of food grains, per capita income in a particular
state at different times, population etc. and these are generally published in trade journals,
news papers etc.
When statistics is used as singular,
In a singular sense, statistics implies statistics methods. Thus, it is a body or
technique of methods relating to the collection, classification, presentation, analysis and
interpretation of information. In a sense, statistics can be defined as:
"Statistics is the science of estimates and probabilities” - Boddington
"Statistics may rightly be called the science of averages” - Bowley
“The science which deals with the collection, analysis and interpretation of numerical
data”. - Corxton & Cowden
All definitions clearly point out the four aspects of statistics (i) collection of data,
(ii) analysis of data, (iii) presentation of data and (iv) interpretation of data.

Definitions

Prof. A.L. Bowley has given as series of definitions. At one place Bowley says
"Statistics may be called the science of counting". This view is not perfect and correct.
Statistics is not concerned with counting only. It deals more with estimates. At another
place, he says that "Statistics may rightly be called the science of averages". But calling
statistics as a science of counting or averages, confines the scope of statistics. Bowley
himself realized this drawback and stated that statistics cannot be confined to any one
sense.
Webster defined Statistics as "The classified facts respecting the condition of the
people in a state- especially those facts which can be stated in numbers or in tables
of numbers or in any tabular or classified arrangement". This definition has limited the
scope of statistics. It relates statistics only to those facts which are concerned with the
condition of the people in a state. This definition is not exhaustive because, it does not
take into account all aspects of human activity.
Seligman defines statistics as the science which deals with the methods of
collecting, classifying, presenting, comparing and interpreting numerical data collected to
throw some light on any sphere of enquiry.
According to Horace Secrist “By statistics we mean aggregate of facts affected to
a marked extent by multiplicity of cause, numerically expressed, enumerated or estimated
according to reasonable standard of accuracy, collected in a systematic manner for a
predetermined purpose and placed in relation to each other”.

1.2 The Objects of Statistics

The objects of statistics are as follows:
(i) To present facts in numerical form.
(ii) To simplify, classify and analyse numerical data so that their significance may
be clearly understood.

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Notes (iii) To bring out the broad characteristics of a group in which the individual numbers
exhibit variation in attributes.
(iv) To throw light on general economic and social conditions as guide to
administrators to decide administrative policy.
(v) To indicate business trends and tendencies so that it may be possible to plan
ahead without being caught unawares.

1.3 Characteristics of Statistics in the Plural Sense or Numerical Data

The basic feature of statistics as a quantitative or numerical data run as follows:
1. Aggregate of Facts: Statistics does not refer to a single figure but it refers
to a series of figures i.e. the totality of facts are called statistics. E.g. A single
weigh of 50 kgs is not statistics but a series relating to the weight of a group
of persons is called statistics.
2. Affected by Multiplicity of Causes: Statistics are not affected by one factor
only, rather they are affected by a large number of factors. E.g. prices are
affected by conditions of demand, supply, money supply, imports, exports and
various other factors.
3. Numerically expressed: i.e. qualitative expressions like young, old, good, bad
etc. are not statistics. To all statistics a numerical value must be attached.
For e.g., the statements like "There are 916 females per 1,000 males.
Furthermore, such numerical expressions are precise, meaningful and
convenient form of communication.
4. Enumerated or Estimated according to Reasonable Standards of Accuracy:
In case the numerical statement are precise and accurate, then these can be
enumerated. But in case the number of observations is very large, in that case
the figures are estimated. It is obvious that the estimated figures cannot be
absolutely accurate and precise. The accuracy, of course, depends on the
purpose for which statistics are collected. There cannot be uniform standard
of accuracy for all types of enquiries. E.g., enumeration refers to exact count
as there are ten students of statistics; it is 100% accurate statement. On the
other hand, estimation refers to round about figure; we say that two lakh people
participated in the Rally. There can be a few hundreds more or less. Thus
statistical results are true only on average.
5. Collected in a Systematic Manner: For accuracy or reliability of data, the
figures should be collected in a systematic manner. If the figures are collected
in a haphazard manner, the reliability of such data will decrease.
6. Collected for a Pre-determined Purpose: The purpose of collecting data must
be decided well in advance. Besides, the objective should be concrete and
specific. For example, if we want to collect data on prices, then we must be
clear whether we have to collect whole-sale or retail prices. If we want data on
retail prices, then we have to see the number of goods required to serve the
objective.
7. Placed in Relation to each other: The collection of data is generally done with
the motive to compare. The figures collected should be homogeneous for
comparison and not heterogeneous. In case of heterogeneity, the figures cannot
be placed in relation to each other.

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1.4 Functions of Statistics Notes

The various applications or functions performed by statistics are as under:
1. Simplification of Complex Facts/Classification of Data: the process of
splitting up huge collection of numerical data into certain parts which helps in
the matters of comparison and interpretation of the various features of the data.
This is done by the various improved techniques of statistics.
2. Comparison: After simplifying the data, it can it can be correlated or compared
by certain mathematical quantities like averages, ratios, co-efficient etc. to
ascertain the changes which have taken place and the effect of such changes
in the future.
3. Relationship between Facts: Statistical methods are used to investigate the
cause and effect relationship between two or more facts. The relationship
between demand and supply, money-supply and price level can be best
understood with the help of statistical methods.
4. Measurement of Effects/It guides formulation of economic policies:
Statistical methods act as a guide to measure the effect of a policy. For
example, the effect of a change in bank rate or a change in incomes tax etc.
can best be judged by the statistical methods.
5. Forecasting: Statistical methods are of great use to predict the future course
of action of the phenomenon.

1.5 Importance of Statistics

1. Importance of Statistics in Economic Planning
The main aim of economic planning is to develop the various sectors of the economy
like agriculture, industry, transport, irrigation etc. rapidly and systematically. Planning is
not possible without statistics. The planning commission requires information relating to
the demand for and supply of various commodities like food, cloth, sugar, iron and steel
in order to prepare a plan. It must also estimate the demand for various products and
services after a certain period, say 5 years. It must possess accurate information relating
to the availability of natural, capital and human resources in the counting. It must prepare
a detailed plan for the development of each sector of the economy. These detailed plans
cannot be prepared without adequate statistical data.
2. Importance of Statistics to a Business
Statistics are of great use to traders and manufacturers. They help them to make
maximum profits. A producer estimates the demand for his product or products. On the
basis of such an estimate, he decides about the quality and quantity of goods to be
produced. Similarly, a trader brings goods on the basis of his estimates of the likely
demand for his goods. If the estimates are correct, the businessman will make profit as
estimated. If he over-estimates this demand, he may find it difficult to sell his goods at
profit. On the other hand, he may in our loss. If he under estimates the demand he looses
on opportunity of making some more profit.
Statistics are very useful to banks, insurance companies, railway companies and
other public utility concerns. Statistics help the efficient organisation and supervision of
business concerns. That is why big business concerns maintain transition statistical
departments.

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Notes 3. Importance of Statistics in the Field of Research

Statistics is indispensable in research work. Most of the advancement in knowledge
has taken place because of experiments conducted with the help of statistical methods.
For example, experiments about crop yields and different types of fertilizers and different
types of soils or the growth of animals under different diets and environment are frequently
designed and analyzed with the help of statistical methods. Statistical methods also affect
research in medicine and public health. In fact, there is hardly any research work today
that one can find complete without statistical data and statistical method. Further, it is
impossible to understand the meaning and implications of most of the research findings
in various disciplines of knowledge without having at least a speaking acquaintance with
the subject of statistics.

1.5 Scope of Statistics

The importance of statistics makes it clear that the science of statistics includes
in its fold all quantitative analysis concerned with any department of enquiry. Its scope,
therefore, is stretched over all those branches of human knowledge in which a grasp of
the significance of large numbers are looked for. Its methods provide an important manner
of measuring numerical changes in complex groups & judging collective phenomenon. Its
scope is thus wide, the limiting factor being its applicability to studies of quantitative
aspects alone.
“Sciences without statistics bear no fruits, statistics without sciences have no roots.”
There is hardly any field of human knowledge where statistical methods are not
applicable. Thus, the significance of statistics has increased from the “science of kings”
to the “science of universe.”
(a) Statistics and the state: The state collects statistics on several problems.
These statistics help in framing suitable policies. All ministers and department
of government whether they be finance, transport, defence, railways, food,
commerce etc. depend heavily on factual data for their efficient functioning.
(b) Statistics and business: With the growing size and ever increasing competition
the problems of the business enterprises are becoming complex and they are
using more and more statistics in decision making. A businessman who has
to deal in an atmosphere of uncertainty can no longer adopt the method of trial
and error in taking decisions. If he is to be successful in his decision making,
he must be able to deal systematically with the uncertainty itself by careful
evaluation and application of statistical methods, concerning the business
activities.
(c) Statistics and Economics: Economics is concerned with the production and
distribution of wealth as well as with the complex institutions set-up connected
with the consumption, saving and investment of income. Statistical data and
statistical methods are of immense help in the proper understanding of the
economic problems and in the formulation of economic policies.
(d) Statistics and physical sciences: Physical sciences seem to be making
increasing use of statistics, especially in astronomy, chemistry, biology,
engineering, meteorology, geology and certain branches of physics.
(e) Statistics and natural sciences: Statistical technique have proved to be
extremely useful in the study of all natural sciences alike astronomy, biology,
medicine, meteorology, zoology, botany etc.

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(f) Statistics and research: Statistics is indispensable in research work. Most of Notes
the advancement in knowledge has taken place because of experiments
conducted with the help of statistical methods.
(g) Statistics and other uses: Statistics is useful to bankers, brokers, insurance
companies, social workers, labour unions, trade associations, chambers of
commerce and to the politicians.

Scope of Statistics in Economics and Business

In the field of Economics, Statistics entered rather late. The relationship among
supply of, demand for and price of commodities was established with the help of statistical
analysis by the end of the 17th century. The classical economists laid more stress upon
the deceptive method of reasoning and economic laws were reasoned out in the abstract.
The economic laws were verified from observations and proved by inductive method only
during the first decade of the 20th century. The quantitative analysis was introduced along
with the qualitative analysis in the methods of study of economics. Thus, the inductive
method was introduced in addition to the classical deductive method in the science of
economics and various problems of economics were solved by the end of the 20th century.
Statistics of production help in adjusting the supply to demand, statistics of consumption
help us to find out the way in which people of different strata of society spend their income.
Statistics are very useful in knowing the standard of living and taxable capacity of people.
Statistical methods help not only in formulating appropriate economic policies but also
evaluating their effect. Econometrics which comprises application of statistical methods
to theoretical economic models is widely used in empirical economic research.
In the field of business, decision-making process is the most important function of
management. Modern business is complex and vast, involving a number of specialised
activities, government interference and cut-throat competition. A modern manager cannot
solve the complex business problems without the assistance of statistical methods. The
entire business planning is depending upon the forecasting of the future trends which is
performed only by the science of statistics. Statistics is helpful in preparing the various
budgets, conducting the market survey, fixing the wage structure based upon cost of living
indices and controlling the business activities. Statistics and statistical methods have
provided the businessman with one of his most valuable tools for decision - making. The
use of statistics in business can be extended to production, sales, purchase, finance,
personnel, accounting, marketing and product research and quality control.

1.6 Limitations of Statistics

The limitations of statistics are as follows:
1. Statistics does not study qualitative phenomenon. For e.g. honesty, intelligence,
etc.
2. Statistics does not study individual data, statistics deals with aggregate of facts.
3. Statistics laws are not exact laws.
4. Statistics does not reveal the entire information.
5. Statistics is liable to be misused.
6. Statistical conclusions are valid only on average base.
7. Statistics may lead to wrong or misleading conclusions if figures are quoted
without context.

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Notes 8. The greatest limitation is statistical data can be used properly only by persons
having thorough knowledge of the methods of statistics and proper training.
9. If statistical data are not uniform and homogenous, study of the problem is not
possible. Homogeneity of data is essential for their proper study.
10. Statistical methods are not the only method for studying a problem. There are
other methods also. A problem can be studied in various ways.

1.7 Distrusts of Statistics

There exists today a great prejudice or personal feeling against statistics. Some
people have simply blind faith in it and are ready to swear by it. Others have no faith
at all and they think adversely of statistics. The science of statistics is often commented
by some as,
“An once of truth will produce tons of statistics.”
“Statistics can prove anything.”
“Figures do not lie. Liars figures.”
“What statistics reveal is ordinary but what they hide is important.”
“History asserts without evidence, while statistics asserts contrary to the evidence.”
Following are the two interesting statements made by the great men: “There are three
kinds of lies-lies, damned lies and statistics.”- MARK TWAIN
“Statistics can be compared to miniskirts because they are short enough to make
a thing interesting and long enough to cover the subject-matter.”
All the above statements bring discredit to the science of statistics. Statistics by
nature is innocent and easily believed. It may be incomplete, inaccurate and manipulated
deliberately by prejudiced persons. The difficulty lies not with the science of statistics
but with the users who misuse. It. It is merely a tool in the hands of a statistician just
as operating tools in the hands of a surgeon. The derogatory statements about the science
of statistics are due to ignorance, resulting from unhappy experience being misled by
figures in the past. One may knowingly mishandle the statistical tools to serve his own
purpose, but statistics is not to prove or disprove anything. It is only a tool liable to be
misused. One should not blame the tools; the operator of the tools should be blamed.
With the study of statistics as a science with the recognition of its limitations and with
improvements in its techniques, the cause for its distrust is gradually warning.

1.8 Diagrammatical and Graphical representation of data

Types of diagrams one dimensional and two dimensional diagrams, percentage bar
diagrams and pie diagrams

Meaning

One of the most convincing and appealing ways in which statistical results may be
represented is through graphs and diagrams.

Importance/functions/Utility of Diagrams and Graphs

Diagrams and graphs are extremely used because of the following reasons:
(i) Diagrams and Graphs attract to the eye.
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Introduction 9

(ii) They have more memorising effect. Notes

(iii) It facilitates for easy comparison of data from one period to another.
(iv) Diagram and graphs give bird’s eye view of entire data; therefore, it conveys
meaning very quickly.
Difference between Diagrams and Graphs
(i) Diagrams are prepared in a plain paper, whereas, Graphs should be prepared
in graph paper
(ii) Diagrams are more attractive than Graphs
(iii) It conveys meaning very quickly, whereas, Graphs suited for presenting time
series and frequency distribution.

1.9 Bar Diagram

Only length of the bar is taken into account but not the width. In other wards bar
is a thick line whose width is shown merely, but length of the bar is taken into account
is called one-dimensional diagram.

1.10 Types of Bar Diagram

• Simple bar Diagram
• Subdivided bar Diagram
• Multiple bar Diagram
• Percentage bar Diagram
• Deviation Bar Charts

1. Simple Bar Diagram

It represents only one variable. Since these are of the same width and vary only
in lengths (heights), it becomes very easy for comparative study. Simple bar diagrams
are very popular in practice. A bar chart can be either vertical or horizontal; for example
sales, production, population figures etc. for various years may be shown by simple bar
charts

Illustration - 1

The following table gives the birth rate per thousand of different countries over a certain
period of time.
Country India Germany U. K. New Zealand Sweden China
Birth rate 33 16 20 30 15 40
Solution:

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Notes

Comparing the size of bars, China’s birth rate is the highest, next India, while
Germany and Sweden equal in the lowest positions.
Illustration - 2
Represent the data by using a simple bar diagram.
Countries: A B C D E F
Production of Rice (000’s tons): 38 42 29 28 18 11
Solution:

50
42
40 38
29 28
30
20 18
11
10
0
A B C D E F

2. Sub-divided Bar Diagram

In a subdivided bar diagram, each bar representing the magnitude of given value is
further subdivided into various components. Each component occupies a part of the bar
proportional to its share in the total
Illustration - 1
Present the following data in a sub-divided bar diagram.
Year/Faculty Science Humanities Commerce
2014-2015 240 560 220
2015-2016 280 610 280
Solution:
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Introduction 11

Notes

Illustration - 2
The Number of Students in University X during 2008 to 2011 are as follows. Represent
the data by a similar diagram.
Year Arts Commerce Science Total
2008 - 2009 20,000 10,000 5,000 35,000
2009 - 2010 26,000 9,000 7,000 42,000
2010 - 2011 31,000 9,500 7,500 48,000
Solution:

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Notes Illustration - 3

The following table shows the result of B.B.M. students for the last 3 years. Represent
the data by sub-divided bar diagram.

Year I class II class Failed Total

2000 600 1600 1200 3400

2001 700 2100 1500 4300
2002 600 2600 1600 4800
Solution:

5000 4800
4500 4300 Ist Class

1600
4000 IInd Class

1500
3500 3400 Failed
3000
1200

2500

2600
2000
2100
1600

1500
1000
600
700
600

500

2000 2001 2002

Sub-divided bar diagrams showing the results of BBM students.

3. Multiple Bar Diagram

In a multiple bar diagram two or more set of related data are represented the
components are shown as separate adjoining bars. The height of each bar represents the
actual value of the component. The components are shown by different shades or colours.

Illustration - 1

The table below gives data relating to the exports and imports of a certain country
X (Rs. in Lakhs) during the four years ending in 2007-2011. Represent the data by a suitable
diagram:
Year Export Import
2007-2008 319 250
2008-2009 339 263
2009-2010 345 258
2010-2011 308 206

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Solution: Notes

Illustration - 2

Construct a suitable bar diagram for the following data of number of students in two
different colleges in different faculties.
College Arts Science Commerce Total
A 1200 800 600 2600
B 700 500 600 1800
1800
= College 'A'

1600
= College 'B'

1400

1200
1200
No. of students

1000

800
800 700
600 600

600 500

400

200

ARTS SCIENCE COMMERCE

Different departments

Fig: A multiple bar diagram showing numbers of students in two different colleges
in different departments.

Illustration - 3

Read the following data of results of II Sem. B.B.M. Statistics Examiniation of

Bangalore University held in May 2006, 2007 and 2008 in a multiple bar diagram:

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Notes Year I Class I Class III Class Failed

2006 100 300 500 300
2007 120 400 600 280
2008 100 500 700 300
Solution:

700
600
500
400 Ist Class
300 IInd Class
IIIrd Class
200
Failed
100
0
2006 2007 2008

4. Percentage bar Diagram

In percentage bar diagram the length of the entire bar kept equal to 100 (Hundred).
Various segment of each bar may change and represent percentage on an aggregate.

Illustration - 1

Represent the following population of city ‘A’ by a percentage diagrams:

Years men women children

1995 45% 35% 20%

1996 44% 34% 22%
1997 48% 36% 16%
Solution:
100
20%

16%
22%

90 Children
80 Women
70 Men
36%
35%

34%

60
50
40
48%

30
45%

44%

20
10

1995 1996 1997

Percentage diagrams showing the composition of population

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5. Deviation Bar Charts Notes

Deviation bars are used to represent net quantities - excess or deficit i.e. net profit,
net loss, net exports or imports etc. Such bars have both positive and negative values.
Positive values lie above the base line and negative values lie below it.

Illustration - 1

Following are the figures relating to exports and imports for six years. Represent
the information by deviation bars.

Years Exports Imports Balance

(` in lakhs) (` in lakhs) of payment (` in lakhs)

1999 25 5 +20
2000 70 20 +50
2001 70 110 -40
2002 90 50 +40
2003 100 130 -30
Solution:
Diagram showing balance of payment (in lakhs `) for five years

+50 Favourable
+50 +40
Unfavourable
+40
+30 +20
+20
+10
2001 2003
0
1999 2000 2002
-10
-20
-30
-30
-40
-40
-50

1.11 Frequency Polygons

Here the frequencies are plotted against the mid-points of the class-intervals and
the points thus obtained are joined by line segments.
On comparing the Histogram and a frequency polygon, you will notice that, in
frequency polygons the points replace the bars (rectangles). Also, when several
distributions are to be compared on the same graph paper, frequency polygons are better
than Histograms.

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Notes Illustration - 1

Draw an Histogram and frequency polygon for the following data.

Age in Years No. of persons

10 - 20 3
20 - 30 16
30 - 40 22
40 - 50 35
50 - 60 24
60 - 70 15
70 - 80 2

Solution:
Scale : along x axis 1 cm = 10 units
along y axis 1 cm = 5 units
35
30 Frequency polygon
No. of persons

25
20 Histogram
15
10
5
0
10 20 30 40 50 60 70 80
age
Frequency polygon showing the distribution of persons of different age group.

1.12 Ogives
When frequencies are added, they are called cumulative frequencies. The curve
obtained by plotting cumulating frequencies is called a cumulative frequency curve or an
ogive (pronounced as ojive).
To construct an Ogive: (i) Add up the progressive totals of frequencies, class by class,
to get the cumulative frequencies. (ii) Plot classes on the horizontal (x-axis) and cumulative
frequencies on the vertical (y-axis).
(a) Less than Ogive: To plot a less than ogive, the data is arranged in ascending
order of magnitude and the frequencies are cumulated from the top i.e., adding.
Cumulative frequencies are plotted against the upper class limits. Ogives under
this method, gives positive curve
(b) Greater than Ogive: To plot this ogive, the data are arranged in the ascending
order of magnitude and frequencies are cumulated from the bottom or subtracted

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from the total from the top. Cumulative frequencies are plotted against the lower Notes
class limits. Ogives under this method, gives negative curve
Uses: Certain values like median, quartiles, deciles, quartile deviation, co-efficient
of skewness etc. can be located using ogives. Ogives are helpful in the comparison of
the two distributions.

Illustration - 1

Draw less than and more than ogive curves for the following frequency distribution
and obtain median graphically. Verify the result.

C.I. 0-20 20-40 40-60 60-80 80-100 100-120 120-140140-160

f 5 12 18 25 15 12 8 5

Solution:

Size lcf mcf size

20 5 100 0
40 17 95 20
60 35 83 40
80 60 65 60
100 75 40 80
120 87 25 100
140 95 13 120
160 100 5 140

180

160

140

120

100 Less than

80

60

40

More than
20

0 X
20 40 60 80 100 120 140 160 180

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Notes Illustration - 2

Find the median from the following series. Also draw less than ogive, more than ogive
and locate median on a graph.
Income (`) No. of Persons
0-20 82
20-40 112
40-60 150
60-80 95
80-100 48
Solution:
C.I. f Class l.c.f Class m.c.f.
(Less than) (More than)

0-20 82 20 82 0 487
20-40 112 40 194 20 405
40-60 150 60 344 40 293
60-80 95 80 439 60 143
80-100 48 100 487 80 48
No. of Persons

Less than ogive

More than ogive

20 40 60 80 100
Median 50 Median Income

1.13 Summary
Statistics is used as general name for a large group of mathematical tools, not aiming
at absolutely accurate results but approximate results based on the theory of probability,
used to collect, analyse and interpret numerical facts for solving specific problems. Facts
that one dealt with in statistics must be capable of numerical expression. Otherwise they
do not come within the preview of statistics. Statistics is also concerned with a group
of data as for example, population of a country, sales price of the finished goods produced
by a concern etc.

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Introduction 19

One of the most convincing and appealing ways in which statistical results may be Notes
represented is through graphs and diagrams.
Subdivided bar diagram, each bar representing the magnitude of given value is further
subdivided into various components. Each component occupies a part of the bar
proportional to its share in the total.
Multiple bar diagram two or more set of related data are represented the components
are shown as separate adjoining bars. The height of each bar represents the actual value
of the component. The components are shown by different shades or colours.
Deviation bars are used to represent net quantities - excess or deficit i.e. net profit,
net loss, net exports or imports etc. Such bars have both positive and negative values.
Positive values lie above the base line and negative values lie below it.

1.14 Check Your Progress

I. Fill in the Blanks

1. The goal of ___________ is to focus on summarizing and explaining a specific
set of data.
2. A graph that uses vertical bars to represent data is called a ____.
3. A chart is a graphic representation of __________.
4. Frequency curve is _____________.
5. The _______________ is a device of graphic representation of a frequency
distribution.
6. The curve obtained by plotting cumulative frequencies is called an___________.

II. True or False

1. Sample statistics are denoted by the Roman letters.
2. A ‘Graph’ is a Vivid or intense or bright form of presentation of data.
3. Ogive is a set of vertical bars whose areas are proportional to the frequencies
represented.
4. A frequency polygon is a close figure of three sides.
5. A graph of a cumulative frequency distribution is called ogive.

III. Multiple Choice Questions

1. Numerical methods and graphical methods are specialized procedures used in
[a] Social statistics
[b] Business statistics
[c] Descriptive statistics
[d] Education statistics
2. A frequency polygon is constructed by plotting frequency of the class interval
and the
[a] lower limit of the class
[b] mid value of the class
[c] any values of the class
[d] upper limit of the class

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20 Quantitative Techniques in Management

Notes 3. Procedures of descriptive statistics and control charts which are used to improve
process are classified as
[a] Statistical tools
[b] Parallel tools
[c] Serial tools
[d] Behavioral tools
4. A circle in which sectors represents various quantities is called –
[a] Non of these
[b] Frequency Polygon
[c] Pie Chart
[d] Histogram
5. ___________ are used when you want to visually examine the relationship
between two quantitative variables.
[a] Bar graphs
[b] Pie graphs
[c] Line graphs
[d] Scatter plots
6. A Histogram contains a set of
[a] Adjacent rectangles
[b] Adjacent triangles
[c] Non Adjacent Rectangles
[d] Adjacent squares
7. Component bar charts are used when data is divided into
[a] Circles
[b] Parts
[c] Groups
[d] None of these

1.15 Questions and Exercises

I. Short Answer Questions

1. What do you mean by statistics?
2. Define statistics.
3. Define Prof. Horace Secrists’ definition of statistics.
4. What do you mean by diagrams?
5. What is bar diagrams?
6. Define line diagrams.
7. Define simple bar diagrams.
8. What isFrequency Polygons?
9. What is Ogives?

II. Extended Answer Questions

1. Explain the functions of statistics.
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Introduction 21

2. Define statistics. Explain the scope of statistics. Notes

3. What is the scope of statistics in economics and business?
4. What are limitations of business statistics?
5. Explain the distrust of statistics.
6. What are the advantages of diagrammatical presentation of data?

1.16 Key Terms

 Statistics: Statistics as the science which deals with the methods of collecting,
classifying, presenting, comparing and interpreting numerical data collected to
throw some light on any sphere of enquiry.
 Bar Diagram: Only length of the bar is taken into account but not the width.
In other wards bar is a thick line whose width is shown merely, but length of
the bar is taken into account is called one-dimensional diagram.
 Simple Bar Diagram: It represents only one variable. Since these are of the
same width and vary only in lengths (heights), it becomes very easy for
comparative study. Simple bar diagrams are very popular in practice.
 Percentage bar diagram: the length of the entire bar kept equal to 100
(Hundred). Various segment of each bar may change and represent percentage
on an aggregate.

1.17 Check Your Progress: Answers

I. Fill in the Blanks
1. Descriptive statistics 2. Bar graph
3. Data 4. Asymptotic x-axis
5. Histogram 6. Ogive
II. True or False
1. True 2. True
3. False 4. True
5. True
III. Multiple Choice Questions
1. (c) 2. (b)
3. (a) 4. (a)
5. (d) 6. (a)
7. (c)

1.18 Case Study

Draw less than and more than ogives for the following data.
Salary: 0-40 40-80 80-120 120-160 160-200 200-240 240-280
No. of
Employees 9 36 91 147 87 22 8
Also locate the value of median and verify the answer.

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22 Quantitative Techniques in Management

Notes 1.19 Further Readings

1. Richard I. Levin, David S. Rubin, Sanjay Rastogi Masood Husain Siddiqui,
Statistics for Management, Pearson Education, 7th Edition, 2016.
2. Prem.S.Mann, Introductory Statistics, 7th Edition, Wiley India, 2016.
3. Gareth James, Daniela Witten, Trevor Hastie, Robert Tibshirani, An Introduction
to Statistical Learning with Applications in R, Springer, 2016.
4. Aczel A.D. and Sounderpandian J., “Complete Business Statistics”, 6th edition,
Tata McGraw Hill Publishing Company Ltd., New Delhi, 2012.
5. Anderson D.R., Sweeney D.J. and Williams T.A., Statistics for business and
economics, 11th edition, Thomson (South – Western) Asia, Singapore, 2012.

1.20 Bibliography
1. Srivastava V. K. etal – Quantitative Techniques for Managerial Decision Making,
Wiley Eastern Ltd
2. Richard, I.Levin and Charles A.Kirkpatrick – Quantitative Approaches to
Management, McGraw Hill, Kogakusha Ltd.
3. Prem.S.Mann, Introductory Statistics, 7th Edition, Wiley India, 2016.
4. Aczel A.D. and Sounderpandian J., “Complete Business Statistics”, 6th edition,
Tata McGraw Hill Publishing Company Ltd., New Delhi, 2012.
5. Anderson D.R., Sweeney D.J. and Williams T.A., Statistics for business and
economics, 11th edition, Thomson (South – Western) Asia, Singapore, 2012.
6. Budnik, Frank S Dennis Mcleaavey, Richard Mojena – Principles of Operation
Research - AIT BS New Delhi.
7. Sharma J K – Operation Research- theory and applications-Mc Millan,New Delhi
8. Kalavathy S. – Operation Research – Vikas Pub Co
9. Gould F J – Introduction to Management Science – Englewood Cliffs N J Prentice
Hall.
10. Naray J K, Operation Research, theory and applications – Mc Millan, New Dehi.
11. Taha Hamdy, Operations Research, Prentice Hall of India
12. Tulasian: Quantitative Techniques: Pearson Ed.
13. Vohr.N.D. Quantitative Techniques in Management, TMH.
11. Stevenson W.D, Introduction to Management Science, TMH.
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