What is statistics in economic?

Economic statistics is a topic in applied statistics that concerns the collection,

processing, compilation, dissemination, and analysis of economic data.
It is also common to call the data themselves 'economic statistics', but for this
usage see economic data.
• The data of concern to economic statistics may include those of
an economy of region, country, or group of countries.
• Economic statistics may also refer to a subtopic of official statistics for
data produced by official organizations (e.g. national statistical services,
intergovernmental organizations such as United Nations, European
Union or OECD, central banks, ministries, etc.).
• Analyses within economic statistics both make use of and provide the
empirical data needed in economic research, whether descriptive
or econometric.
• They are a key input for decision making as to economic policy. The
subject includes statistical analysis of topics and problems
in microeconomics, macroeconomics, business, finance, forecasting, dat
a quality, and policy evaluation.
• It also includes such considerations as what data to collect in order to
quantify some particular aspect of an economy and of how best to
collect in any given instance.

Positives of statistical study & statistical limitations in Economic?

Positives
1) Everybody watches weather forecasting. Have you ever think how do you
get that information? There are some computers models build on statistical
concepts. These computer models compare prior weather with the current
weather and predict future weather.
2) Statistics mostly used by the researcher. They use their statistical skills to
collect the relevant data. Otherwise, it results in a loss of money, time and
data.
3) What do you understand by insurance? Everybody has some kind of
insurance, whether it is medical, home or any other insurance. Based on an
individual application some businesses use statistical models to calculate
the risk of giving insurance.
 4) In financial market also statistic plays a great role. Statistics are the key of
how traders and businessmen invest and make money.
5) Statistics play a big role in the medical field. Before any drugs prescribed,
scientist must show a statistically valid rate of effectiveness. Statistics are
behind all the study of medical.
6) Statistical concepts are used in quality testing. Companies make many
products on a daily basis and every company should make sure that they
sold the best quality items. But companies cannot test all the products, so
they use statistics sample.
7) In everyday life we make many predictions. For examples, we keep the
alarm for the morning when we don’t know that we will be alive in the
morning or not. Here we use statistics basics to make predictions.
8) Doctors predict disease on based on statistics concepts. Suppose a survey
shows that 75%-80% people have cancer and not able to find the reason.
When the statistics become involved, then you can have a better idea of
how the cancer may affect your body or is smoking is the major reason for
it.
9) News reporter makes a prediction of winner for elections based on political
campaigns. Here statistics play a strong part in who will be your
governments.
10) Statistics data allow us to collect the information around the world.
The internet is a devise which help us to collect the information. The
fundamental behind the internet is based on statistics and mathematics
concepts.
Limitations
1) Statistics does not study about individuals: Statistics are expressed in facts.
It does not study individuals. For example, there are five students in a class.
Statistics only tells the average marks obtained in class not how many
marks are obtained by every student in the class.
2) It does not study the qualitative aspect of problem: The most important
condition of statistical study is that subject of investigation and inquiry
should be capable of being qualitatively measured. For example, honesty,
poverty, etc.
3) Statistics can be misused: The result obtained can be manipulated
accordingly to one’s own interest and such manipulated results can mislead
the community.
 4) Statistical results lack mathematical accuracy: The results drawn from
statistical analysis are normally in approximates. As the statistical analysis is
based on observation of mass data, number of inaccuracies may be present
and it is difficult to rectify them.
5) Uniformity and homogeneity of data: It is essential that data must have the
quality of uniformity and homogeneity. Heterogeneous data are not
comparable. For example, it would be meaningless to compare the heights
of men with heights of trees because these figures are of heterogeneous
character.
Uses of Discriptive Statistics?
• Use graphical and numerical methods to calculate and illustrate
descriptive statistics
• Use the basic concepts of probability and Bayes Theorem
• Identify the statistical concepts in questions about economic models
• Use Excel to make basic statistical calculations and critically evaluate the
basis for these calculations;
• Manipulate the probability models that are most widely used in
economics, and apply them correctly and carry out the appropriate
statistical analysis
• Identify the appropriate regression model to apply to an economics
dataset
• Identify common problems which may affect regression analyses