Numerous Objective Questions including MCOs & MROs, VSAQs, a Pe eoSTATISTICS for ECONOMICS CLASS XI Based on the latest revised syllabus prescribed by CBSE for Class XI under 10+2 Pattern of Secondary School Certificate Examination with SUPPLEMENT Additional matter for each chapter is included in the Supplement consisting of Objective Type Questions which include: Multiple Choice ‘Type, Multiple Response Type, Matching Questions, Fill in the Blanks and True or False Type Questions. (ln Pursuance of the CBSE Curriculum for Session 2020-21 and onwards). SANDEEP GARG B.Com. (H), CA DHANPAT RAI PUBLICATIONS (P) LTD. 22, ANSARI ROAD, DARYAGANJ, NEW DELHI-110002 Ph.: 2827 4073, 2324 6573. E-Mail ish.dhanpat@gmail.comContents Preface (iy jNIT 1: INTRODUCTION 1. Economics: An Introduction... ra 2. Meaning, Scope and Importance of Statistics ............. 21-246 JNIT 2: COLLECTION, ORGANISATION AND PRESENTATION OF DATA 3.1-3.49 44-452 1.5.1 -5.22 1. 6.1 -6.25 171-748 3. Collection of Data 4, Organisation of Data......... 5. Tabular Presentation 6. Diagrammatic Presentation ..... 7. Graphic Presentation UNIT 3: STATISTICAL TOOLS AND INTERPRETATION 8. Measures of Central Tendency — Arithmetic Mean... 8.1-8.57 9. Measures of Central Tendency — Median and Mode ..... 9.1-9.81 10. Measures of Dispersion sas 10.4 - 10.90 11. Measures of Correlation .....:.ccccsccsessessseee 211.4 11.56 12, Index Numbers ......---- 12.1 12.50 APPENDICES Mathematical Tools used in Economics A3-AS List of Formulae and Abbreviations AT-AN2 Value Based Questions. A13-A.16 Glossary of Statistical Terms . . AAT -ANB Logarithm and Antilogarithm Table ... 1 AN9-A.22 SUPPLEMENT .. Hao S898 Actional Matter for each chapter consisting of Objective Type Questions which include: Multiple Choice Type, Multiple Response Type, Matching Wuestions, Fill in the Blanks and True or False Type Questions.1 ECONOMICS: AN INTRODUCTION LEARNING OBJECTIVES 4.1 INTRODUCTION 1.2. MEANING OF ECONOMICS 1.3 ECONOMIC AND NON-ECONOMIC ACTIVITIES 1.1 INTRODUCTION The science of Economics is not very old. In fact, its origin can be traced to 1776, when Adam Smith’s book ‘An Enquiry into the Nature and the Causes of Wealth of Nations’ was published. With the increase in areas of human activity, the scope of Economics has considerably increased over the years. The word ‘Economics’ has been derived from two Greek words ‘Oikos’ (a house) and ‘nemein’ (to manage). Thus, economics means ‘Household Management’. Earlier, it used to be called as ‘Political Economy’. 4.2 MEANING OF ECONOMICS — J _____________- As a subject, Economics is not very old. However, there is no harmony on its definition. Different economists have defined it in different ways, which has led to a lot of disputes and misconceptions. Various definitions of economics developed during the course of history have been broadly divided into four parts: 1, Wealth Definition by Adam Smith 2. Welfare Definition by ‘Alfred Marshall 3, Scarcity Definition by Lionel Robbins 4. Growth Oriented Definition by Samuelson Wealth Definition According to Adam Smith, ‘Economics is the science of wealth’ * Inthe ordinary language, wealth means money. © But in economics, the term ‘wealth’ has a special meaning. In Economics, wealth refers to those goods which satisfy human wants. 141.2 Gee eee eeCe eee _____-__..._ Stattsties for Class x) « Adam Smith was of the view that economics is concerned with the problems arising from wealth-getting and wealth-using activities of people. + He was interested mainly in studying the ways by which the wealth of all nations could be increased. Welfare Definition According to Alfred Marshall, ‘Economics is a study of man in the ordinary business of life. It enquires how he gets his income and how he uses it’. © Thus, itis on the one side, the study of wealth and on the other and more important side, a part of the study of man. * According to Marshall, the primary object and end of economics is the promotion of material welfare, which is part of human welfare. © Due to this reason, he shifted the emphasis from wealth to welfare. Scarcity Definition According to Prof. Lionel Robbins, ‘Economics is the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses’. © Scarcity definition of economics was given by Robbins in his book ‘An Essay on the Nature and Significance of Economic Science’, published in 1932. © Scarcity definition is based on following fundamental characteristics of human existence, which gives rise to economic problem: (i) Unlimited Wants: Man has unlimited wants or ends, i.e. they can never be fully satisfied. No sooner a want is satisfied, a new want emerges. (ii) Scarcity of Resources: Scarcity refers to the limitation of supply in relation to demand for @ commodity. Scarcity is universal and applies to all individuals, organisations and countries. (iii) Alternative uses: Resources are not only scarce, but they can also be put to various uses. It makes choice among resources more important. According to Robbins, these fundamental characteristics are found everywhere, in all countries and at all times. Economics deals with how the scarce resources of society would be allocated to the satisfaction of different wants. Scarcity is the root of all Economic Problems Scarcity refers to a situation when resources are not enough to satisfy all the wants of its people. Scarcity is pervasive, and is a fact of economic life for each and every individual, in the whole world. Scarcity of resources is the basic reason for existence of economic problems in all ecohomies. There would have been no economic problem, if resources were not scarce.Economies: An Introduction Scarcity affects our daily life... We face various forms of scarcity in our daily life. The long queues at railway reservation counters, crowded buses and trains, shortage of essential commodities, increasing prices of petrol, vegetables or pulses, etc, are all manifestations of scarcity. We face scarcity because the things that satisfy our wants are limited in availability. Economics is studied because it enables us to understand different aspects of the economy and helps in analysing problems and policies of the government. However, the main reason for the study of economics can be simplified to a single word:’Scarcity’.In other words, human wants are greater than the available resources. So, there is a need to allocate these scarce resources for the satisfaction of never ending human wants. Hence, Economics is concerned with the selection of resources under conditions of scarcity. Growth Oriented Definition According to Prof. Samuelson, ‘Economics is the study of how man and society choose, with or without the use of money, to employ scarce productive resources, which could have alternative uses, to produce various commodities over time and distribute them for consumption now and in the future among various people and groups of society.’ Samuelson’s definition tells us that economics is a social science and it is mainly concerned with the way how society employs its limited resources for alternative uses. So, it is a modified version of scarcity definition. Samuelson’s definition is considered to be the most appropriate and satisfactory. It not only includes ail the issues which were highlighted in the earlier definitions, but also takes up the issue of economic growth and social welfare. DEFINITIONS OF ECONOMICS Welfare ‘Scarcity Growth Oriented: Definition Definition Definition By By By By Adam Smith Alfred Marshall Prof. Lionel Robbins Prof. Samuelson Conclusion We can conclude with the following definition of economics which is mainly used by many of the economists: “Economics is the study of how people and society choose to employ scarce resources that could have alternative uses in order to produce various commodities that satisfy their wants and to distribute them for consumption among various persons and groups in society.”———_____ Statistics for Class xj 1.3 ECONOMIC AND NON-ECONOMIC ACTIVITIES introduction ‘All human beings are engaged in some activity or the other in order to satisfy their basic needs, ror evanple, farmers are busy in their field, workers are working in factories, professionals (like CA’s or Doctors) are busy in their profession. Depending on wants, all human activities can broadly be divided into two categories: 1. Economic Activities 2. Non-Economic Activities — Economic Activities Non-Economic Activities (Undertaken to eam money) (Undertaken to get satisfaction) Economic Activities Economic activities refer to those activities, which are undertaken to earn a living. Foy example worker working in a factory, shopkeeper selling goods in his shop, doctor attending to patients in his clinic, etc. Economic activities are concerned with all those activities, which are concerned with the Production, Consumption and Distribution of goods and services, which are not available free. So, every economy should undertake three main economic activities: () Consumption: Consumption isan economic activity which deals with the use of goods and services ‘for the satisfaction of human wants. Eating of bread, drinking of milk, wearing watches, listening music, etc. are consumption activities. (ii), Production: Production refers to all activities which are undertaken to produce goods and services ‘for generation of income and satisfying human wants. It is the process of converting raw material into finished products. Land, labour, capital and entrepreneur are the four factors of production. The activities of farmer, carpenter, trader, teacher, doctor, shopkeeper, etc. all come under production. Two Vital Elements of an Economy: “Production” and “Consumption” are the two essential economic activities of an economy. Generally, every individual in an economy is engaged either in consumption activities or in production activities. When an individual is engaged in the consumption of goods or services, he is acting as a consumer. Similarly, when an individual is engaged in the production of some goods or services, he is acting as a producer. (4) Distribution: Distribution is that economic activity which studies how income generated is distributed among the factors of production. It deals with determining how the total income arising from production process (known as Gross Domestic Product or GDP) is distributed to land, labour, capital and entrepreneur in the form of rent, wages, interest and profit respectively.Economics: An Introduction rata err — 15 Consumer: A consumer is one who consumes goods and services for the satisfaction of his wants. Producer: A producer is one who produces goods and services for the generation of income. For example, farmer or a manufacturer. Service holder: A Service holder is a person who work for some other person and get paid for it in the form of wages or salary. Service provider: A Service provider is a person who provides some Kind of services to other for a payment. For example, Lawyer, Doctor, Banker, etc. Subject Matter of Economics The subject matter of economics is divided into following sections of study: 1. Consumption: In consumption, we study wants, their origin, nature and characteristics and the laws governing them. 2. Production: In production, we study the means of production, their basic features and also the laws governing production. 3. Exchange: In exchange, the price determination through the forces of demand and supply is studied. 4. Distribution: We know that production is the result of the combined efforts of the four factors of production namely land, labour, capital and entrepreneur. So, the production is distributed among these factors in the form of rent, wages, interest and profit respectively. This division is studied in the distribution section of economics. 5. Public Finance: Due to increase in the role of Government, Public Economics has now emerged as a separate branch of study, Public Finance is the most important topic ‘of Public Economics, which deals with the economics of government. It studies mainly about the income and expenditure of government. Non-Economic Activities Activities which are not concerned with creation of money or wealth are known as Non- Economic activities. £0” example, housewife cooking food for her family or a teacher teaching his own son. In non-economic activities, there is no expectation of any kind of monetary reward or benefit. They are inspired by sentimental reasons and are performed out of love, sympathy, sentiments, patriotism, etc. Some more examples of non-economic activities performed in the economy are: (.) Charitable activities like blood donation camps, free education to needy students; (ii) Social activities like get-together, attending parties; (ili) Political activities performed by different political parties; (iv) Religious activities like praying to God.Statistics for Class X| OF KEY POINTS © Wealth Definition: According to Adam Smith, ‘Economics is the science of wealth’. * Welfare Definition: According to Alfred Marshall, ‘Economics is a study of man in the ordinary business of life. It enquires how he gets his income and how he uses it’. * Scarcity Definition: According to Prot.Lionel Robbins, ‘Economics the science which stusies human behaviour as a relationship between ends and scarce means which have alternative uses’. * Growth Oriented Definition: According to Prof. Samuelson, ‘Economics is the study of how man and society choose, with or without the use of money, to employ scarce productive resources, which could have alternative uses, to produce various commodities over time and distribute them for consumption now and in the future among various people and groups of society’ * Economic Activities refer to those activities, which are undertaken to eam a living, For example, worker working in a factory, shopkeeper selling goods in his shop, doctor attending to patients in his clinic, etc. Every economy undertakes 3 main economic activities: (i) Consumption is an economic activity which deals with the use of goods and services for the satisfaction of human wants. (ii) Production refers to all activities which are undertaken to produce goods and services for generation of income and satisfying human wants. (ii) Distribution is that economic activity which studies how income generated is distributed among the factors of production. * Non-Economic Activities refer to those activities, which are not concerned with creation of money or wealth. For example, housewife cooking food for her family or a teacher teaching his own son. [HOTS] REMEMBERING + UNDERSTANDING « APPLICATION BASED QUESTIONS Q. 1. “An activity can be an economic activity in one situation and non-economic in another situation’, Do you agree? Give an example to justify the given statement. Ans. Yes, | agree with the given statement. For example, if a doctor treats his patients at the clinic, then itis an economic activity as the doctor gets fees for that. However, if the doctor treats his son at home, then itis non-economic activity Q.2. ‘Scarcity is the root of all Economic Problems’ Comment. Ans. The given statement is correct. Scarcity refers to a situation when resources are not enough to satisty all the wants of ts people. Scarcity is pervasive, and is a fact of economic life for each and every individual, in the whole word. Scarcity of resources is the basic reason for existence of economic problems in all economies. There would have been no economic problem, if resources were not scarce. Q.3. Classify the following activities into economic and non-economic activities: (a) Smita cooking food for her family. (b) A person selling cold drinks on the station (c) A student praying in temple for good marks in test. (d) Doctor treating patients at his olinic. (©) An old lady attending ‘Satsang’. (9 A person teaching his daughter for her Board Exams. ‘Ans. Economie Activities: (b) and (d); Non-Economic Activities: (a), (c), (e) and ().Economics: An Introduction : 17 Q.4. Identify the economists from the following definitions of Economics given by various economists: (a) Economiesis the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses. (b) Economicsis a study of man in the ordinary business of life. It enquires how he gets his income and how he uses it. (c) Economics is the science of wealth. Ans. (a) Prof. Lionel Robbins; (b) Alfred Marshall; (c) Adam Smith. Q.5. From the following pictorial presentations, identify the following activities into economic and non- economic activities: (9) ‘Ans. Economic Activities: (b), (c) and (e); Non-Economic Activities: (a), (d) and (1). QUESTIONS 1. Fill in the blanks with appropriate words: (i) Amother teaching her child is a activity, while a teacher teaching ‘the students is an activity. (i) _____ definition of Economics has been given by Lionel Robbins. (ii) is an economic activity which deals with use of goods and services for satisfaction of human wants. ) activities are undertaken to eam a living. ‘Ans. (i) Non-economic, Economie; (i) Scarcity; li) Consumption; (iv) Economic I. State whether the following statements are True or False: (i) Scarcity definition of Economics has been given by Adam Smith.Statistics tor Class ¥) 1.8 or puneees (i) Production, consumption and distribution are the three rain economic activities undertaken by i , every economy. f (i) Alternative uses of resources is the root of all Economic Problems. (iv) Service provider is a person who work for some other person for wages. : {v) Non-economic activities are undertaken without any expectation of monetary benefit. Ans. True: (ii), (v); False: (i); (il); (iv) iI. Multiple Choice Questions: Tick the Correct answer from the given choices: is a person who by goods and services for the satisfaction of his wants. (b) Consumer (d) Service holder 1. (a) Producer (c) Service provider is a person who work for some other person and get paid for it. (b) Producer (a) Service holder (d) Consumer (c) Service provider 3. Economic problem arises due to: (a) Unlimited wants (c) Alternative uses of resources 4 is a person who produces goods and services. (a) Consumer (b) Service provider (a) Service holder (0) Scarcity of resources (d) Allof the above (c) Producer 5. According to , ‘Economics is the science of wealth’. (a) Adam Smith (b) Alfred Marshall (c) Prot. Samuelson (d) Lione! Robbins 6. Activities which are undertaken to eam a living are known as ‘ (a) Economie Activities () Non-Economic Activities (0) Either (a) or (b) (d) Both (a) and (b) 7. Which of the following are economic activities? (a) Distribution (b) Production () Consumption (a) Allof the above 8. Scarcity of resources applies to all (a) Individuals () Organisations (©) Countries (a) Allof the above 9. Welfare definition of Economics has been given by: (2) Lionel Robbins (>) Adam Smith (©) Alfred Marshall (0) Prof. Samuelson 10. Which definition was given by Adam Smith? (a) Welfare Definition (b) Wealth Definition (c) Scarcity Definition (a) Growth Oriented Definition W sinh ceengme activity deals with the use of goods and services for the satisfaction of human ts? (2) Consumption (0) Exchange () Production (¢) Distributionmics: An Introduction c 19 12. Who expressed the view that “Economics is neutral between ends”? (a) Robbins (0) Marshall (©) Pigou (a) Adam Smith 13. The law of scarcity: (2) Does not-apply to rich, developed countries (©) Applies only to the less developed countries (c) Implies that consumers want will be satisfied in a socialistic system (d) implies that consumer's wants will never be completely satisfied 14. Basis reason for existence of economic problem is: (2) Unlimited Wants (b) Scarcity (0) Alternative uses (a) None of the above 15. What implication(s) does resource scarcity has for the satisfaction of wants? (a) Not all wants can be satisfied (©) We will never be faced with the need to make choices (c) We must develop ways to decrease our individual wants (2) The discovery of new natural resources is necessary to increase our ability to satisfy wants 16. Which economists the emphasis of economics from wealth to welfare? (a) Adam Smith (b) Samuelson (0) Alfred Marshall (d) Lionel Robbins Ans. 1. (b);2. (a);3. (d); 4. (c);5. (a); 6. (a); 7. (d); 8. (d); 9. (c); 10. (b); 11. (a); 12. (a); 13. (d); 14. (b); 15. (a); 16. (c) TO NCERT QUESTIONS Q.1. Make a list of activities that constitute the ordinary business of life. Are these economic activities? Ans. Following are some of the activities that constitute the ordinary business of life: (i) Production process carried out by a firm. (i) Buying and selling goods and services. (ii) Treatment of a patient by a doctor. (iv) A teacher teaching in a school. (v) A teacher teaching his own son. (vi) Social services rendered by an NGO to flood victims. Out of all the activities, the activities which are undertaken to eam a living are economic activities. In the given case, (), (i), (iil) and (iv) are economic activities. However, (v) and (vi) are non-economic activities as they are inspired by sentimental reasons and are not concerned with creation of money or wealth. Q.2. You have unlimited wants and limited resources to satisfy them. Explain by giving two examples. Ans. Human wants are never ending, i.e. they can never be fully satisfied. As soon as one want is satisfied, another new want emerges. Wants of the people are unlimited and keep on multiplying and cannot be satisfied due to limited resources. Examples: (i) Suppose you have % 20,000 and you want to purchase one computer and a LCD TV. With 20,000 only in hand, you cannot have both. You can either buy computer or LCD TV.1.10 a3. Ans. a4. Ans. Statistics for Class XI i jon of sugar to satisfy increasing human wants. i) Government wants to increase production o| a Now is {a possible ‘only by reducing the production of some other goods as every economy has limited resources. : ; These examples clearly demonstrate a fundamental economic condition: ‘As our resources are limited, we are always forced to make choices between alternate commodities’. How will you choose the wants to be satisfied? Our wants are unlimited, but the resources to satisfy them are limited and have alternative uses. So, we cannot satisfy all our wants. Human wants differ in prionties, e. all wants are not of equal intensity. For every individual, some wants are more important and urgent as compared to others. As a result, we allocate our scarce resources in order of preferences to satisty some of our wants. So, we make choice between the altemative uses of the given resources. What are your reasons for studying Economics? Economics is studied because it enables us to understand different aspects of the economy. However, the main reason for study of economics can be simplified to a single word - Scarcity. We all know, human wants are more than the available resources. So, there is a need to allocate these scarce resources for the satisfaction of never ending human wants. Hence, Economics is: concemed with selection of resources under conditions of scarcity. We study Economics to analyse how people and society choose to employ scarce resources that could have alternative uses in order to produce various commodities that satisfy their wants and to distribute them for consumption among various persons and groups in society. Very Short Answer Type Questions (1 Mark each) Qt. Ans. Q.2. Ans. a3. Ans. Q.4. Ans. as. Ans. Q.6. Ans. a7. Ans. Define the term scarcity as used in Economics. Scarcity refers to the limitation of supply in relation to demand for a commodity. What is meant by Economics? Economies is the study of how people and society choose to employ scarce resources that could have alternative uses in order to produce various commodities that satisfy their wants and to distribute them for consumption among various persons and groups in society. How has Marshall defined Economics? Economies is a study of man in the ordinary business of life. it enquires how he gets his income and how he uses it. Thus, it is on the one side, the study of wealth and on the other and more important side, a part of the study of man’. Define the wealth definition of economics as given by Adam Smith. According to Adam Smith, ‘Economics is the science of wealth’. Who is a consumer? A consumer is one who consumes goods and services for the satisfaction of his wants. Whois a producer? A producer is one who produces goods and services for the generation of income. What is consumption? Itis an economic activity which deals with the use of goods and services for the satisfaction of human wants.Economics: An Introduction Q.8. Ans. Q.9. Ans. Q.10, Ans. Q.11. Ans. Q.12. Q. 13. Ans. Q.14. Ans. Q. 15. Ans. Secret cea eee eee : 441 Who is a Service holder? A Service holder is a person who work for some ot! ir an me other person and get paid for it in the form of wages or What is production? Production refers to all activities which are undertaken to ic F produce goods and fe income and satisfying human wants. : ee ee Who is a service provider? A Service provider is a person who provides some kind of services to other for a payment. For example, Lawyer, Doctor, banker, etc. What is meant by distribution? Distribution is that economic activity which studies how income generated in the process of production is distributed among the factors of production. What is meant by economic activity? . Economic activities refer to those activities, which are undertaken to earn a living. What is meant by non-economic activity? Activities which are not concemed with creation of money or wealth are known as Non-economic activities. How will you choose the wants to be satisfied? Ourwants are unlimited but the resources to satisfy them are limited and have altemative uses. We cannot satisfy ourall wants with limited and alternative uses of resources. So, we have to choose the wants which are more urgent and intensive. What is the root cause of all economic problems? Scarcity. Short Answer Type Questions (3-4 Marks each) Q.1. a2. Q.3. a4 Q.5. Q.6. Q.7. “Economics is a study of scarcity’. Discuss. Explain welfare definition of economics. Discuss briefly the definition of economics as given by Adam Smith. Briefly discuss the meaning of economic and non-economic activities. Discuss the three main economic activities. Discuss the main characteristics of scarcity definition given by Robbins. Briefly discuss the most accepted definition of economics.(2 MEANING, SCOPE AND IMPORTANCE OF STATISTICS 2.1 INTRODUCTION 2.2 MEANING OF STATISTICS 2.3. FUNCTIONS OF STATISTICS 2.4 IMPORTANCE OF STATISTICS 2.5 LIMITATIONS OF STATISTICS 2.1 INTRODUCTION The word Statistics seems to have been derived from the Latin word ‘Status’ or the Italian word 'Statista’ or the German word ‘Statistic’ or the Greek word ‘Statistique’, each of which means a political state. ‘The word ‘Statistics’ conveys different meanings to different people. Some people regard statistics as data, facts or measurements, while others believe it to be the study of figures. The views commonly held about statistics are numerous, but often incomplete, For example: 1, For a cricket fan: Statistics refers to numerical information or data relating to the runs scored by a cricketer; 2, For an Pavizonmentalist: Statistics refers to information on the quantity of pollution or other harmful gases in the atmosphere; 3, For the weather department: Statistics consists of information about minimum and maximum temperature, timings of sunrise, etc. 4, Por» chare broker: Statistics is the information on changes in share prices over a period of time; and so on. The average person perceives statistics as a column of figures, various types of graphs, tables and charts showing the changes in different types of data. «In the early years, scope of statistics was primarily limited to collection of data for determining the economic and social conditions of the people living in different parts of the country. 24for Class Xi age : a «+ But with the passage of time, the scope of statistics widened. For some time, statistics was regarded as a branch of economics, but now, it has become a full-fledged independent subject. ; © In the present times, Statistics is not only a science of the state, but it also includes, types of quantitative analysis. (Meek Cue ence. Ld lee The variables which can be expressed in numerical terms are known as quantitative variables. For example, marks of students, number of literates in country, heights of people, etc. Variables which cannot be expressed in numerical terms are known as qualitative variables. For example, honesty, beauty, intelligence, etc. Qualitative variables cannot be measured in figures as they are vague terms and we cannot make statistical analysis out of them. Qualitative expressions are not statistics unless they are assigned numerical equivalents. So, they can be ranked according to the quality of their attributes. For example, we may assign Rank No. 1 to the most intelligent, Rank 2 to the second best, and so on. The ranks may be used as numerical measurements for purposes of statistical analysis. 2.2 MEANING OF STATISTICS Itis not easy to define statistics in a precise manner. Statistics has been defined differently by different writers from time to time, emphasizing precisely the meaning, scope and limitations of the subject. Some authorities have defined Statistics as statistical data (Plural Sense), whereas others as statistical methods (Singular Sense). * In Plural Sense, it means a collection of numerical facts. * In Singular Sense, statistics deal with the collection, presentation, analysis and interpretation of the quantitative information. Plural Singular Sense ‘Sense Statistical Data Statistical Methods (Numerical information) (Methods of dealing with information) Statistics as Numerical Set of Data (Plural Sense) In the plural sense, statistics refers to aggregates of facts, affected to a marked extent by multiplicity of causes, numerically expressed, enumerated or estimated a standards of accuracy, collected ina s in relation to each other. For examp XI" class of a school. ccording to reasonable ystematic manner for predetermined purpose and placed ©, data relating to aggregate percentage of 5 Toppers ofMeaning, Scope and Importance of Statistics Statistics as used in plural sense, must possess the following characteristics: 1. Aggregates of Facts: Statistics are a 3. Crees cucu ance ts number of facts. Single and isolated figures are not statistics as such figures | Aggregates of Facts cannot be compared. For example, a | Affected by Multiplicity of Causes. single age of 30 years is not a statistics, | Statistics are Numerically Expressed but a series relating to the ages of a |__ Statistics should be collected with reasonable group of persons will be called statistics. icteric aOmECA Siatistics are collected for a pre-determined Note: A single figure, of course, can be 5 me by | purpose called statistics when itis representedas an _|__ giatiscs are collected ina Systematic Mannér average or as a sum of various observations. Statistics should be lation to each. For example, average marks (say, 75) in a Ligaiice placactin relation class, will be called statistics. Affected by multiplicity of causes: Numerical figures (data) are influenced by variety of factors. It is not an easy job to study the effects of any one factor separately by ignoring other factors. For example, Statistics of production of a crop, say rice is affected by the rainfall, fertiliser, seeds, method of cultivation, etc. It is not possible to study separately the effect of each of these forces on the production of rice. Statistics are numerically expressed: The statistical approach to a subject is numerical. So, any facts, to be called statistics, must be numerically or quantitatively expressed. «For example, Isha is taller than Mollie and Ananya, will not be called statistics. However, if the same facts are expressed in numbers (like, Isha: 154 cm; Mollie: 120 cm; Ananya: 60 cm), we will call them statistics. for example, © Qualitative characteristics like intelligence, beauty, honesty, etc, cannot be included in statistics unless they are quantified by assigning certain score as a quantitative measure of assessment. . Statistics should be collected with reasonable standard of accuracy: In statistics, data is collected with reasonable standard of accuracy. © Ahigh degree of accuracy, as observed in accountancy or mathematics, is not insisted upon in statistics, because mass of data is involved. © The process of generalisation can be achieved with a reasonable standard of accuracy only. Statistics should be enumerated or estimated according to a reasonable standard of accuracy. Enumeration involves actual counting of the heads, whereas estimation is not the actual counting, but an observation. For example, when we say that 60 students were present in the class, we are enumerating the number of students present in the class. But when a news channel says that there are 5,000 people in a rally, then the new channel is simply estimating the number of people.Statistics for Class x 24 eee Peo eee re-cletermined purpose: The purpose of collecting statistical genera tahoe eer usefulness of the data collected would be negligible. Data collected in an unsystematic manner and without complete sete of the purpose will be confusing and cannot be made on the basis of valid conclusions. Statistics are collected in a Systematic Manner: For accuracy or reliability of data, the figure: should be collected in a systematic manner. If the figures are collected in a haphazar manner, the reliability of such data will deteriorate. . Statistics should be placed in relation to each other: Collection of statistical data is generally done with the motive to compare. + Ifthe figures collected are not comparable, then they lose a large part of their significance « For the purpose of comparison, it is necessary that data must be homogeneous. * For example, it would be meaningless to compare the heights of men with heights of trees because these figures are of a heterogeneous character. Such figures do not come under the category of statistics. s » x Statistics as a Method (Singular Sense) In singular sense, the term ‘statistics’ means statistical methods, i.e. it is a method of dealing with numerical facts. Statistics in singular sense may be defined as the collection, presentation, analysis and interpretation of numerical data. The given definition covers the following important {features of statistical methods: Stages of Statistical Study Interpretation of Dati Analysis Zl of Data Organisation of Data Collection of Data 1, Collection of Data: It is the main and the first step ina statistical enquiry. The technique of collection of data depends upon the objective of the study. 2. Organisation of Data: After collection, the data is org, editing and classification. 3: Presentation of Data: After classification, the data is Presented in some suitable manner, in the form of text, table, diagram or graph. ; 4. Analysis of Data: After presentation of data, analysis is done with the help of simple mat i i i a thematical techniques. These include measures of central tendency, measures of spersion, correlation and regression, etc. anised in a proper form which involvesMeaning, Scope and Importance of Statistics 5, Interpretation of Data: It is the last step in the statistical methodology. © It involves statistical thinking, skill and experience, to derive meaning from analysed data. © The interpretation provides the final conclusions drawn from the analysed data. Plural Sense Vs Singular Sense 1. Statistics in plural sense deals with numerical information, whereas in singular sense, statistics is a body of various methods and tools. 2. Statistics in plural sense is descriptive in nature, but in singular sense, it is basically a tool of analysis. . Statistics in plural sense is often in the raw state, whereas in singular sense, it helps in processing the raw data. 2 4, Statistics in plural sense is quantitative, but in singular sense, it is an operational technique. Fae ee eae eee LL cen es es oe Empirical Analysis refers toa method in which a subjects studied on the basis of observations or experiments. In empirical analysis, knowledge is acquired as a result of actual experience. Under natural sciences such as physics, chemistry and biology this method is commonly used and relevant laws and statements can be tested and experimented in laboratories. ‘Asagainst this, economicsis a social science, wherein human behaviour isthe subject of study and empirical analysis cannot be used to study economics and other social sciences. The problems of social sciences can be effectively studied through the technique of quantitative analysis. Quantitative Analysis is an attempt to level precision’ to the facts, so that they can be easily compared. Under it, first of al, facts are expressedin the form of quantities (Ike 25, 30, 36) and then such numerical data is classified, tabulated and analysed to draw reasonable conclusions. 2.3 FUNCTIONS OF STATISTICS Statistics performs many functions useful to human beings. The broad functions performed by statistics are discussed as under: To Simplify complex facts 1. To simplify complex facts: It is very difficult ‘eo prebai oc in definite farm for an individual to understand and conclude sarals GBinparena ot ls from huge numerical data. Statistical methods ‘To facilitate planning and policy try to present the great mass of complex data formulation into simple and understandable form. “Teelp in Forecasting For example, statistical techniques like mean, Formulation and Testing of median, correlation, graphs, etc. make complex Hypothesis data intelligible and understandable in short period Jo enlarge individual knowledge and in better way. and experience2.6 __ Statistics tor Class x1 | 2, To present facts in definite form: Quantitative facts can easily be believed and trusted in comparison to abstract and qualitative facts. Statistics summarizes the generalized facts and presents them in a definite form. For example, statement like annual rate of inflation in a country is 10%, is more convincing than statement like prices are rising. » To make comparison of facts: Comparison is one of the main functions of statistics as th absolute figures convey a less concrete meaning. For comparison of data, various statistic methods like average, rates, percentages, ratio, etc. are used. For example, per capita income of developing countries may not be of much use unless we knot the per capita income of developed countries. To facilitate planning and policy formulation: On the basis of numerical data and their analysis, businessmen and administrators can plan future activities and shape their policies. ~ a To help in forecasting: As business is full of risks and uncertainties, correct forecasting is essential to reduce the uncertainties of business. Statistical tools (like interpolation, time series analysis, etc.) helps in making projections for future. > Formulation and Testing of Hypothesis: Statistics methods are extremely useful in formulating and testing hypothesis. For example, with the help of statistical techniques, we can test the hypothesis, whether a rise in the Railway fares will affect passenger traffic or not. N To enlarge individual knowledge and experience: Statistics enable people to enlarge their horizon. Itsharpens the faculty of rational thinking and reasoning, and is helpful in propounding new theories and concepts. 2.4 IMPORTANCE OF STATISTICS nn i Statistics is widely used in modern times. Initially, it was employed by the Government to collect information on public affairs. But, gradually, its use was extended to all fields, We shall discuss briefly, the importance of statistics in the following major areas: (2) Importance to the Government (b) Importance in Economics (©) Importance in Economic Planning (4) Importance in Business Importance of Statistics to Government The subject of statistics was initially used by the ancient rulers in assessment of their military | and economic strength. Gradually, its scope was enlarged to tackle other problems relating to Political activities of the economy. * In the present scenario, Government collects the largest amount of statistics for various purposes.Meaning, Scope and Importance of Statistics © The role of government has increased and requires much greater information in the form of numerical figures, to fulfill the welfare objectives in addition to the efficient running of their administration. * Popular statistical methods such as time-series analysis, index numbers, forecasting and demand analysis are extensively used in formulating economic policies. * Ina democratic country like India, various political groups are also guided by the statistical analysis regarding their popularity in the masses. So, it can be concluded that it is impossible to think about functioning of the modern government, in the absence of statistics. importance of Statistics in Economics Statistics is an indispensable tool for a proper understanding of various economic problems. « Every branch of economics takes support from statistics in order to prove various economic theories in it. « Statistics provides important guidelines for the formulation of various economic policies. © Most of the economic problems are capable of being expressed in numerical figures. For example output of agriculture, volume of exports, prices of commodities, etc. In each case, the data is affected by a multiplicity of factors. Further, it can be shown that the other conditions prescribed for statistical data are also satisfied. ‘Thus, we can say that the study of various economic problems is essentially the one of a statistical nature. Some of the uses of statistics in economics are as follows: 1, Formulation of Economic Laws:The famous ‘Law of Demand’ and the concept of ‘Elasticity of Demand’ have been developed by the Inductive method of generalisation, which is also based on statistical principles. rf Helps in understanding and solving an economic problem Statistical data and statistical methods play a vital role in understanding and solving economic problems such as poverty, unemployment, disparities in the distribution of income and wealth, etc. : Study of market struactures:Study of perfect competition, oligopoly, monopoly, etc. requires statistical comparison of market prices, cost and profits of individual firms, > Helps in establishing mathematical relation Statistical methods can also be used to estimate mathematical relation between various economic variables. For exnipledata on prices and corresponding quantities demanded ofa commodity, can be used to estimate mathematical form of demand relationship between the two variables. s Useful to studly behaviour of different economic concepts: Trend-series analysis is used to study the behaviour of prices, production and consumption of commodities, money in circulation, and bank deposits and clearings. 2 Price Analysis:Statistical surveys of prices helps in studying the theories of prices, Pricing policy and price trends as well as their relationship to the general problem of inflation.28 Statistics for Class x) Formulation of Economic Laws ‘Helps in establishing mathematical» ae ee ci He in understanding and solving Boia ea) study behaviour terer oli Sty ced Lahore ‘economic concepts ‘Study of Market Structures Price Analysis Importance of Statistics in Economic Planning Economic Planning is indispensable for achieving faster rate of growth through the best use of nation’s resources. * Atevery stage of economic planning, there is a need for figures and statistical methods * Using statistical techniques, it is possible to assess the amounts of various resources available in the economy and accordingly determine whether the specified rate of growth is sustainable or not. * Statistical analysis of data regarding an economy may reveal certain crucial areas, like increasing rate of inflation, which may require immediate attention. So, it is rather impossible to think of a situation where economic planning can be done without the use of statistical techniques. Importance of Statistics in Business Statistics is important in the business due to following reasons: 1, For Establishing a Business Unit: Before starting a business, it is necessary to know its feasibility. It involves detailed information about location, size of output, availability of inputs, taxes, size of market share, turnover, etc. Statistics Provide guidelines, which may prove to be helpful in making key decisions, . For Estimating the demand of product: After launching of the business, the next step is to estimate the present as well as the future demand of the product. Statistical methods are extremely helpful in preparing trend lines leading to reliable forecasting. For Production Planning: The businessman has to plan its production so that he is able to meet the demand of its product and incurs minimum losses on account of over or under production. Careful production planning is essential for maintaining a balance between demand and supply. For Making Quality Control: Statistical techniques (like preparation of control charts) can also be used to control the quality of the product manufactured by a firm, 5. For Making Marketing Strategy: Before a product is launched, market research team makes use of various statistical techniques (like pilot survey), to analyse data on population, purchasing power, habits of the consumers, competitors, pricing, etc. Such studies reveal the possible market potential for the product. Accounts writing and auditing: Every business firm keeps accounts of its revenue and expenditure. * For taking certain decisions in a business, these accounts are required to be summarized ina statistical way. x ~ » >Meaning, Scope and Importance of Statistics 29 « This may consist of the calculation of typical measures like average production per unit of labour, average production per hour, average rate of return on investment, etc. « Statistical methods may also be helpful in generalizing relationships between two or more of such variables. ae eau Ue) i y ¥ y v y For Establishing For Estimating For For Making For Making ‘Accounts aBusiness Demandofthe Production Quality Marketing Writing and Unit Product Planning Control Strategy Auditing 2.5 LIMITATIONS OF STATISTICS __ The main limitations of statistics are: 1. Statistics does not study qualitative phenomena: Statistics can be applied in studying only those | (77 problems which can be stated and expressed | statistics does not study qualitative quantitatively. phenomena itati isti |__ Statistics does not deal with « Qualitative characteristics such as honesty, individuals poverty, welfare, beauty, health, ete. cannot | sass can be Misused directly be measured quantitatively. ae A |__ Statistical results are true only on . Asa result, qualitative characteristics are not average suitable for statistical analysis. |— Statistical laws are not exact 2 Statistics does not deal with individuals Statistics | Gil Ei sre caa ihe Be deals only with aggregates of facts and no importance 7 + ee: |__ Statistical data should be uniform is attached to individual items. Poy example, marks of and homogeneous one student of a class does not constitute statistics, but the average marks have statistical relevance. 3. Statistics can be Misused: Statistics can be misused by ignorant or wrongly motivated persons. Any person can misuse statistics and draw any type of conclusion he likes. Statistical methods are no substitute for common sense! 7 There is an interesting story which will justify this viewpoint: ) Once a family of four persons (husband, wife and two children) set out to cross a river. The father knew the average depth of the river. So, he calculated the average height of his family members. Since the average height of his family members was greater than the average depth | of the river, he thought they could cross safely. Consequently some members of the family (children) drowned while crossing the river. Inthe given case, the fault is not with the statistical method of calculating averages, but with the misuse of average. The Statistics has been be misused by the father as he has drawn wrong | conclusions. So, it is rightly said “Statistical methods are no substitute for common sense”. —Staistis for Class x) 4. Statistical results are true only on average: Statistics, as a science, is not as accurate as ‘many other sciences are. Natural sciences are exact as their results are universally true, However, statistical laws are not exact. For example, if average number of thefts in a town is 3 per week, it does not mean that if3 thefts have taken place on the first day of the week, there will be no more thefts in that week. See! ‘ 5. Statistical laws are not exact: As statistical laws are probabilistic in nature, inferences based on them are only approximate and not exact like inferences based on mathematical or scientific laws. : = 6. Only Experts can make the Best Possible use of Statistics: The techniques of Statistics are not so simple to be used by any layman. These techniques can only be used by the experts as they are complicated in nature. 7. Statistical data should be uniform and homogeneous: It is essential that data must be uniform and homogeneous. Heterogeneous data are not comparable.For example, it would be of no use to compare the heights of trees with the heights of men because these data are of heterogeneous nature. Distrust of Statistics Distrust of statistics means lack of confidence in statistical methods and statements. Inspite of the services provided by statistics, considerable distrust exist in the minds of people with regard to its reliability and usefulness. « Thereason for this distrust is improper use of statistical tools by unscrupulous, irresponsible, inexperienced and dishonest persons. The ‘Distrust of Statistics’ refers tolack of confidence in the statistical methods and statements’. Undoubtedly, statistical tools have yielded important results in almost every field knowledge. Statistics does not prove disprove a thing. Itis merely a tool. Causes of Distrust The distrust of statistics occurs due to following reasons: i) Incomplete Knowledge of Statistical Methods; (ii) Unrealistic Assumptions; (i) Deliberate Misuse of Statistics; (iv) Ignoring Limitations of Statistics; (v) Wrong Application of Statistical Methods. Removal of Distrust ‘To overcome the problems of distrust, following precautions should be taken: (i) Limitations of Statistics should be kept in mind; (ii) Only Experts should make use of the Statistics; (iii) Data should be used after a careful enquiry; (iv) Great care and caution should be exercised while using statistics; (v) The user should be impartial. Conclusion From the above observations, it has become clear that fault does not lie with statistics. These techniques are innocent techniques which may be used for the betterment of the society. A knife may be used in cutting one’s throat instead of Cutting fruits and vegetables. Fault is not with knife but with a person who handles it. ‘Similarly, if the statistician misuses data, then the fault purely lies on the statistician and not on the data.Meaning, Scope and Importance of Statistics EEE EEE CEe Ha : 211 [REVISION | OF KEY POINTS Statistics refers to aggregates of facts, affected to a marked extent by numerically expressed, enumerated or estimated according to reasonable Collected in a systematic manner for predetermined purpose and placed in « Statistics in Plural Sense: multiplicity of causes, standards of accuracy, relation to each other. » Characteristics of Statistics in Plural Sense: following characteristics: ()) Aggregates of facts (i) Affected by multiplicity of causes (iil) Statistics are numerically expressed (v) Statistics should be collected with reasonable standard of accuracy (v) Statistics are collected for a pre-determined purpose (v) Statistics are collected in a systematic manner (vil) Statistics should be placed in relation to each other Statistics as used in plural senso, must possess the Statistics in Singular Sense may be defined as the collection, presentation, analysis and interpretation of numerical data. Features of Statistics in Singular Sense: Statistics as used in singular sense, must possess the following features: () Collection of Data (il). Organisation of Data (iil) Presentation of Data (iv) Analysis of Data (v) Interpretation of Data * Functions of Statistics: The broad functions performed by statistics are: () To simplify complex facts (i) To present facts in definite form (il) To make comparison of facts (\v) To facilitate planning and policy formulation () To help in forecasting (v)) Formulation and Testing of Hypothesis (vil) To enlarge individual knowledge and experience » Importance of Statistics to Governmer jovernment collects largest amount of statistics to fulfill the welfare objectives in addition to the efficient running of their administration. > Time-Series Analysis, Index Numbers, Forecasting and Demand Analysis are extensively used in formulating economic polici~ > Various political groups also use statistical analysis to popularise themselves in the masses. Importance of Statistics in Economics: Statistics is an indispensable tool for proper understanding Of various economic problems. Some of the uses of statistics in economics are: ()) Formulation of Economic Laws. (ii) Helps in understanding and solving an economic problem.Statistics for Class XI 2.42 ieee seuesLeleesenene sun (ili) Study of market structures. (iv) Helps in establishing mathematical relation. (v) Useful to study behaviour of different economic concepts. (vi) Price Analysis. » Importance of Statistics in Economic Planning: At every stage of economic planning, there is aneed for figures and statistical methods. Using statistical techniques, it is possible to assess the amounts of various resources available in the economy. « Importance of Statistics in Business: Statistics is important in the business due to following reasons: ()) For establishing a business unit. (il) For estimating the demand of product. (ill). For production planning. (iv). For making quality control. (v) For making marketing strategy. (vi) Accounts writing and auditing. » Limitations of Statistics: The main limitations of statistics are: (i). Statistics does not study qualitative phenomena. (ii) Statistics does not deal with individuals. (ili) Statistics can be misused. (iv) Statistical results are true only on average. (v) Statistical laws are not exact. (vi) Only Experts can make the best possible use of statistics. (vil) Statistical data should be uniform and homogeneous. * Distrust of Statistics means lack of confidence in statistical methods and statements. [HOTS] REMEMBERING - UNDERSTANDING - APPLICATION BASED QUESTIONS Q. 1. ‘Statistics is full of advantages and does not suffer from a single limitation. Do you agree? Ans. No, | do not agree with the given statement. Statistics suffers from following limitations: (i) Statistics does not study qualitative phenomena. (ii) Statistics does not deal with individuals. (ii) Statistics can be misused. (iv) Statistical results are true only on average. (v) Statistical laws are not exact. (vi) Only Experts can make the best possible use of statistics. (vii) Statistical data should be uniform and homogeneous. | Q. 2. What do you mean by ‘Distrust of Statistics"? Ans. Distrust of statistics means lack of confidence in statistical methods and statements. Inspite of the services provided by statistics, considerable distrust exist in the minds of people with regard to its reliability and usefulness. The reason for this distrust is improper use of statistical tools by unscrupulous, irresponsible, inexperienced and dishonest persons.Meaning. Scope and Importance of Statistics 213 @.3. Which of the following statements categorise Statistics in ‘Plural Sense’ and ‘Singular Sense’: (a) Statistics refers to aggregates of facts. (b) Statistics involves presentation of data. (c) Statistics includes interpretation of data. (a) Statistics is collected for a pre-determined purpose. (e) Statistics involves collection and organisation of data. ()). Statistics should be collected with reasonable standard of accuracy. ‘Ans. Statistics in Plural Sense: (a), (d), (f); Statistics in Singular Sense: (b), (c), (e). Q.4. ‘Statistics is affected by multiplicity of causes. Explain this with the help of an example. ‘Ans, Numerical data given in statistics is influenced by variety of factors. It is not an easy job to study the cffects of any one factor separately by ignoring other factors. For example, statistics of production of a crop, say rice is affected by the rainfall, ertiizer, seeds, method of cultivation, etc. Its not possible to study separately the effect of each of these forces on the production of rice. Q.5. State whether the following statements are True or False: (i) Any single numerical figure is statistics. (ii) Statistics makes the complicated data simple and intelligible. (ili) In singular sense, Statistics means a collection of numerical facts. Ans. True: (ii); False: (i), (i). [MULTIPLE | CHOICE QUESTIONS (MCQs) 4. The word ‘statistics’ is used as: (a) Singular (c) Singular and Plural both 2. The proper use of statistics can be made by: (2) Cheats (c) Experts 3. Statistics as a singular noun means: (a) Statistical data (c) Induotive statistics 4, Statistics is the science of analysing: (a) Qualitative data (c) Any kind of data 5. Statistics as a plural noun indicates: (a) Statistical methods (0) Statistical data 6. The statistics is concerned with: (a) Aggregate of organised facts (0) Aggregate of useless facts 7. Distrust of statistics is due to: (@) Misuse of statistics (c) Scope of statistics is limited (b) Plural (a) None (b) Everyone (a) Common Man (0) Statistical methods (a) Descriptive statistics (b) Quantitative data (d) Both (a) and (b) (b) Descriptive statistics (d) Inductive statistics (b) Aggregate of disorganised facts (a) Aggregate of unrelated facts (b) Insufficient statistical methods (qd) Limitations of statistics eeStatistics for Class x} 8. Statistics in singular sense includes: (2) Collection of data (b) Organisation of data (0) Presentation of data () Allof the above 9. Statistics is defined in terms of numerical data in the: (2) Singular Sense (b) Plural Sense (c)_ Either (a) or (b) (d) Both (a) and (b) Ans. 1. (c); 2. (c); 3. (b); 4. (b); 5. (c); 6. (a); 7. (a); 8. (d); 9. (b) TO NCERT QUESTIONS) Q. 1. Mark the following statements as true or false. (i) Statistics can only deal with quantitative data. (ii) Statistics solves economic problems. (ii) Statistics is of no use to Economics without data. Ans. (i) False. Statistics can deals with both quantitative data as well as qualitative data. However, qualitative expressions are not statistics unless they are assigned numerical equivalents. Once, they can be ranked according to the quality of their attributes, then such ranks may be used as numerical ‘measurements for purposes of statistical analysis, (i) True. Statistics is an indispensable tool for a proper understanding of various economic problems. Every branch of economics takes support from statistics in order to prove various economic theories init. (iii) True. At every stage of economic planning, there is a need for figures and statistical methods. So, Statistics is of no use to Economics without data. Q. 2. ‘The Government and policy makers use statistical data to formulate suitable policies of economic development’ llustrate with two examples. ‘Ans. The governmentand policy makers require greater information in the form of numerical figures, to fulfill the welfare objectives. Popular statistical methods such as time-series analysis, index numbers, forecasting and demand analysis are extensively used in formulating economic policies. Examples: (i) While preparing and implementing new poverty alleviation programmes, Government makes use of various statistical data to determine the pros and cons of earlier poverty alleviation programmes. (ii) While framing budget, Government and policy makers make extensive use of economic survey and data of previous years, to formulate budget for the coming fiscal year. So, it can be concluded that itis impossible to think about functioning of the modern government, in the absence of statistics. Q. 3. Statistical methods are no substitute for common sense. Comment. Ans. There is an interesting story which will justify this viewpoint: Once a family of four persons (husband, wife and two children) set out to cross a river. The father knew the average depth of the river. So, he calculated the average height of his family members. Since the average height of his family members was greater than the average depth of the river, he thought they could cross safely. Consequently some members of the family (children) drowned while crossing the river. : ; In the given case, the fault is not with the statistical method of ‘calculating averages, but bail the eae of average. The Statistics has been be misused by the father as he has drawn wrong conclusions. So, is rightly said “Statistical methods are no substitute for common sense".Meaning, Scope and Importance of Statistics 7 ___2a5 ' very Short Answer Type Questions (1 Mark each) Qt. Ans. a2. Ans. Q.3. Ans. a4. Ans a as. Ans. a6. Ans. Q.7. Ans. a8. Ans. a9. Ans. Q.10. Ans. Qi. Ans, Q.12. Ans, Q.13. Ans, Q.14, Ans, Short Qt. Q2. a3, . What is meant by statistical tools? Define Statistics in plural form. ‘i hes Inplural sense, statistics refers to the numerical description of the quantitative aspects of a phenomenon. Briefly explain the meaning of statistics in singular sense. In singular sense, the term ‘statistics' means statistical methods, facts. : . itis a method of dealing with numerical What is meant by distrust of statistics? Distrust of statistics means lack of confidence in statistical methods and statements. What is Empirical Analysis? Empirical Analysis refers to a method in which a subject is studied on the basis of observations or experiments. Mention two limitations of statistics. (i) Statistics does not study qualitative phenomena; (ii) Statistics does not deal with individuals. What is the meaning of Quantitative Analysis? Quantitative Analysis is the method by which a subject is studied on the basis of data relating to its various aspects. Mention the type of facts not studied by statistics. Qualitative facts. Give two examples of quantitative data. (i) Marks of students; (ii) Age in years. Mention two examples of qualitative data. (i) Honesty; (ii) Beauty. What are the two senses in which the word Statistics is used? () Plural Sense; (ii) Singular Sense. Mention two important functions of statistics. / (i) To Simplify Complex Facts; (i) To present facts in definite form. Why the problem of distrust of Statistics arises? . The problem of distrust of Statistics arises because of its misuse, Would it be termed as statistics if itis said that population of a country is 120 crores? No. Statistical tools are those by means of which statistical methods are applied. Answer Type Questions (3-4 Marks each) Define statistics in plural sense. Point out its characteristics. i istical Define statistics as a singular noun. Discuss various statistic : tatistics in plural sense’. Distinguish between ‘statistics in singular sense” and'st methods involved in it.a4. Qs. Q.6. a7. a as. Statisti¢s for Class x) How is statistics important for studying economics? Explain the limitations of statistics. Explain any three functions of statistics. Discuss the importance of statistics in economic planning. Distinguish between ‘quantitative’ and ‘qualitative’ data. Give two examples of both. Categorise the following into quantitative data and qualitative data: (i) Marks of students. (i) Expenditure of family; (jii) Honesty of employees; (iv) Wages of workers; (v) Intelligence of ‘students; (vi) Age of People. ). Discuss the importance of statistics in Business.