Meaning of Statistics

The term statistics , was first used by 4German 0

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scientist Gottfried Achenwall in 1749. 1 8 8 He is
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known as father of statistics. s 9
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Statistics is defined Ec in two Sharm senses
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● Plural sense – Statistical Data
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Digitally signed by

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Sonika Sharma

n ik or Numerical Facts DN: cn=Sonika

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Sharma, o, ou,

S email=sharmasonika
0007@gmail.com,
c=IN
Date: 2020.04.08
● Singular sense – Statistical Methods 17:30:02 +05'30'

or Statistical Techniques
Gottfried Achenwall
(Father of Statistics)
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Quantitative Data – The variables which can be
expressed in numerical terms are known as
quantitative variables.
● For eg. Daily temperatures, heights and weights

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of individuals. 8 8 1
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● Their values can be expressed numerically.
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Qualitative Data – The variables Ec which cannot be
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expressed in numerical P terms are known as
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qualitative variables. m
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● For eg. Honesty
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n i k a , beauty, intelligence etc.
● We may rank
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S them according to the quality.
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 Characteristics of Statistics

1.Statistics are Aggregates of facts- A single

fact cannot be called statistics, even though 0
the
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fact is numerically expressed. 8 8 1
● If it is not placed in relation to any 1 1
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statistics. o m
● Statistics should be aggregates c on of facts and not
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one fact only. PG
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● For eg. a single figure
a rm of 60 marks is not
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statistics but naikaseries relating to the marks of a
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group of students will be called statistics.
2. Numerically Expressed
● Statistics are expressed in terms of numbers.

● Qualitative aspects like 'small' , 'big' ,0 'rich' ,

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'poor' ; etc. are not called statistics.
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● For eg. Parul is taller than Purva
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called statistics . c on
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However , if it is hstated m the height of Parul is 5 ft.
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6 inches and nthat
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these will beSo called statistics.
3. Enumerated or Estimated
● Numerical facts or statistical data could be

gathered or collected either by actual counting

(enumerated) or by estimation. 0
● When the scope of enquiry is very 1 0 4
8 8 large data are
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estimated . 97
● When the number of units are ics less, these are
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actually can be countedE(enumerated) co .
● For eg – If the number
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40 then we can use m
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people are watching
n i k a a cricket match between
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India and Pakistan
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estimation .
4. Reasonable Degree of Accuracy
● Statistical data which are collected to draw

conclusion from them.

● It is necessary that they should be reasonably

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accurate. 8 8 1
● Lack of accuracy can cause misleading 1 1
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conclusions. o m
● Data may be enumerated c onor estimated without
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affecting their reasonable
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5. Statistics should
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Systematic Manner-
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collected systematically in a planned way. Data
collected in haphazard manner would lead to
misleading conclusions.
6. Collected for a Predetermined Purpose
● Before collecting the data, the purpose of their

collection should be well defined and specified ,

otherwise it would not serve any purpose 0
rather it
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would lead to wrong conclusion. 88 1
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● For eg- If we are to collect ostatistics
m of industrial
output, then we must decide c on the regions,
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commodities and periods PG for which they are
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needed. r m
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7. Affected by Multiplicity of Causes
There are several factors or causes which affect
statistics. For eg – data relating to number of
deaths in a town are statistics . There 0are several
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causes of deaths like accident, disease, 8 8 1 hunger,
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heat, cold etc. 97
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8. Placed in Relation toEEach co Other
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If numerical facts are to P be statistics , they should
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be comparable. Comparisons m can be made only if
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the data are homogeneous.
n i k a It would be
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meaninglessSto compare the heights of the
students with the marks obtained by them.
Statistics in Plural sense - In plural sense,
statistics refers to aggregates of facts,affected by
multiplicity of causes, numerically expressed,
enumerated or estimated according to0reasonble
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standard of accuracy, collected in a88 systematic 1
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manner for predetermined purpose 97 and placed in
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relation to each other. o m
Statistics in Singular sense c on – In singular
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sense,statistics may be PG defined as the
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collection ,organization, m presentation, analysis
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and interpretation
n i k a of numerical data.
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 Limitations of statistics

1-Statistics study only quantitative facts

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2-Statistics does not deal with individuals
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3-Statistical data should be ihomogeneous
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4-Statistical results are G T true only on an
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average – for example r m
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income has been a
Sincreasing at a rate of 2 percent
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per annum for So last five years, it does not mean
that national income has been increasing at this
rate every year. Rate of increase in national
income in any particular year maybe more than or
less than 2 %
5- Statistical laws are not perfectly accurate-
Statistical laws are not exact as those of
mathematics, physics etc. results based on them
are only approximate and not exact. 0
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6- Use by experts- The scientific 17 method of
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statistics can be understoodomand used by those
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only who have special knowledge of statistical
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methods. PG
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7- Misuse of statistics-
n i k a statistical figures can
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easily manipulated
S for selfish motive. Statistics
may prove true what exactly is not true.
 Functions of Statistics

1- To simplify complex facts- it is very difficult

for an individual to understand and conclude 0
from
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huge numerical data. Statistical methods 8 8 1 try to
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present the great mass of complex 97 data into
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simple and understandable oform.
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2- To present facts inPGdefinite form- Quantitative
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facts can be easilyharbe believed and trusted in
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comparison tonqualitative
ik a facts. For example
statement likeSo annual rate of inflation in a country
is 10%, is more convincing than statement like
prices are rising.
3- To make comparison of facts-

Comparison is one of the main function of

statistics as the absolute figures convey 0
a less
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concrete meaning for example per8capita 8 1 income
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of developing countries may not97be of much used
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unless we know the per capita o m income of
developed countries. c on
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4-To facilitate planning m and policy formulation-
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on the basis ofniknumerical
a data and there analysis,
businessmenSocan plan future activities and shape
their policies
5- To help in forecasting- As business is full of
risks and uncertainties, correct forecasting is
essential to reduce the uncertainties of business
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Importance of Statistics 8 8 1
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1- Importance to the government o m -
● In the present scenerio government c on collects the
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largest amount of statistics PG for various purposes.
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● The role of government m has increased and
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required much n i k agreater information in the form of
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numerical figures
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● Popular statistical methods such as index
numbers, forecasting are used in formulating
economic policies.
Examples -
● While preparing and implementing new poverty

alleviation programes, government makes use of

various statistical data to determine the 0
pros and
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cons of earlier poverty alleviation 8programs 8 1
● While framing budget, government 1 1
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makers make extensive use o m of economic survey
and data of previous years c on to formulate budget
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for the coming years.PG
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2- Importance n i k a of Statistics in Economic
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planning S
● Economic planning is important for achieving

faster rate of growth through the best use of

nation's resources
● At every stage of economic planning there is a
need for figures and statistical methods.
● Using statistical techniques, it is possible to

assess the amount of various resources

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available in the economy 8 8 1
● Statistical analysis of data regarding 1 1
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may reveal certain crucial areas o m like increasing
rate of inflation, which may c on require immediate
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attention PG
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3- Importance n i k a of statistics in Business
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● For establishing
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size of output, availability of inputs, taxes etc
● For estimating the demand of the product

● For accounts writing and auditing.

4- Importance of Statistics in Economics
● Every branch of economics takes support from

statistics in order to prove various economic

theories in it. 0
● Statistics provides important guidelines 0 4
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formulation of various economic 97 policies
● Helps in understanding and solving ics economic
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problems like employment c on poverty etc
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