BBA - 3 [INTRODUCTION TO STATISTICS]

History of Statistics:

Latin word Status

STATISTICS
Italian word Statista

“STATUS” and “STATISTA”, both these words mean a Political state.

 Shakespeare used a word “STATIST” in his drama Hamlet (1602).
 In 1749, Gottfried Achenwall, used the word “STATISTIK” in one of his lecture to
mean the political science of several countries.
 In 1771, W. Hooper used the word “STATISTICS” in his translation of “Elements of
Universal Erudition”by Boron J. F. von Biefeld.

Definition of Statistics:
 A branch of mathematics that deals with the collection, presentation, analysis and
interpretation of the masses of numerical data.
 Statistics refers to the science comprising methods which are used in the collection,
presentation, analysis and interpretation of numerical data.

Meanings of the word Statistics:

The word statistics used to express the following three statements:

 Plural Sense: Statistics are aggregates of facts which are expressed in numerical form.
e.g. Good, poor, many etc.
 Singular Sense: In singular sense, Statistics refers to the science comprising methods
which are used in the collection, presentation, analysis and interpretation of numerical
data.
 Plural of the word Statistic: Statistics is a sample measure used to estimate statistical
characteristics of the population. e.g. sample mean, sample standard deviation, sample
proportion etc.

Branches of Statistics: (Kinds of Statistics & Types of Statistics)

There are the 2 branches of statistics.
1. Descriptive Statistics (Deductive Statistics)
2. Inferential Statistics (Inductive Statistics)

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 BBA - 3 [INTRODUCTION TO STATISTICS]

1. Descriptive Statistics:

 It deals with collection of data, its presentation in various forms (such as Tables, Graphs
and Diagrams) and finding averages and other measures which would describe the data.
 The phase of statistics that is concerned with the description and analysis of sample or
population data is called descriptive statistics.

2. Inferential Statistics:

 It deals with techniques used for analysis of data, making the estimates and drawing
conclusions regarding population parameter using the sample data.
 The phase of statistics that is concerned with the procedures and methodology for
obtaining valid conclusions is called inferential statistics.

Importance of Statistics in Business:

Statistics plays a vital role in every business of human activity. Some points are as follows:

 Statistical Analysis:

Statistical analysis allows organizations to quantify an organization’s performance and identify

patterns. This enables a business’s managers to take informed decisions based on facts rather
than intuitions.

 Performance Management:

Another key advantage of business statistics is that it helps companies in performance

management. For instance, it enables managers to know whether the employees are meeting their
productivity requirements. This, in turn, allows the managers to take the required actions to
support the employees performing below the level of expectation.

 Market Prediction:

Businesses also use statistics to predict whether the market will react positively or negatively to a
new offering. This is vital before investing in the development of a new product.

 Advertisement:

This method helps identify a relationship between multiple variables and their impact on each
other, for example, the impact of advertising on sales.

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