Business

Statistics
-Judith Lara J
2nd Year: B.com LLB - A
INTRODUCTION TO
STATISTICS
Introduction
The word ‘statistics’ has been derive from the Latin
word “Status” or Italian word “Statista” or German
word “Statistika”. Each of these words means
Political State. Initially, Statistics was used to collect
the information of the people of the state about their
income, health, literacy, wealth etc. But now a days,
Statistics has become an important subject having
useful application in various fields in day to day life.
As a plural noun it means - numerical facts;
As a singular noun it means - scientific method
Definition
According to Horace Secrist statistics is defined as "Aggregates of
facts affected to a marked extent by multiplicity of causes,
numerically expressed, enumerated or estimated according to
reasonable standards of accuracy, collected in systematic manner
for a predetermined purpose and placed in relation to each other."

According to Croxton and Cowden, "Statistics may be defined as the

collection, presentation, analysis and interpretation of numerical
data."
Scope
Statistics is pervasive in various aspects of life.
It has become indispensable for drawing conclusions and decision-
making.
The use of statistics enhances precision in knowledge.
Statistics is widely applied in diverse fields of study.
Statistical methods enable drawing conclusions from a variety of
data.
Relationships between different subject aspects can be studied using
statistics.
It was initially used in state affairs but has expanded to numerous
fields. This includes agriculture, biology, business, chemistry,
communications, economics, education, electronics, medicine,
physics, psychology, sociology, and more.
Importance
Precision: Statistics improves precision in drawing conclusions and making
decisions.
Decision-Making Tool: It is an indispensable tool for decision-making in various
fields.
Broad Applicability and application : Used in diverse fields and subjects like
like agriculture, biology, business, economics, maths, physics, etc.
Relationship Analysis: Enables studying relationships between different
subject aspects.
Data Interpretation: Facilitates drawing conclusions from a vast variety of data.
Predicts Future: it helps in forecasting the future by proving the unknown from
the known data.
Limitations
25

Statistics is not concerned with individual observations.

Statistics does not analyse qualitative phenomenon.
Stastical generalisation is true only on average. 20

Improper use of statistics .

15

Functions 10

It simplifies complex data.

It collects data in a systematic form. 5
It compares one set of data with another.
It indicates future tendencies and trends.
It guides the management in planning. 0
Item 1 Item 2 Item 3 Item 4 Item 5
Thank You