Introduction

of Statistics

Chapter-01
 Chapter Summery

Definition Of Statistics

Nature and Scope Of Statistics

Functions & Limitation Of Statistics

Use of Statistics in business.

Definition of Statistics:
Statistics is defined as the science of collection, organization,
presentation, analysis and interpretation of the numerical data.
A few definitions are analytically examined below:
According to R.A. Fisher:
The science of statistics is essentially a branch of applied mathematics and may be
regarded as mathematics applied to observational data.
According to A.L Bowley:
All statistics are numerical statements of facts in any department of enquiry in relation
to each other.
Objectives of Statistics/ Functions of
Statistics:
To present facts in a definite form.

To simplify complex data so as to make

them understandable.

Statistics is a technique of marking comparison.

Statistics enlarges individual experience.

Objectives of Statistics/ Functions of
Statistics:
Statistics provides guidance in the formulation of
business policies.

Statistics enables measurement of the magnitude of a

phenomenon.

Statistics help in establishing cause and effect

relationships .
Importance and Scope of Statistics:

Statistics in state
Statistics in economics

Statistics in trades and commerce

Statistics in medical science

Importance and Scope of Statistics:

Statistics in demography

Statistics in weather forecasting

Statistics in insurance companies

Statistics in law-reformation and human rights

Statistics in science
Limitations of Statistics:

Statistics does not deal with individual measurements

Statistics deals only with quantitative characteristics

Statistical result are true only on an average

Statistics is only one of the methods of studying a

problem
Limitations of Statistics:

Statistics does not reveal the entire story

Statistics data should be uniform and homogeneous

Statistics is liable to be misused

Stages in statistical investigation:

Collection of data

Organization of data

Presentation of data

Analysis of data

Interpretation of data
Various Divisions of
Statistics:
Statistics is subdivided into 3 parts such as

Statistical theory

Statistical method

Applied Statistics
Definition of business
statistics:

Business statistics is a science which use to make business

decisions under uncertainties based on some numerical figure
and measurable scale.
Importance of Statistics in Business
:
Determining business spot
Stocking commodity

Estimating production rate and its state

Financial analysis in business

Measuring seasonal variation

Definitions and basic concepts:

Products marketing

Estimating worker’s skill

Business forecasting

Solving business related problems

Statistics in other business

Characteristics or Properties of
Statistics:
Statistics are aggregate of interrelated information

Statistics are numerically expressed

Statistics are affected by various causes

Statistics are the resultant of interrelated investigation

Characteristics or Properties of
Statistics:
Statistics are comparable and homogenous

Statistics are enumerated or estimated according to reasonable

standards of accuracy

Statistics obtained in a well organized manner