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CHAPTERONE
1I NTRODUCTI ONANDORI GIN
Thecol lectionofnumer icaldat aonv ariesaspect sofl ifeisal mostasol das
civi
lizationi tsel
f.Pr of.P. C.Mahal anobi ssai d,''
from t i
mei mmemor ialmen
musthav ebeencomput ingi nformat ionf orpeaceandwar .Statisticsi nt hi
s
sensei sasol dasst atecr aft.'
'
Init
iallyt heconceptofst atisti
csst art edwi thdat acol l
ect i
onandsomet hing
li
ke' pol i
ticalarithmet ic'
..ki ngsusedt ocol lectt heinf ormat i
onaboutt he
peopl ei nt heirstate,i.e.,t heyusedt ocol lectthedat ar egardingcondi t
ions
underwhi chpeopl el i
veandwor k,t hei rheal th,theirincomesandweal t
h.So
thissubj ectdev elopedas' aki ng'ssubj ect 'or'asasci enceofki ngs' .Kings
alsousedt ocol l
ectdat asuchaspopul ation,manpower ,weal thint hef orm
ofland, buildi
ngsandot herasset st oknowt hecondi ti
onoft heirst ate.
Int he moder n wor ld of comput er s and i nfor mation t echnol ogy ,t he
impor tance ofst ati
stics i sv ery wel lr ecogni zed by al lthe di scipli
nes.
Statisticshasor i
ginatedasasci enceofst atehoodandf oundappl i
cations
slowl yandst eadilyinAgr i
culture,Economi cs,Commer ce,Biology ,Medi cine,
Indust r
y ,planning, educat ionandsoon.

1.1DEFI NI TIONOFSTATI STICS

Stati
sticsisdef ineddi ff
erent l
ybydi fferentaut horsov eraper iodoft ime.
Definit
ionsbyA. L.Bowl ey:St ati
sticsar enumer i
calstatementoff actsinany
depar t
mentofenqui rypl aced inr el ati
on to each ot her .- A. L.Bowl ey
Stati
sticsmaybecal l
edt hesci enceofcount ingi noneoft hedepar t
ments
duet oBowl ey ,obv iouslyt hisisani ncompl etedef i
nitionasi ttakesinto
accountonl yt heaspectofcol lectionandi gnor esot heraspect ssuchas
analysis,present ati
onandi nt
erpret ation.Bowl eygi vesanot herdef i
niti
onfor
stat
istics,whi ch st ates‘st ati
sticsmayber ightlycalled t heschemeof
averages’.Thi sdef i
niti
oni sal soi ncompl ete,asav eragespl ayani mpor t
ant
rolei n underst anding and compar ing dat a and st ati
st i
cs pr ovi
de mor e
measur es.
Definit
ionbyCr oxtonandCowden:St atist
icsmaybedef inedast hescience
of col lect
ion,or ganizing,pr esent ation,anal ysis and i nterpretati
on of
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numer i
caldat af rom t hel ogi calanal ysis.I ti scl eart hatt hedef init
ionof
statist i
csbyCr ox tonandCowdeni st hemostsci entif
icandr ealisti
cone.
Accor dingt ot hisdef initi
ont her ear ef ivest ages:
1.Col l
ect ionofdat a
2.Or gani zat i
on(cl assi ficat ion)ofdat a
3.Pr esent at i
onofdat a
4.Anal y sisofdat a
5.I nterpr etationofdat a
1Col lect ionofDat a:i st hef irstst epi nast atisticali nvestigat ionandf or ms
thebackboneoft hei nv est i
gat ion( ori nqui ry).Car efulplanni ngi sessent ial
bef orecol lect i
ngt hedat a.Dat ashoul dbecol lect edf oraspeci f
icandwel l
def i
nedpur posev er ycar ef ully .Ther ear edi fferentmet hodsofcol lecti
onof
dat asuchascensus, sampl i
ng, pr imar y,secondar y,etc.,andt hei nv esti
gat or
shoul dmakeuseofcor rectmet hod.
2Or gani zat ionofdat a:I fani nv est i
gat orhascol lect eddat at hr oughasur vey,
iti s necessar yt o edi tt hese dat ai n or dert o correctany appar ent
inconsi st enci es,ambi gui t
ies,andr ecor dinger r orsorf ort hatmat terany
mi stakest hatcanent eri nt ot heact ualcomput ations.Todr aw meani ngf ul
concl usi ons,t hepr operor gani zat i
onoft hedat ai sessent ial.Obser v eddat a,
withoutpr operor gani zationwi llleadt of allaciousconcl usion.
3 Pr esent at ionofdat a:Theor gani zeddat acannow bepr esent edi na
suitabl e,conci se f or m f orf urtheranal ysis.The col l
ected dat a may be
present edi nt hef or m oft abul arordi agr ammat icorgr aphi cf orm.Or derly
present ationofdat af acilitatesst at isticalanal ysis.Dat apr esent edi nt he
form of gr aph,di agr ams,i s easi ly under st andabl e and hav e gr eat er
memor izingef fectandhencef aci lit
at esef f
icientcompar i
son.
4Anal ysi sofdat a:Thedat apr esent edshoul dbecar ef ull
yanal ysedf or
maki ng i nfer encef rom t hepr esent eddat asuchasmeasur esofcent ral
tendenci es,di sper sion,cor relat ion,r egr essi onet c.Themai nobj ect i
veof
anal ysisi st opr epar edat ai nsuchaf ashi onsoast oar riv
eatcer t
aindef inite
concl usi on.

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5Inter pr
etat
ionofdat a:Interpretat
ionordr awingv al
idconcl
usionsisthe
l
astst ageinstati
sti
calinvesti
gation.Theinterpr
etati
onofanalyseddataisa
dif
fi
cul ttask and needs a high degr ee ofskill
s and experi
ence.Ifthe
analyseddataar enotinterpretedcar ef
ull
y,thebasicobject
iveofinquir
yis
l
iabletobedef eat
ed.

1.
2TYPESOFSTATI STICS
Ther
earetwomaj ordiv
isi
onsofst
ati
sti
cssuchasdescr
ipt
ivest
ati
sti
csand
i
nfer
ent
ialst
ati
sti
cs.

1.2.1 Descr iptive st atist

ics: deal s wi t
h col l
ecting,summar izi
ng,and
simpl if
y i
ng dat a,whi ch ar eot her wisequi teunwi el dyand v olumi nous.I t
seekst oachi ev et hi
si namannert hatmeani ngfulconcl usionscanber eadi ly
drawnf rom t hedat a.Descr i
ptivest atisticsmayt husbeseenascompr i
sing
met hodsofbr ingingoutandhi ghlightingt hel at
entchar acteristicspr esenti n
asetofnumer i
caldat a.Itisnotonl yf aci li
tat esanunder standi ngoft hedat a
and sy stemat i
cr epor t
ing t hereofi n a manner ;and al so makes t hem
amenabl etof urtherdi scussion, anal ysis, andi nterpretat ions.
Thef i
rstst epi nanysci entifici nquiryi st o coll
ectdat ar el evantt ot he
probl em i n hand.When t hei nqui ryr el atest o phy si caland/ orbi ologi cal
sciences,dat acol l
ectioni snor mal lyani nt egr alpartoft heexper i
menti tsel f
.
Infact ,thev er ymanneri nwhi chanexper imenti sdesi gned,det ermi nest he
kindofdat ai twoul dr equireand/ orgener at e.Thepr obl em ofi dent i
fyingt he
natur eandt heki ndoft her elevantdat ai st husaut omat icallyr esol v
edas
soonast hedesi gnofexper imenti sf inal ized.I tispossi blei nt hecaseof
phy sicalsciences.I nt hecaseofsoci alsci ences, wher et her equi reddat aar e
oftencol lectedt hroughaquest i
onnai r
ef rom anumberofcar efullysel ected
respondent s,t he pr oblem i s nott hatsi mpl yr esol v ed.Forone t hi
ng,
desi gningthequest ionnai r
ei tselfisacr iticali niti
alpr obl em.Foranot her,the
numberofr espondent st obeaccessedf ordat acol l
ect ionandt hecr iteriaf or
select i
ngt hem hast hei rowni mpl icationsandi mpor tancef ort hequal ityof
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resul
tsobt ai
ned.Further,thedatahav ebeencollected, t
hesear eassembled,
organized,andpr esentedi nthef orm ofappropriatet ablest omaket hem
readable.Wher ev
erneeded,f i
gures,diagrams,char ts,andgr aphsareal so
used f orbetterpresent at
ion oft he dat
a.A usef ult abularand graphic
presentati
onofdat awi llrequir
ethatt heraw databepr operl
yclassi
fi
edi n
accordancewi ththeobjectivesofinvesti
gati
onandt her elat
ionalanal
ysi
st o
becarr i
edout..

Awel lthought-outandshar pdataclassif

icat
ionf
acil
itat
eseasydescri
pti
on
ofthe hi dden data character
ist
ics by means ofa v ari
ety ofsummar y
measur es. These include measur es of central t
endency,disper
sion,
skewness,andkur tosis,whichconsti
tutetheessenti
alscopeofdescri
ptiv
e
stat
isti
cs.

1.2.2Inf erentialst atistics:alsoknownasi nductiv estatistics,goesbey ond

descr i
bingagi venpr oblem si tuat ionbymeansofcol lecting,summar izing,
andmeani ngfullypr esent i
ngt her elateddat a.Instead, i
tconsi stsofmet hods
thatareusedf ordr awi ngi nfer ences,ormaki ngbr oadgener alizations,about
at otalit
yofobser vationsont hebasi sofknowl edgeaboutapar toft hat
totali
ty.Thet otalit
yofobser vat ionsaboutwhi chani nferencemaybedr awn,
oragener alizationmade,i scal ledapopul ationorauni v erse.Thepar tof
totali
ty,whi chi sobser vedf ordat acol l
ectionandanal ysistogai nknowl edge
aboutt hepopul at i
on, i
scal ledasampl e.
Thedesi redinf ormat i
onaboutagi venpopul ati
onofouri nterest ;mayal sobe
collectedev enbyobser vi
ngal lt heuni tscompr isingt hepopul ation.Thi s
totalcov eragei scal l
edcensus.Get t
ingt hedesi r
edv aluef ort hepopul at i
on
throughcensusi snotal way sf easi bleandpr acticalf orv ariousr easons.
Apar tfrom t imeandmoneyconsi derati
onsmaki ngt hecensusoper ations
prohibitive,obser vingeachi ndi vidualuni toft hepopul ationwi thr eferencet o
anydat achar acteristi
cmayatt imesi nvolveev endest ructivet est i
ng.I nsuch
cases,obv i
ousl y,theonl yr ecour seav ailablei st oempl oyt hepar ti
alor
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incompl etei nformat i
ongat heredt hr oughasampl ef orthepur pose.Thi si s
preciselywhati nf erent i
alst ati
sticsdoes.Thus,obt ainingapar t
icularv al ue
from t hesampl ei nformat ionandusi ngi tfordr awingani nferenceaboutt he
entirepopul ationunder l
iest hesubj ectmat t
erofi nf erent i
alstati
st ics.
Inferentialst atistics hel ps t o ev al uatet he r isks i nvol
v ed inr eaching
inferencesorgener ali
zat ionsaboutanunknownpopul ati
onont hebasi sof
sampl ei nf
or mat ion.Forexampl e,ani nspectionofasampl eoff ivebat tery
cellsdr awnf rom agi venl otmayr ev ealthatal lthef i
v ecellsar ei nper fect l
y
goodcondi tion.Thi sinfor mationmaybeusedt oconcl udet hatt heent i
rel ot
isgoodenought obuyornot .
Sincet hisi nferencei sbasedont heexami nat ionofasampl eofl imi ted
numberofcel ls,iti sequal l
yli
kelyt hatal lthecel lsi nt helotar enoti nor der.
Itisal sopossi bl et hatal lthei t
emst hatmaybei ncludedi nt hesampl ear e
unsat isfactor y.Thi s maybe used t o concl
ude t hatt he ent ir
el oti s of
unsat isfactor yqual it
y,wher east hef actmayi ndeedbeot herwi se.I tmay ,
thus, benot icedt hatt her eisalway sar iskofani nfer enceaboutapopul at i
on
beingi ncor rectwhenbasedont heknowl edgeofal i
mi t
edsampl e.

1.3FUNCTI ONSOFSTATI STICS:

Therear emanyf unctionsofst at
istics.Letusconsi dert hef ollowingf i
ve
i
mpor tantfuncti
ons.
1.3.
1Condensat i
on:
Generall
yspeaki ngbyt hewor d‘tocondense’ ,wemeant or educeort o
l
essen.Condensat ioni smai nl
yappl iedatembr aci
ngt heunder standingofa
hugemassofdat abypr ovidi
ngonl yf ewobser vati
ons.Ifinapar ti
cularclass
i
nChennaiSchool ,onlymar ksinanexami nati
onar egi v
en,nopur posewi ll
be served.I nst
ead ifwe ar e given t he aver
age mar kint hatpar t
icul
ar
examination,defi
nitelyitser vesthebet t
erpur pose.Simi l
arl
yt her angeof
marksi salsoanot hermeasur eoft hedat a.Thus,Statisti
calmeasur eshelp
toreducet hecompl exit
yoft hedat aandconsequent l
yt ounder standany
hugemassofdat a.
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1. 3.2Compar ison:
Classi fi
cat ionandt abul ationar et het womet hodst hatar eusedt ocondense
thedat a.Theyhel pust ocompar edat acol lectedf r om di fferentsour ces.
Grandt otal s,measur esofcent r
alt endencymeasur esofdi spersion,gr aphs
and di agr ams,coef ficientofcor relat
ion et c pr ov ide ampl e scope f or
compar ison.Asst atisticsisanaggr egateoff act sandf igures, compar isoni s
alway spossi bl eandi nf actcompar i
sonhel psust ounder standt hedat ai na
bet terway .
1.3. 3For ecast ing:
Byt hewor df orecasting,wemeant opredi ctort oest imat ebef orehand.
Giv ent hedat aoft hel astt eny earsconnect edt or ainfal lofapar t
icular
districti nHawassa,i ti spossi blet opr edictorf orecastt her ainf
allf ort he
nearf uture.Inbusi nessal sof orecast i
ngplay sadomi nantr olei nconnect ion
withpr oduct ion,sal es,pr of i
tset c.Theanal y
si sofr egr essi onanal ysispl ays
ani mpor tantr oleinf orecast ing.
1. 3.4For mul at i
ngpol icies:
Var ies gov ernment alpol i
cies r egar di
ng i mpor t expor tt rade,t axation,
planni ng,r esour ceal locat i
onandsoonar ef or mulat edont hebasi sofdat a
regar dingt heseel ement s.
1. 3.5Est imat i
on:
One oft he mai n obj ectives ofst ati
sti
cs i s drawn i nf erence abouta
popul ationf r
om t heanal ysisf ort hesampl edr awnf rom t hatpopul ation.I n
estimat ion t heor y,we est imat et he unknown v alue oft he popul ation
par amet erbased on t he sampl e observati
ons.Suppose we ar e gi ven a
sampl eofhei ght sofhundr edst udent sinaschool ,basedupont hehei ghtsof
these100 st udent s,i ti spossi blet o estimat et heav eragehei ghtofal l
student si nt hatschool .

1.
4.LIMITATIONSOFSTATI STICS:
St
ati
sti
cswithal li
tswideappli
cati
oninever
yspher
eofhumanact
ivi
tyhas
i
tsownlimit
ations.Someofthem aregi
venbel
ow.
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1.4.1St ati
st icsi snotsui tabl et ot hest udyofqual it
at i
vephenomenon:
Sincest atist i
csi sbasi callyasci enceanddeal swi t
hasetofnumer i
caldat a,
itisappl icabl et ot hest udyofonl yt hesesubj ect sofenqui ry,whi chcanbe
expr essed i nt ermsofquant itati
v e measur ement s.Asa mat teroff act,
qual i
tat i
v e phenomenon l ike honest y
,pov er ty ,beaut y ,i ntel l
igence et c,
cannotbeexpr essed numer icallyand anyst atisticalanal y siscannotbe
directlyappl i
edont hesequal i
tativephenomenons.Nev erthel ess,st atistical
techni ques may be appl ied i ndi rect l
y by f irstr educi ng t he qual itative
expr essi onst oaccur atequant i
tativet erms.Forexampl e, thei ntelligenceofa
groupofst udent scanbest udi edont hebasi soft heirmar ksi napar ticular
exami nat i
on.
1.4.2St atisticsdoesnotst udyi ndi viduals:St atisti
csdoesnotgi veany
speci fici mpor tancet ot hei ndi viduali tems;i nf acti tdeal swi thanaggr egat e
ofobj ects.I ndi viduali tems,when t hey ar et aken i ndiv i
dual l
y do not
const itute any st at i
sticaldat a and do notser ve any pur pose f orany
statisticalenqui r
y .
1.4.3St atist i
call awsar enotexact :I tiswel lknownt hatmat hemat i
caland
phy sicalsci encesar eexact .Butst atisticallawsar enotexactandst atistical
lawsar eonl yappr oximat i
ons.St atisticalconcl usi onsar enotuni ver sallyt rue.
Theyar etrueonl yonanav er age.
1.4.4 St atisticst ablemaybemi sused:St atist icsmustbeusedonl yby
exper ts;ot her wi se,st atisticalmet hodsar ethemostdanger oust ool sont he
handsoft hei nex pert.Theuseofst at i
sticalt ool sbyt hei nexper iencedand
unt r
acedper sonsmi ghtl eadt owr ongconcl usi ons.St at i
st i
cscanbeeasi ly
mi susedbyquot i
ngwr ongf igur esofdat a.AsKi ngsay sapt ly‘ statisticsar e
li
kecl ayofwhi chonecanmakeaGodorDev i
lasonepl eases’ .
1.4.5St atisticsi sonl y, oneoft hemet hodsofst udyi ngapr obl em:
Statist i
calmet hoddonotpr ov i
decompl etesol ut ionoft hepr obl emsbecause
probl emsar et obest udiedt akingt hebackgr oundoft hecount ri
escul ture,
philosophyorr el
igioni nt oconsi derat i
on.Thust hest ati
sticalst udyshoul dbe
suppl ement edbyot herev idences.
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Defi
niti
onofSomeBasi cTer ms
a.Stati
sticalPopul ati
on:Itist hecol lect
ionofal lpossibleobser vationsof
a speci fi
ed char acteri
stic ofi nterest( possessing cer t
ain common
property)andbei ngunderst udy.
b.Sampl e:Itisasubsetoft hepopul ati
on,selectedusi ngsomesampl ing
techniquei nsuchawayt hattheyr epresentthepopul ation.
c.Sampl ing:The pr ocess ormet hod ofsampl e sel ecti
on f r
om t he
population.
d.Sampl esi ze:Thenumberofel ement sorobser vat
iont obei ncludedin
thesampl e.
e.Census:Compl eteenumer ati
onorobser vati
onoft heel ement soft he
population.Ori tist hecol l
ection ofdat af rom ev eryel ementi na
population
f.Paramet er:Char acteri
sti
cormeasur eobtainedf rom apopul ati
on.
g.Stati
stic:Char acter
isti
cormeasur eobt ai
nedf rom asampl e.
h.Variable:I tisan i tem ofi nt
erestt hatcan t akeon manydi f
fer
ent
numer icalvalues.
1.5.TypesofVar iablesandMeasur ementScal es
Av ari
ablei sachar acter i
sticofanobj ectt hatcanhav ediff
er entpossi ble
val
ues.
Therear etwot y pesofv ariables.
a) Quant itati
vevar i
abl es:ar ev ar
iablest hatcanbequant ifi
edorcanhav e
numer i
calv al
ues.Aquant itati
vevar iabl ei
sav ari
ablewithquant itative
data.Ex ampl es:hei ght,ar ea,income,t emperature,numberofcl assina
building,etc.
Quatit
ativev ariablescanbef urtherclassi fi
edas
 Di scret ev ar
iabl es,and
 Cont inuousv ariables
i. Discr etevar iablesar ev ariableswhosev al
uesarecount sandal ldi
scret e
variableshav egapsi nthei rscal eofmeasur ement .Discret evari
abl es
takeononl yaf ini
tesetofv alues
Exampl es:numberofst udent s,numberofhousehol ds( f amil
ysi ze),
Numberofpagesofabook.
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i
i. Continuousvariabl
esarev ar
iablesthatcanhaveanyv al
uewithi
nan
int
erval.Cont
inuousvari
abl
est akeonaninfi
nit
enumberofval
ues.
Examples:weight
,Length,
Volume,temperatur
eandelev
ati
on.etc.

b) Qual it
at i
v evar iables:ar ev ariablest hatcannotbequant if
ieddi rectly
.
Exampl es:col our,beaut y ,sex,l ocati
on.Qual it
at i
vev ari
abl esar eal so
calledcat egor icalv ariabl es.A cat egor i
calvar iablei sav ariablewi th
categor icaldat a,
Hencewehav et wot ypesofdat a;qual i
tati
v e/Cat egor ical& quant it
ative
data.
 Dat at hatcanbegr oupedbyspeci fi
ccat egoriesar er eferredt oas
categor icaldat a. Cat egor i
caldat auseei thert henomi naloror dinal
scaleofmeasur ement .
 Dat athatusenumer icalv aluest oi ndicatehowmuchorhowmanyar e
referredt oasquant i
tat ivedat a.Quant i
tati
v edat aar eobt ainedusi ng
eithert heinter v alorr at i
oscal eofmeasur ement .
LevelofMeasur ement
Datacanbemeasur edaccor dingt ot hel evelsofmeasur ement .Thel ev elof
measur ementoft hedat aof t eni ndicatest hecal culationt hatcanbedonet o
summar i
zeandpr esentt hedat aandt hest atisti
calt hatcanbeper formed.
Therear eact uallyf ourl ev elsofmeasur ement :nomi nal,or dinal,i
nterv al
,and
rat
io.Thel owestort hemostpr imiti
v emeasur ementi st henomi nall evel
.
The highestort he l ev elt hatgi vesust he mosti nformat ion aboutt he
observationi sther atiolev elofmeasur ement .
Nomi nalLevelDat a:
Inthenomi nallev elofmeasur ement ,theobser vati
onscanonl ybecl assi f
ied
orcount ed.Ther ei snopar t
icularor dert ot hel abels.Genderi sagood
example oft he nomi nall ev elofmeasur ement .Suppose we countt he
numberofst udent sent eringaf ootballgamewi thast udentI Dandr eport
how manyar emenandhow manyar ewomen.Wecoul dr epor teithert he
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menort hewomenf ir
st.Fort henomi nall evelofmeasur ementt herei sno
measur ementi nvol ved,butonl ycount s.
Tosummar ize,thenomi nall
ev eldat ahast hef oll
owi ngpr oper t
ies:
 Dat a cat egor ies ar e mut ual l
y excl usi ve( an i ndividual,obj ect,or
measur ementi sincludedi nonl yonecat egory ),soanobj ectbelongst o
onlyonecat egor y
.
 Dat acat egor ieshav enol ogicalor der.
OrdinalLevelDat a
The nexthi gherl evelofdat ai st he ordi nall ev el.Tabl e 1-1 l i
stst he
passenger s’sat i
sf act i
ont owar dst heser viceof feredbyEt hiopianAi rli
nes.
Eachpassengeranswer edthequest ion“ Ov erallhowdi dy our ateyourl ev el
ofsat i
sfaction? ”Thi sill
ustratest heuseofor di
nalscal eofmeasur ement .
Onecat egor yi s“ higher ”or“ bet t
er ”thant henextone.Thati s“ Superior”i s
bett
ert han“ Good, ”“ Good”isbet tert han“ Av erage, ”andsoon.Howev er,we
arenotabl et odist inguishany thingaboutt hemagni tudeoft hedi f
ferences
betweengr oups.Wecanonl yconcl udet hatar at
ingof“ Good”i sbettert han
aratingof“ Poor .”Wecannotconcl udehowmuchbet t
ert hatratingis.
Rating Frequency
Super ior 56
Good 11
Aver age 7
Poor 4
Inf
er ior 2
Tabl
e1-1Levelofsat
isf
act
ioni
nEt
hiopi
anAi
rl
ines

I
nsummar y,
thepropert
iesofordinallev
eldat
aar e:
 Thedat
acategori
esaremut uall
yexclusi
veandexhausti
ve
 Dat
acategor
iesarerankedoror der
edaccordingt
otr
aittheypossess.

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IntervalLevelDat a
Thei nt ervall ev elofmeasur ementi st henexthi ghestl evel .Itincludesal lthe
charact er i
sticsoft heor dinall ev el
,buti naddi ti
on,t hedi f
ferencebet ween
valuesi saconst antsi ze.Anexampl eoft hei ntervall evelofmeasur ementi s
temper ature.Suppose t he t emper atures on f i
v e consecut i
ve day si n
Hawassaar e20,25,22,30and35degr eeCel sius.Theset emper at
ur escan
be easi lyr anked,butwe can al so det ermi ne t he di ff
erence bet ween
temper atures.Thi si s possi bl e because 1 degr ee Cel sius r epresent sa
const antuni tofmeasur ement .Equaldi fferencesbet weent wot emper at ur es
aret hesame, regar dlessoft hei rposi tionont hescal e.Thati s, t
hedi fference
between20degr eeCel siusand25degr eesi s5,t hedi f
fer encebet ween30
and35degr eesi sal so5degr ees.
Thepr oper tiesoft hei ntervalscal ear e:
 Dat acat egor iesar emut ual lyexcl usiv eandexhaust i
v e
 Dat a cat egor i
es ar e scal ed accor ding t o t he amount of t he
char act er i
stictheypossess.
 Equaldi fferences i nt he char acteristic arer epr esent ed by equal
di ff
erencesi nt henumber sassi gnedt ot hecat egor i
es
Rat i
oLevelDat a
The r ati
ol ev eli st he highestl evelofmeasur ement .The r atiol ev elof
measur ementhasal lt
hechar acteristicsoft hei nter vallev el,buti naddi tion,
the0poi nti smeani ngfulandt her atiobet weent wonumber si smeani ngf ul.
Exampl es oft he r atio scal e ofmeasur ementi nclude wages,uni ts of
product i
on,wei ght,andhei ght .Moneyi sagoodi ll
ust ration.I fy ouhav ezer o
bir
r ,
t heny ouhav enomoney .Ther at iooft wonumber sisal someani ngf ul.If
Zamboear nsbi rr10, 000pery earandFi rduear nsbi rr20, 000pery ear ,t hen
Fir
duear nst wi ceasmuchasZambo.
Thepr oper tiesoft her atiolev elar e:
 Dat acat egor iesar emut ual lyexcl usiv eandexhaust i
v e;
 Dat a cat egor i
es ar e scal ed accor ding t o t he amount of t he
char act er i
sticst heypossess;
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 Equaldi fferences i nt he char acter i
stic ar er epr esented by equal
di f
ferencesi nt henumber sassi gnedt ot hecat egor ies;
 Thepoi nt0r ef l
ect stheabsenceoft hechar act eristics.
1.6.SCOPEOFSTATI STI CS:
St atisticsisnotamer edev icef orcol l
ectingnumer i
caldat a,butasameans
ofdev elopingsoundt echni quesf ort heirhandl ing,anal yzinganddr awing
val idi nferencesf r
om t hem.St at i
st i
csi sappl i
edi nev eryspher eofhuman
act ivit
y–soci alaswel lasphy sical–l ikeBi ology ,Commer ce,Educat i
on,
Pl anni ng,Busi nessManagement ,Infor mat i
onTechnol ogy ,etc.I ti sal most
impossi bl
et of indasi ngledepar tmentofhumanact ivitywher est atistics
cannotbeappl ied.Wenow di scussbr i
ef l
yt heappl i
cat ionsofst at
ist icsi n
ot herdi sciplines.
1.6. 1St at
isticsandI ndust ry:
St atisticsiswi del yusedi nmanyi ndust ries.Ini ndust ries,cont rolchar tsar e
wi del yusedt omai ntainacer tainqual it
yl evel.Inpr oduct ionengi neer ing,t o
findwhet hert hepr oducti sconf ormi ngt ospeci ficationsornot ,st at i
st i
cal
tool s,namel yi nspect ion pl ans,cont rolchar t s,et c.,ar e of ext reme
impor tance.I ni nspect i
onpl answehav etor esor tt osomeki ndofsampl i
ng–
av eryi mpor tantaspectofSt atistics.
1.6. 2St at
isticsandCommer ce:
St atisticsar el ifebloodofsuccessf ulcommer ce.Anybusi nessmancannot
af fordt oeitherbyunderst ocki ngorhav ingov erst ockofhi sgoods.I nt he
begi nni ngheest imat est hedemandf orhi sgoodsandt hent akesst epst o
adj ustwi th hisout putorpur chases.Thusst at isti
csi si ndi spensabl ei n
busi nessandcommer ce.
Assomanymul tinationalcompani eshav einv adedi nt oi nI ndianeconomy ,
the si ze and v olume ofbusi ness i si ncreasing.On one si de t he st if
f
compet iti
oni si ncr easingwher easont heot hersi det het ast esar echangi ng
andnewf ashionsar eemer gi ng.I nt hisconnect ion,mar ketsur veypl ay san
impor tantr olet oexhi bitthepr esentcondi ti
onsandt of orecastt hel ikely
changesi nf utur e.
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1.6. 3St at i
sticsandAgr i
cul t
ur e:
Anal ysisofv ariance( ANOVA)i soneoft hest at i
sticalt oolsdev elopedby
Pr ofessorR. A.Fi sher,pl aysapr omi nentr ol
ei nagr icultureexper i
ment s.I n
test sofsi gnificancebasedonsmal lsampl es,itcanbeshownt hatst atistics
isadequat et ot estt hesi gnificantdi f
ferencebet weent wosampl emeans.I n
anal y sisofv ariance,wear econcer nedwi tht het estingofequal ityofsev er al
popul at i
onmeans.
Foranexampl e, fivefer t
ili
zersar eappl i
edt of i
vepl otseachofwheatandt he
yieldsofwheatoneachoft hepl otsar egi ven.I nsuchasi tuat i
on,wear e
inter est edi nf indi ngoutwhet hert heef fectoft hesef ertil
izer
sont hey ieldi s
signi ficant lydi ffer entornot .Inot herwor ds,whet hert hesampl esar edr awn
from t hesamenor malpopul ati
onornot .Theanswert othispr oblem i s
prov i
dedbyt het echniqueofANOVAandi tisusedt ot estthehomogenei ty
ofsev eralpopul at i
onmeans.
1.6. 4St at i
sticsandEconomi cs:
Stat isticalmet hodsar eusef uli nmeasur ingnumer icalchangesi ncompl ex
groups and i nt er pret
ing col lectiv e phenomenon.Nowaday st he uses of
stat isticsar eabundant l
ymadei nanyeconomi cst udy .Bothi neconomi c
theor yandpr act ice, statisti
calmet hodspl ayani mpor tantr ol
e.
Alf r
edMar shal lsai d,“St ati
sticsar et hest raw onl ywhi chIl ikeev eryot her
economi sthav et omaket hebr icks”.Itmayal sobenot edt hatst ati
st i
caldat a
andt echni quesofst at i
st i
calt ool sar ei mmensel yusef ulinsol vingmany
economi c pr obl ems such as wages,pr i
ces,pr oduct i
on,di st r
ibut i
on of
incomeandweal thandsoon.St at i
sticalt oolsl ikeI ndexnumber s,t ime
ser ies Anal y sis,Est imat ion t heor y,Test i
ng St atisticalHy pothesi s ar e
ext ensi v elyusedi neconomi cs.
1.6. 5St at i
sticsandEducat ion:
Stat isticsi swi del yusedi neducat i
on.Resear chhasbecomeacommon
feat ur ei n al lbr anches of act ivit
ies.St atistics i s necessar yf or t he
formul at ion ofpol ici
es t o st artnew cour se,consi derati
on off acilities
av ailabl ef ornew cour seset c.Ther ear emanypeopl eengagedi nr esear ch
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wor kt ot estt hepastknowl edgeandev olvenew knowl edge.Thesear e
possi bleonl yt hroughst ati
stics.
1.5.6St at i
st i
csandPl anning:
Statisti
csi si ndispensablei npl anning.I nt hemoder nwor ld,whichcanbe
termed as t he “ world ofpl anning” ,almostal lthe or ganisati
ons int he
gov ernmentar eseeki ngt hehel pofpl anni ngf oref fi
cientwor ki
ng,f ort he
formul ationofpol i
cydecisionsandexecut ionoft hesame.
Inor dert oachi ev etheabov egoal s, t
hest atisti
caldatar elati
ngt oproduct i
on,
consumpt ion,demand,suppl y ,prices,inv estment s,incomeexpendi tureet c
andv ariousadv ancedst atisticalt echniquesf orprocessi ng,anal y
singand
int
er pretingsuchcompl exdat aareofi mpor t
ance.InI ndiast at
ist
icspl ayan
impor tantr olei npl anning,commi ssi
oning bot hatt hecent ralandst ate
gov ernmentl ev els.
1.5.7St at i
st i
csandMedi cine:
InMedi calsci ences,st ati
sticalt ool sarewi delyused.I nor dertot estt he
effi
ciencyofanew dr ugormedi cine,t-t estisusedort ocompar et he
effi
ciencyoft wodr ugsort womedi cines,t-t estforthet wosampl esisused.
Mor eandmor eappl i
cationsofst ati
sti
csar eatpr esentusedi ncl ini
cal
investigat i
on.

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