MODU LE

1
INTRO DUCT ION TO STATISTICS

Statistics has occupied a pivotal place in the modern political and administr ative
scenario. No field of business study is compJete without the knowledg e of statistics. The
science of statistics has been applied widely in all areas at pre~ent.

An ·educated citizen needs an understan ding of basic statistical tools to function in a

world that is becoming increasingly dependent on quantitative information. Statistics means
numerica l descriptio n to most of the people. The term 'statistics ' is generally used to
understan d the numerica l facts and figures about per capita income, agricultural productio n,
industrial productio n , rate ofintlatio n import and export and so on during a year. However,
as a subject of study, it refers to the body of principles and procedure s developed for the
collection , classifica tion, summaris ation and interpretation of numerical data for the use
of such study. In the field of commerce , every business manager needs a sound back ground
of statistics. Actually statistics is a set of decision making technique s which helps
businessm en in drawing inference s form the available data.

Orig,in and Growth

The word statistics has been derived from the Latin word 'status', or Italian word
'Statista' or German word Statistik' , which means a political state. It is termed as political
state since early years. The state administration requires data regarding birth, death, income,
1
employme nt, etc to measure the socio-eco nomic condition of the people. Hence the subject
matter of stati stics was used knowingl y or unknowingly from the very ancient days.

The word ' stati stics' appeared for the first time in the famous book, '~Element s of
Universal Erudition '' by Baran J.F. Von Bielfeld. One of its chapters is entitled ' statistics'
and contains a definiti on o f the subject as hthe science thnt teaches us what is the political
arrangem ent of all the modern states of the known world". However, for the first time
the word was introduce d by Professor Gottfried Achcnwa ll ( 1719-1772 ), who was the
Professor of Law and Political Science al Gottington (Germany). He. in 1749, recognized
statistics as a specialise d branch of human knowledge. This is why he is called hFathero f
Statistics" .
 -' _____ __:: : :;:;. _- - - - - ~=;;;;::;;=-=-..;;;;; QUA NT
ITA TTVE TECHNIQUES f'OR B
M·mv th~ ri~s hnv~ been formulated du Usr,~ -
. . ring the last century. The major c
fbr th~ dcvdopm~nt (1f. srnt1st ." . '""' .
1cs me ?a lto n, ~owley, ontr1
.
bu1
Ed~eworth, Karl Pearson and R%.
. ,1,c'r• (1n \to n pioneered the study ot Re
F,~ , gress10n Analysis. Karl Pearson prop
"t . "v of Corrch,ti on Annlysis nnd Chi-Square Test. Sir ounded ·A.
~ Uu Ronald. A. Fisher (l 1
\\ h(). is call~d us the °Fnthcr of Mo 890 ~
dern Stutistics'' drew many solid ·1962
statistical dato. He applied statistics to conclusions~ l
many fields such as psychology, genetic
. s, educat·l)ll':
biometry. busines$ and eco nomics~ t~o de~·n me d'1cm
.. d
e, etc an propounded many concep ion
tht.'Orie~ and rests. He was the rea l gia ~
nt m the development of the theory
of statistics.
ln the present era , statistics is consid
ered as one of the most important too
dt'Cis.ions. All the branches of scienc . ls fortak'
-1~
e and ~ommerce make use of statist
indispensab le tool in the hands of go ics . It is ~
vernment for the efficient conduct of
policy fonnulation and its effective administrat ion.
implementation. In research work,
piace as a tool of res earch. Thus in it has got its own
every situation there is a great dem
which paves way to its growth. and for statistics,

Meaning and Definition

Today. statistics is a very commonly

used word. But it is understood by diff
in different senses. To some people, it erent people
is a set of figures, tables and charts. For
it is a method of studying quantitativ some othe rs.
e aspect regarding some phenom·ena.
science of analysis and interpretation Actually it is a
. Thus we ca~ see .that generally the wo
used in tvvo different senses. In the firs rld stati 5t ics is
t sense, it refers to the numerical facts,
data and in the second sense, it refers called st8ti st1 cal
to some theories, cal led statistica\ me
thods.
Statistics has been defined different
ly by different statisticians. Some hav
statis tics as statistical data (plural sen e deft ~
se); while others as statistical methods
lsingu\ar s~nsc ·
(i.) Sta.tiBtics as data (In the plu
ral sense)
.
In the'- plural sense, . . ~
stat1 st1cs sta nds l'or num erical focts collected. In ot t,ef\\ Nd~. it i~
in the form of ~tati stical data. But all 11 311
,
d fi ·t· ,. ·. · ·
e IOI ions ves cnh1n g hlutrn · ·
num cri cul dnt n urc
t1cH llHdu.tu. Rut the dcli nition giv
not stntistil:s. Th~~ are s:
e n by Pr o·f Hornet> . cc
\i~t
is most exhau stiv e.
·-
Acco rdi~g 1
to l'rof. llorq c0 SccrlNI, ''Hy NhltlN
affected to a ma rked e, tcnt hy mu
~l;;.~e,;;;~ll~;!cs-;;r::.\
tlcs
• ltipllcUy of cnu8cs, numericully cxp
en um era ted or estimated according rc tcd
ton t·cmmnnblc stn nd nrd of accu•.ucy . colleC
·m a SY 8 tcm i , . to
at c ma nn er for u prc -.dc ter ml nc d
eac h oth er" . pu rpo se an d pluccd n · tao 0 .
i rclo
-- - - .. - - - - · ---
... -• . . ·• - - ~ - - - ·- ...__.
.. - ___ .. _ .
____.-_.,
A-.,_....--,,,,,,__...,,... .•
 At·l-:t1rdi11g 1n Proff Horau.·o s,,,,rist, ,i1~, stntistirs ,,·e 1nt>an agg•~att's oJra,-ts
,, f'ft'.: h•tl to n 11111 rk,)cl ,,;:i l'CII i' hy 11111 ltiplf,,if~t of euust}s, uurued'-..H.H~- expri~~~.
t'nn1n4•1·11tl·d or esf hnuil'd oct'ording ton ninsonuhle stundard of21(X·u1,a~~-, t'Ollt,i\'d
in ,,. sysh'111u1 k 11u1111h'r f,,r u p1-i,,,. deternli11ed .Purpost, and .f>hH:t'fi in rd:1tio11 C\)
1
t' ih,• h 0H1e·f \
 9

Characteristics of statistics

The definition gi ven by Horace Secrist highlights th~ fol lo \\ ing n~ th(: moin
characte ristics of statistics:

J. Statistics are aggre-g,ates of facts

A sing le or an iso lated fi gure. though numer ically c:xpre~~d. i:- not st.1ti stic- ~. h)r
exa mple, one road accident. one dea th. one birth. popu lation of one: country. mnrk~ o ( one
:1tudcnl. etc are not statisti cs: but aggregate of fi gures re lating to occide nt&. dcn1hs, hirth ~.
population o f different countries. marks. etc m cr different times. ploccs, countries or ~ubjcrts
1

arc stati st ics.

2. Statistics arc affect"cd to n marked exte nt by multiplici ty of causes ,.,.

Statistical data arc innucnccd b) o number of focto rs. One cause olom; cnnnot be.' :{Hid
l o be responsible for the give n stati s·t icol dn to. For examp le, tht: datn r~garding ngri l: tilturnl
production arc affected to a marked cxrcnr hy o number of fnc tors li lc rainfoll. qltalicy o r
soil, method of culti vati on. qunl it) of seed. fcrti liLt:r u,cd. etc.

3. Statistics arc numeric.ally expressed

All statistics arc numerica l stoh:mcnt of fac ts. fhn t m~ons suuisticu l data should be
expressed numerically. Fo r example, when we sny that·· fhc population of Ind ia is rap idly
increasing" or "The production of rice in Kem la is in$utli cienf' . such qualitative statements
arc not statistics. On the other hund. the stntcmcnt. " In 1990- ·9 1 the population of India
wns ·100 crores, but now the populati on of India is 130 crores". is a stati stical statement.

4. Statistics are enumerated or estimated according to a reasonable standard of

uccuracy
The statistical data may be collected by enumeration or estimation. The enumerator must
attain a reasonable standard of accurac y while collecting data. For example, distance.: of a
place is measured to the nearest kilometer, while age of a person is counted to the nearest year.

5. Statistics are collected in a systematic manner

The statistical data are collected in a systematic manner according to a well prepared
plan. That means. before collecting data. a suitable plan of data collection should be prepared
and the work should be carried out in a systematic manner.

6. Statistics are collected for a pre-determined purpose

'
The purpose of collecting data must be decided in advance. The purpose should be
well defined and specific. The investigator should be fully aware of the purpose of enqu iry
before he proceeds to collect data.
 /.'0/ J Ill .

- - - - - - - - - - - - - - - - - <l l /1\N.,./'1 1\'/J\ 1 / :' '/'1:' CI/ N/( ll}J -'\'

< ~, ' 1S/Nf:.SS - J
10
other
Stnt ist i(·s sh ou ld b<• pla\ccd in relation Co cuch
7.
lhc pu rpose of compariso n . To ma, k c data fit
st.ly ~o llc ctc d for .
Swtisticul dutn arc mo ample , the height of
Ni ld b~ ho1 tw ~c nc o~ 1s and_ uniform._ 1:or ex
for ~0m~~nris0n th~ y sh he igh t of
t n t .
students 111 another class ' bLi 0 With
co mp nr cd wi th
student--s Ill a class ,s tn be dnta must be homogeneou
s.
an im ab . Th ul mc un s the
h~ight of t~ l's or
s of sta tis tic s as sta tis tic al Data or pl ur al no un
Otht'r Dr fin iti on
y department
wl y, ·'s tat ist ics are nu me rical statement of facts in an
According to A.L. Bo
on to each other" .
of inquiry. placed in relati
, " By sta tis tic s we me an quantitative data affected to
ndall
Ac co rd in g to Yule and Ke
plicity of causes".
a marked extent by multi
natural
ist ics are me as ur em en ts, enumerations or estimates of
L.R. Co nn or defined, ·'s tat
er-relations".
a, sy ste ma tic all y arr an ge d so as to exhibit their int
or socia l ph en om en
e)
) St at ist ics as M et ho ds (In th e sin gu la r se ns
(ii ians.
nte xt ha s be en de fin ed dif ferently by different statistic
co
The ten n ·statistics· in this tics is defined
tis tic s im pli es sta tis tic al m_ethod. On thi~ basis, statis
In the si ngular sense, sta cti on , cla ssi·fication, presentation, an
alysis
relati ng to the co lle
as ~·a techniq ue or method :
ret ati on of da ta" . A few definitions are given below
and interp
g" . It covers
wl ey , ·'s tat ist ics ma y be called the science of countin
According to A.L. Bo as cla ssification, tabulation, etc
have
unting. Ot he r as pe cts su ch
,'"ml:, one ~ pcct. ie, co
½e e, ignored . As such . thi
s definition is inadequate.
the science of
of A. L. Bo wc ly, "'S tat ist ics may rightly be called
\g;:i in in the wo rd s ed to summarize the collected da
t:i.
e of the de vic es us
is on ly ·on
I av~ -gt '5-, Th e av e ra ge
rre lat ion co eff ic ien t, co eflicient of variation, etc
ha v~ not lx'"~!l
'Jhe oth er de vice-, like co
al so incomplete .
ind wJc.d, ·1hi'> definition i"
··.
tnl i ">Li c'i is Lh e sc ien ce of cs timarc s and prohu~il il i~,
, '·S
Acv, rd rng t11 Hoddi111(t,,11
y b,: dd i,w d u~ 111,' ~•,)
lk cti oll ,
Co w, hm , " St1 11i s1lc,, mn
/\c co rd iuv. v, Crortc,n und ·1hi .. dd i nit iun i~ ~i111pk, 1.:()n~i r
s
cr p, ctwinn of 111Hn i.! rk1 1I <1111 11",
prc se mmi<J n, anafy ·i) :111d int
and clt.:ar.

Conclusion us ti ve. II
ruf. I lor w. .c "-te~ ri •,t ih qu it e l.'. omprc li t: 11s ivl• and exha
The definition give n by f' l data . 'I liis de fi nition ('f sln
tisti\.'. S os
nra c1 cri 1.i ti v, of' 1.i tal i •. ti rn
th ro ws m ore light on the
: ch
 II
"Stot.i stical now" is r~ tcnt' d ''°' n-.. pNl,:~ t 11nd ""'"'-' nppr,,1wl 1ir,, 1hnll th t dd i ni1i,H, ,)r
stat i stir s ns metht,d8.

llifferenet· hl'tw4.'tll ~t11C iscks us Slulhdknl Uutu" und 'i SHltl, tks n~ Stnti, tk ul
0

Mel.hod s'•

Srntisti,·nl ,fotn m,· in thl' n a tlH\ ' nt' rn w muh_

' rlnb . rlwy rcq11 lrr JWtl<-'C'l'- hy ~1ntis'tk 1il
rneth\'<ci~~ H()lh ~tntb·t i~n l datn nnd stntisth:u l nwthod s nrc lnt crdcpcnd c.·111 ond l'0tHr,llmt·o1.u·"
h' ~.ll' h i\tha. H\1t thl't\.' a1': som~ pn ints '-'t'diffc1'l' t\C ~ hd wl'c n th ~ 1,.vP . rhe difltrencc-.. ore
l i:-,h.,'x.i t'lrd t\\\ :

Sta tis tical 011ta Stutl~tknl Mcehocl~

It•~ 9\A i lnhlc in rrm form ~ailed
"' ft 1,,, qua nti l:lti, c
~ h i~ descriptive in natu re
j h i" mea nt for processing und processe d
dala hel ps in decision making
5. The se lecti o n of sta ti sti cal meth od
depends o n the u1ility of data
-- -
6. ~ ithout application of statistica l methods
~tatistica l data have no use
- - - - - - --- - - - - - - - - - - - - - - - -- -
Subject - matter of statistics (Division of Statistics)
11m dnt n I. It helps 10 prnccss th l.' rmv dntn.
2. It is 1111 ,)pc.:rn1 i()11 ol t<.•c hniql• ~.
J. It is n to,,I or an alys is.
4. II helps in unnlys in g th e pro~'-'ssc d dat.1.
I
- 1
5. ll is nc~cssnr y 10 have a "-n'-n~kJ gc c,f
statisticn l mcthnds while co llecti ng dntn.
- - --t-- - - -
6. Tools and techniques of anolys is ""i ll he
idle for wont of stoti ~ti~nl dutn.

The subjec t ma tt e r of stati stics may be class ified into four ca tego ric..· ~. n:Hncly .
de .c.npt1 \ ~ ana lytical. inducti ve, inferential and applied .

I. l>t""Kriprh e St-atistic-s

i~.cr pfr, t' ~ ti ,-tic~ i!:) a sta li sti cn l method whi ch is uscJ to dc~crihc th~ l\as k t~·.Hur¢:--
tA the daUt in a '> lud) . ·r hey prov ide sim ple summ ari es ubout the :-;a mp k . n,i~ ind lr'-k~
~ J !A,t af ,rethocl'> like co llec tion und to bul nt.i on. uv1.:rng~~. lrl' nds.
indt· , mrn\t'-,·r, ..
d :;r..r ;• \.t ~~. ~ ·1\, and kurw,,i-, , ere whi ch ltd p i11 ~ummuri 1ing nnd ~11:,\.·ri~tns th,-
~ t~tAt \ ,,t dw: ,fa1;; I h ~~ de~~ rip1iv c nicu,uru'ii ll l\ .' ba"' i"' l'\)f' an~ ,\"lt1 , t1,-,\.l a11,t.l.
'- ' ' "·
t<,< t'1..a,q.A-· ;,111tuud ,.._ 11H! Jrr and 'lltmd,ard dc v101i, in 11n· m;" l•" M' t,1r dnl\ tn}! l \ ,,-!) i.., 11.' nt
(, f u,ffdiih ',ft o f J, A'$//'•#-,, ,, ,11

2, Aaalyli<-;;f Ur. t1U i-t •

·1ht \ method 4..,n~J•, I ~ , ,1 ul l 1111 , \, ,m th111 h \-, Iii, It h,,lp 111 tl h.' 111,ut ,•1 1i~l' ,,n.,h,1, :rn"I
comp&ri ~ )n l)(;'lWc,:o ,10 1 ,.,._., ,;r 11 111r •· 1111 , 1,al 1h '1 I 1'11 "' 1,11 liHh .. tlh' 1,H·tli P\ I-. ,,l' t ·~,111.· l.u 11 ,n.
Hcgn:fi., ion. l\••'ht.: iut,,m 111 uurihulr' ., 1111tf tlw l t~r
3. Inducti ve statisti cs

ft is n brnnc h 0f sta t ist ica I m ethod. which consists of al I those procedu res that help in
th e gc nem li sati o n o r estimat ion of a phenom enon on the basis of random observa tions.
T hi s inc ludes inre rpo la tion and extrapo lation techniq ues, theory of probabi lity and the like.

_._ lnfrren tii1I statisti cs

lt is the m a in branch of statistic s. It consists of those procedu res which help in drawing
infe re nces about the charact eristics of the populat ion on the basis of sample. As such , this
mt:'thod in c ludes the theory of samplin g, testing of hypothe sis and the like. It is valuabl e
w hen examin ation of each membe r of an entire populat ion is not ~onven ient or possible
.
One can use the informa tion from the sample to make general isation ~bout the populat ion.

5. Applied statis_tics

T he a pplied statistic s consists of the applica tion of statistic al method s and techniq ues
to the problem s in differen t discipli nes. For exampl e, Statistic al Quality Control
, Sample
Suneys . Quantit ative Analysi s for Decisio n, Analysi s of Time Series, Index Numbe rs, etc
are inc luded in this class. ·
Statisti cal Metho ds
Statistic al method s constitu te the subject matter of statistic s. Accord ing to Yule and
Kendal l, ·' By stat istical method s we mean method s speciall y adopted to the elucida tion of
q uantitat ive data affected by a multipl icity of causes" . Statisti cal Method s are the devices
by w hich comple x numeri cal data are analyse ~ in such a way that they may become
inteH,gj ble and lead to corre_ct conclus ions. This division of the science of statistic s
pro-vi des tools fo r e xtractin g basic truths which often lie hidden in a mass of data. Statistic al
method s include all the general princip les and techniq ues which are commo nly used in the
wllecti on . a na lysis and interpre tation of data relating to any sphere of enquiry . These
method s are the too ls in the hands of the investig ator.

Empi-r i~I and Q uantita tive Anal.y sis

Lm piri cal Ana lyc;_; is is a n ev id e nce - based approac h to the study and inte rpre ta ti o n of
stati stic al infrJrma tion . The em piri ca l approac h re li es on real world data, m e trics a nd results
rath er than theoric ~ and co nce pts. Em pi rica l studi es arc th e collec tion and a na lys is
of
primary data bar~d un dir~ct oh~crva li on or ex pe rien ce in th e fi e ld o f study.

Quantit ative A na l ysis refe rs to cl:o nom ic. bu s iness or li na nl.:ial an a lys is tha t aim s to
underst and o r pred ict behav io ur or 0 vcn tx th ro ugh th e use orm a them a ti cal cal c ul a ti o ns.
s ta ti sti ca l mode ling and resea rc h . It a im s to present the datu in te rm s o f num e rical va lue. It
is e mpl oyed fo r pe rfor m a nce e valua ti o n. predic tin g real w o rld e ve nts such as changes in a
Coun try's Gros s Dom estic Produ ct grow th rate. and the like. Quan
titati ve analy ~is is o~en
used in po11folio mana geme nt. It is a syste matic appro ach to inves
tigati ons durin g whic h
nume rical data arc colle cted. The techn iques used in quan titati ve
analy sis are Regr essio n ,
Chi-s quare Test, Meth od of Least squar es, Simp le Grap hical test,
Testi ng of Hypo thesi s, etc.
Func tions of Statistics
Statis tics has unive rsal appli cabil ity. All huma n activ ities are
conn ected with the
statis tical data. The funct ions of statis tics are given below :

1. Statistics simp lifies the comp lexity of data

The data colle cted by the inves tigato rs are cal led raw data. The
raw data are often
unint elligi ble. The comp lex mass of data are made intell igible , simp
le and unde rstan dable
with the help of statis tical meth ods. Class ificat ion, tabul ation and
analy sis are some of the
statis tical techn iques whic h simpl ify the comp lex natur e of the
data. For this purpo se,
graph s. diagr ams, avera ges, dispe rsion , etc are used.

2. Statistics presents facts in a definite and precise form

Statis tics prese nts general statem ents of facts in a preci se quan
titati ve and defin ite
form. For exam ple, "the avera ge perfo rman ce of stude nts in math
emat ics is good" ' is a
gener al statem ent. This statem ent may be prese nted in a more preci
se and defin ite form by
sayin g that "the avera ge mark s of the stude nts in math emat ics is
90".
3. Statistics provides comparison
Comp ariso n is one of the main funct ions of statis tics. Statis tics helps
in comp aring the
data with respe ct to time and place. For exam ple, the comp utatio
n of per capit a incom e in
differ ent states of India throw s light on the comp arativ e study of
the econ omic cond ition s
preva iling in differ ent states .

4. Statistics helps in formulation of policies

Stati stic s helps in formu lating polic ies in differ ent fields . For exam
pk. th e formu lation
o f mo netar y polic y of a coun try depe nds on the gener al price
indic es. Simil nrl). Polic ies in
the field of taxation, sa laries and wage s, impo rt and export , social welfo
rc. e1c an.· fo nnul a ted
on the ha <,i~ of stati stical data.

S. Stc1ti~ tics forcc usts futur e cvcn ls

~tati ">lica I n1c1hod~ Iik c ext, upulu t io11 , n.: gn::-.s io11 . n11ulys is nf Iiml'
sl'ric s. etc provi de
~ icntific ba'>C forc slimu tin g Ill <.· future 1.:vt nl s. For cx11111pk, 0 11
the basis of tlH.: dutu ref uting
to ~<1 les of a part iculu r produ c1du, ing the ln -;1ten yl.'ars , the nrnrl-.."'·t ing
mann ga of n busin ess
cntcr pri i.,c can c~ Li 1rwt c lh l'. li kely ~nk of u prod1 u.: t durin
g the Cl) min g yL·ar.
 1,1 __.;.,;;.;;,....,____.._._....,.,__.. .,__.;,...;;..........,......,;....,..._, <lfl1\ N'J'/'1'1\ nv1:· '/'/:Cl/NJ< J11r-.•l·t)J'
1
' " I //(J•
,1/Jv1I
,,. StnthtricN formulaHc~ und tcNtN hy11othcNiN · ,\
The most theoretical fl 111ction or slali slics is to formuluto und tcM h
·
discover now l I1corics.
·· I ·or
' t Iiis
· f'>llrposc Htullr.llcu
· · I Lcsls like
· Z~tcHL, L-lCHl
' "~Yrotlic,ih
1
. . • a:<

clc urc applied. , , , 11-Hqua •

rt~-,

7. St·uthUic~ NCudic~ t·hc rclut:lom,hlp hct.wccn different fuctN

Knowled ge ab{llll the rclntil)nship among vuri ous variables is c11scntial in d. .-,.
making. Con-elution und Regression ore used for studying such relationsh,'p p (:(;i %,,
. , . . , . . 0 r exam k
the rclol1onsh1r cx1st111g between dcmund and supply ruinfall and agricultural p ,. P
•
rouucti(Jfi ' l .
etc ca n be mensurcd with the heir ol' these stntistical mcthoclR.

8. StatisticN cnlnrgcN human knowledge and experience

Slatislics mokcs mosl of' our vague und indefinite opinions and ideas clear and definite.
The sc ience of' statistics gives better knowledge by carefully analysing different conclusiom.
It is the master key to solve problems of human life.

9. Statistics mcasurcN uncertainty

Statistical methods help in ascertaining the chance of the occurrence of an event. With
the help of probahility the chance of occurrences of uncertain events can be measured
numerically. It helps a lot in decision making process.
J0. Statistics helps to draw valid infercnccR
Stati stical methods and techniques help in drawing inferences about the various
characteristics of a population on the basis of sample data.

1·1. St·atistics helps the Government

. .
Stati stic s ha s been originally termc d as
- "It 1c science
. · =- • o f K'mgs·" . Gov crnmenl neecb
. ,
. . . r· - "rh
stati stics for the proper admin1strat1on o a country. c govern mcnt uses statistical foct
and figure s to have a better understandi.ng before imp . I . If: e schemes. old a~
cmcnt1ng we ar ·
pension, WJHsubsidy, ration schemes, etc.

Scope and importance of Statistics (Utility of StatiNtics) ..

. . h I - I . .
heing used in a ,no.
,H~ 1· .;I
The science of st..tti ~nicHi,; growrn g day Y ( 11 Y· 1 18 now · . -. expanding.
. · t' . l HO vusl und cwr
field O·
f human activity. The scope und lmrortuncc o stull s tcs s . .
I . dl1 stry. trtide,
1

~
· - ogement 111 •
There is hardly any field whether it be commerce, c~onon_11cs, rnun mcjicinc. biol0g)'•
education, bu siness. adm ini stratic>n, Insurance, bur:k ,ng: m~d;~:t i~why iris said tha;,
. I lunning where stafo.;tical mcthodHUl'C not L1ppllcnblc. hHS no roof .
socio ogy, or p • . f ·t J stntistic8 without science
"Science without ~tatistlc~ bear~ no ru1 , un<
 (

~,
"'-.rr•1.1~. er .g

lnt1
ctJcn . , d hJ
qKI "' •C11fnh.;~ _a tit Uw n~ •Nf ,.~~,th •tJ,• '"
huri-cu ~@k,W ~n:i ~ t £ . : lc,J •
vl4J N 1l itttroJ ~ ~ ~-- ~
hdd~

hn1111,ffiJIK"f ia.a t ru-c.~~:.:~tt

I he ,u ic of ~b~ouo t'.! '1'( ~ tfM;;Jl

tC'" hn q JC ..~ ~t~) m~.b probkn:1 ,udl . ,

.01'\1\Jfft10hiilf!c. d --.-,."'_..,,.,"" (~ ( ~J"Ut'. . ~ K)

\ ur, x ,. . I t~, ~ U 1 • ..:'\: ll.Jl~<i~, ct.. ~rt t.:-•-,,.u ~

,Hl,._\l~--•'\ , ,t ('\. l 'fh '4'1l~ ,bl~ ,i, ~i (-Of ft 1fl • · .. T i. iou::: -t;,:An,,,.'1f'n~ p It ·

J. lmt~t1llo,r u, N\hallf"l, aaJ • w1un""'"

r~ l.u~~, l~ t'iu,mes:, ~ttr, ffil; ~i-t!-~ , tr"~ ,.,...,1-da.~-.
DCC-u • )( s:tEl •.t:~ ,.
~tb.lf\\.' '~ r,n11, Mt ti.: tr_.. cut tht'\Xl~ :x-t t.."'k1 ~rrr~ ~ pr; ~ ~~ The!<! ~~
\.'.m h..' ' '-' l\(J ct1l'\~c.:.. <Uti-.r ~ , anal\ " ,
~ -
St.H l,:',{j\'.'S, hdr~ ('-" t'.1~, -.lt.."'\: " ,,"1" re~.L.-~ - ; \,\,;'"CUXi I~- - ;~ ~ :_:u ~ . ~ ·~ ~
l'hc ~t J.t1~1t ( a\ ~ ~-•:u·~·-; L~ \k::--r-~ L°~ Sl!'C~ _. CJ:- p:- ..... ..cu ,;:I,.- tr cone.. ~ a·Jd
.mJ.\,. :-~ b) C\k.: 3 "k~ , l\.'~ ~-.:a..~·~..:- t.--c D!' ..,..., uC5..:"~- Th~ . ~---;;:::-, . . ~ a so , ~~ ..:.z
Lh-( ~ .., "1 . , _ r r· ,,i~t ,.., :wJ L~ :..~ s!: -~ er~ nx ~ -= ~~ .c,r r--.ic - -:ia..'"'l!-d t.. · "'
rn~c
,tt-..- 5-.1,' Jhns. ,,1 ~,~ ~H .\ t ;,cx....cts ~ ;_;re t:t,. _,.._g ::.~ .- ;.lJ cc~~ . .~ "be e l ~
~t ~J"1-r,'C."'" ,. - an .a!~" mx, -::, ~~~J"\-e 5:!Xi~ s:tou. thcu 1':- -r.r~~ ~ · n · ~ pt-n
1\! oth~r c.'\tmlp.l_y,·(", 1..t,..-ough ::,.l:ll.l S1!c;1l ana:~).!.S. The n.:~:-cg c --~~, c1t.t, a~:- ~~
 ,,,,,t \ ) ,\ \ \.II' . " ,th the ht•lr l'1 <:.\.\( 1,t il" #\ cc,ordin g to W'alli.s utd
f't\)N ('n" un· ~Ph . ,J
N\,h(- n. '"-, t.1u, h,' , ,, d ""'l ,, hk h '-' nn l'C U~l-J in nttud ,ing. prtlbkm, 1hat arr•.c m aJrr.ost
,' h' f\ ti"~t,t ,,f rn~u1r~ ··. ln , tH,rt.. ~\.lltstic~ tind~ U!--C \\ h1..· rc, er a ma , , of quanllt.at P, e da1a
; '-'\.',in~ --u,,p hlt,'.lt h'n ,md .mJl~~i~ 1~ in, \,h~d \\ c ~hall no,, di~u\, the use o f ~tafrst;.c s
,,u,
• , ..1, ~ fi dJ~.

t. l m1)\\rh1n ,"'\' tlf St1t t~ 1i~ in Statr

~.,t i~t•('~ is. .\ t'-x,t ,,f state !ldm ini$lrntic-n. It suppl ies e-:-sen tial inf(\rm.at~ , t. ,,...._- a
~,,, .:mm,' nt Ditl~rcnt fX"l ic,~~ of £('1\emmrnt nre based on smhs.tie,. Tre d3a relau ...rE i.O
,,f"..., .l.;,,.,. n:u i,,nal in~L'me. imports and e., po~ ~ agriculture ~ industr) . b!rti.:.. dt.:::i:hs..
m:mia~c. crim.:~ $Ui~ede$. enem~ streng1h. ~ducation. incoml' and e'-per.~ wre. etc. a:~ the
m~in .....~"" J~1,n,.~ l<' the Cl)\
....
tmment for a - good administrat ic-n. S1m1larh. .. s.um:J,cil ·..ecr..niques
....~.._ !b lode~ , um ~~. Demand An!llysi~ Time Series Anal) sjs. Qualit: Con,rot. ~u: a.~

.: ,.~ -, , , ("I \ u~~d b) gt'' crnment in fonnul:lting , ar)ous po licies. Thcrcf<."'rt:. ·1 !'5 - i::!f:•

'3•J. "'St'at ~ tics a re the e~·cs and ears of the stat-e". In al! count.ri~ ~"' , cmm,. - ~ -nr
bt~~ c~ll~ t0r 3fld user of sl3tistic s. In India. ,, e haH~the Central Su1rg:cal ~ -Jza:l·
anJ , 3tional Sample Suf'\ e~ OrganiS3ti1.."n for c0lle-cting , arious sutist;c~ relat - ;; ~..) •,--anocs
, e~d-s

Importan« in Economks
Th~ role t"t ~tau~ics in the field of econom ics is ',() , ,u, l..~ t , 1e--., , ~ '::,,- i st10t

.......~.-. .•., .. quc- are \er) much U$Clu l in the Sulution of o , anet~ t""t c., -.'flOf:"' .:
.at.'t m -onsumpt n r . J btribut 1on (I f income and \\ ~hh. cv,· .... tw .. -t.·tc l ~~ ~

cr.ffl ofln •~ ,tkkx number;,. " ~ lk·s.lJ~ pnc~ irlde'\ numbt-1'. \1 mt- --c!" ...~ an.a .' srs. ~
<.U1";n l :a t n techniyuc, Ch. arc ~lmc <,t th~ f''\\~rtul '>-wL..J \. J
f «-Oth.Jtn t~ d.'.itn anJ tor rram in~ "annu, c-", l'k..tIT' .. r-.,ht . :-.

J I CJtfthuu, •• IJ~,1 11n , 1u1tl ( u tnfflf'n--t»

er ttic bt, tin~ ~• tt\'.tfn, 1hc £fr'ul r::I i. lh, f'K"\," I,

Jill' 14':Ul CUl l! roat l flt'.1 I .nd um 141 l1i!h-! t r,:,~
' • d'

•• n \-\ lh'l hn " .. • lf1 ,, , 1'1:A 1 a ~ ~~:x~~~

I th ,ufl fthd"' O li.n ~ ,

&Je9l iii

thc,l-.1 Ii,, It"

tfl!C l!C'UU tu
"ot r1:mx: a
\.fl 'ar:-. iJl
c 1 ndlC1t ~ ..us1 fl:l t,, ' HK- ' I, ,.__"._. . .. ,
lm mJucrton to S'l.i11q1< , 15

Most o f our problems arc so lved with the help of statistics. According lo Wallis and
Robert . .. stati stics is a tool whi ch can be used in attacking problems that arise in almost
e,·cf") fi eld of inquiry'·. In short, stati stics find s use wherever a mass of quantitative data
ne-c-ding si mplificati on and analysi s is involved. We shall now discuss the use of statistics
in , :irious field s.

I. Importance of Statistics in State

Statistics is a tool o f state administration. It supplies essential information to run a

go,emment. Different policies of government are based on statistics. The data relating to
pvpulatio n. national income, imports and exports, agriculture, industry, births, deaths.
m3rriage . crimes., suicides, enemy strength, education, income and expenditure, etc are the
main gl.Jidclines to the government for a good administration. Similarly, statistical techniques
such as lnde"X Numbers. Demand Analysis, Time Series Analysis, Quality Control , etc are
extensi, et~ used by government in fonnulating various policies. Therefore, it is rightly
srud. - st.aristics are the eyes and cars of the state". In all countries, government is the
l:rrges1 collect.or and user of stati stics. In India, we have the Central Statistical Organization
and 'S_a1ional Sam ple Survey Organisation for collecting various statistics relating to various
fie lds.

2. f mporta oce in Economics

The role o f ~1.a1istics in Lhc field of economics is so vital and extensive. Statistical
:_~- . ·q..,C"\ are ~ery much useful in the solution ofa variety of economic problems such as
~ n . conS1Jm ption. distribution of income and wealth, expenditure, etc. Construction
",,f ~Jt.Z <,ff1-;. i~ andex numbers, wholesale price index numbers, time series analysis. demand
'~v.-.r"\e-<, frJ.(ec.a";J,i ng techniques etc arc so me of the powerful statistical too ls used in the
~4,_. ~.1 <A· ev. .n-,mic data and for framin g vari ous economic policies.
J, lmp,-,rt..-riv· in Hu1in~~ and Comme rce
·n)lf: huw:r •r..: btJ\ tn~•, '> <.Ofl(.l; rn ' Lh c gr cnt..:r i~ the need for -.till i -;I ic~. No\\. -a-da) S,
bu-:.tfli( ·, firrr • :air: '"<,,"1~ r..ut 1hrtY..1 f c:omr,e tirion and , imil nr other pr<i hll·m -;. Th~"~ rro~lein,
<. an be ·.i11f·,t-ti thr1,,.,;,-h <r;tt 1·,1s, !JI i1m1l yw,

~t.at 1•,lt~\ hdr,. l• , 1,1\. 1. tl,-, , ••,,,,, r1•g;1rd 1ng w l1 c tl11: 1 u cu,nr u1,1 I i ii\ ·.IMI n 11 1,.• \~ h 1t, 111,.-, ,
J hi! ~{btt·,tt<..a t tf:-1&t1 w:,,,:u-,J,,w ih•~ d, rn,wd 1111d r111pr1ly I ,r fH IH h11 ' l 'J l i\ 11 h--\ 1 \ ~ , , , ,. , h •d ,11 1d
at,a ly:..cd h> W~l· ~ 1k~ 1·,1 ,ti ,.:,,,,,d1111£ ll w ri,rw h11',li11 "~ 11 11' t11 11q h111 \ , ,111 1t1, ,, , ,111111,11<
1

the (.l)~I <Jf (Jf h d U(... tlHfl .m,J th• fl 11,r )f lf 1,,$t ,,ff( r I ht r.c ll1 r1p pill I l 1111 , ~, ~11111p111 ,•1I \\ llh
lhc '.ellrn~ pn <.< o t <."mf>'•HH'r c- pH ,th.t< L\ l1<"ln1r tnlii.1 11 11 the fl 11ul d,·, 1, 111 11 . I lh' 1.•, ,-.11111:
co mp:1nie ,,d .On af.;1 , rn.ikc: c.1 t.omr,-.H11t 1+1c "i lUd } 1,tJ.11..111l,l• 1, p~ 1 l r1 t1t 1L11l\, w 11 l1 tli. '" 1 l u 1HL11h,"
of other ~omp4' nic I 1hn,ur l1 •, Sul l \11( al ,J1i~d ).ft i!i I lu: l "ll l ,11 11 ~ l 1Hl'lp11i1 l l' t ,111 11 1 . ,, t ._ 11m.11"
I
 I (J. = = == =;;;. ;;::::..::...- -.. ..;.;:;;;;::;:...;.....::;;._;; ;;..;= ....,;;;,;;..._
() t/1\ N I II 1\ 'JI \II / / < / I " I
f,, O lli '1' It J/t /1f / ',/I// ',';
the ir future sa les. pro lit, inc om l!. ex pen ditu 1
. . . re, etc with lh ;grcMio n unt J, ·orr . . t'
. .
Similarly. stallst1 ca l tec hni que s suc h u'l l ·.xtr .
upo lot1 011 und , c 1·1 ion Hnaly.i •
. . Mc.:t hod of'I ,eu,ui , •
use d for bus ine ss fo rccusta.ng. ,<.ju arcij ta r, J~•
'·
- ..
Wh en a bus ine ssm an w unl s t.o ex.p lorc the
• .
dcm und fo r hi j pro duc t h•· h~.,. J
ma rk ~t rese arc h: ": h,c h ,s ~ ty~c of • s.tut ~ ,) 1
' - • ' • • • . ' "' J) (,.( >n ( \14,1
1sl1cu l 1n~cl'i ll gall on. In indw,trial ccmcern
tcch_ni~ue ofStat1 st~c ,~I Qualit y C_o ntro l ,s used ->th,:
to ma in~a in the qua lity ofp rod uctf.J . Similarly.
stat1 st1 cs a nd stRll St1 ca l tec hni q ue s ore
a lso use d in pro duc tio n nla nnino pc r~.r
admi nis tro t io n, b us ine ss ma nag e me nt , inv · ,, ei • ,.,Jnne•
e nto ry con tro l, pro d uc ti,Jn pla nn ing and1
ma rke ting. operati on r~s carc h etc .

Bankers. Sto c k bro kers, In sura nce Co mp ani

es and e ven inve sto rs Lake the ir <lcci~i<,n';
so lel) dep end ing on sta ti sti cs. T he sc
ience of stati sti cs is indispcn'1 able to bu~
com merce and ind ust ry. ine·> ',.

4. Im por ta nce in pla nni ng

The suc cess of pla nni ng d e pe nds upo ..

n by the bes t use of statisti cal techniqu es. It
com mon to say, ""Pl ann ing wit hou t sta i-,
tist ics is a shi p wit hou t rud der and com
"1\'it bou t sta tist ics pla nni ng is inc onc p-as , or
eiv abl e".
In al mo st all wa lks of life pla nning is reso
rted to for efficie nt working and re-viewing
rxr form anc es. But pl ann ing canno t be ima
gined without stat isti cs. For env isag ing an
eco nom ic pla n . stat isl ica I dat a re lating to pop
ulation, inco me and expenditure, production
and cons um ptio n. pric e and dem and etc,
are of utm ost importa nce. Such statigtic al data
are ana lys ed by usin g adv anc ed stati sti cal
tech niq ues such as Ind ex N umbers, Regress ion.
Tim e Seri~ An aly sis. Dem and Ana lysis and
Me tho ds of Foreca stin g. An acc urate "i°tatis
k.n<r" ledg e of the age and sex -wise com pos tic£tl
itio n of the pop ula tion is imp erat ive fo r the
grn em me m for tak i ng day -to- day po licy
dec is io ns of a stat e o r co unt ry.
Pla.nt1rng ma ) bec om e succc-,s fu l and effe
c tive only if it sho uld be based on a correcl
ar.d v>Und anal}~i·, o f C<)m pk x ')tali~t ica l da
ta. In Ind ia, Nat ional Sample Survey "a', sct
C"'.r..clu·.a·.. e l1 f<n the u>lf ecli on <J I 1-ita ti , tico
l daw for planni n g. l·ro m tht: abo ve " t'
COO(..)&Jdc tha t M.at•':,h~ ·> i!-> qui 11.: rnd m:t)
i\ ptn ~a blc in the mut ter o f' pl unning un<.J
fo rna , ting
C onc f,u d on

1 r<,m tll>(! '1.~r t~ (J,·/

- u·,~ i1 r11·, 1l, u,, h•: c,,, ,cl 11dc d th ut ,.1u1iJJ
tic.; u c~ r 11110 ail '\ut• i.:"t
mat ter•• and rA!r ~,1 :,f,;--. alt f,10.;t •1 1,f 111111,;u,
l ff c . I here t'J hm dl y 1111 y lk ld -.vh<' H. , t.itt 11
a<c r1<>\ u-..ed P ,.-; ,f, A. I ,, Jlow l.c-y f IW i r, i~l ~'
,1 I y r ,l,.,c rvt ti , "A k t1 1t t-t h·,l uc 1tf ~,,.t
k~,, .~lc dgt o f r,, rc· lijo h,nv,u ~"-" ,, ,, Al1,1 l i H\'~ i:. til.r .t
o f,, t• Jt mo y pnn'(· I•~ u.110 uf a n\ tl m
c ,rc um \ ta nc c,-."'. I l11J \ \Jah •,1,, •, t ·, u ''"'" t u uJ t:'f' un'
'' , itll y w, i p w d >,lilij t t , li11, tit ~, 1•1r Jh't
a nd a pp l,t.a r.,,n ,n :tf,n •>•' ull fr•·ld .-. n l h ,o,p,111 ti•, ,
1111 11 1r, iu. 1, v fl y
 17

Limita tions of Statisti cs

Although statistics is indispensable in almost all the spheres of human activity and
knowledge whether it be business, commerce, economics. agriculture, social science,
physical science, biological science or modern medicine, yet it has certain limitations.
These limitations of statistical methods should be kept in mind while using them . Following
are the Iimitations of statistics.

I. Statisti cs deals only with quantitative characteristics:

Statistics deals only with the quantitative phenomenon. It won't deal with qualitative
phenomenon like honesty, poverty, intelligence, beauty, etc. The statistical methods can be
applied to qualitative characteristics only if they arc expressed in quantitative terms by
giving some marks or ranks.

2. Statisti cs doesno t deal with individual items:

Statistics does not deal with single or individual object. It deals with aggregates of
facts. It requires a series of figures for calculating averages and for analysis. The individual
value has no recognition. It could not be taken in to consideration for any statistical analysis.

3. Statisti cal results arc not perfectly accurate:

The statistical theories will not give accurate results. The results would be only
approximate value. We are not expecting hundred percent accuracy from statistics because
the data collected for analysis may not be accurate. Statistical Laws are not so perfect as
the laws of science. Statistical results are true only on an average because the data are
based on the theory of probabi Iity or estimation.

4. Statistical data should be uniform and homog eneous

The data used for statistical analysis must be uniform and homogeneous. Comparison
is one of the important characteristics of statistics. Only uniform and homogeneous data
can be compared. Heterogeneous or uncomparable data will direct to wrong and misleading
conclusions.

5. Statistics may mislead to wrong conclusion in the absenc e of details

If figures are given without details, we may arrive at wrong conclusion. ror example,
two Batsmen Kohli and Dhoni have the same average scoring rate of 50 runs during the
last three IPL matches. We can say that both are equally good because of the same average
scoring rate. But this is a wrong conclusion. Let us examine the following example. Tlie
runs scored by them are given below:
 18 Qt " \ T TT ,\ rn f TEO i~ IQf E\ I
· OR fll sr,..
. !,\~
Kohli Dhoni

First Match 50 0
Second Match so 10
Third Match so 140
Total Run s: !SO 150
Average run s: 50 so
Fro m the above W (;. can come to the conc
lus ion thnt Kohli is a consbtc:nt unJ fit" .
batsman than Dh oni ~c ause of no disper ,,,
sion or vari at ion.
6. Statistics docs not re"·cal the entire sto
rv..
Stati stic s onl y simplifies the comp lex ity
of dn10. It helps the analysi s of cat ii;-.
quantitative facts. But the rea l sto ry of
the dato ma y not be reflected through thes
e fact;
7. Statistical studies in \!oh:c Errors
Sampling tec hnique is used in alm ost oil
~tnt:istica l scudics. The re fore. both snmphnf
and non-sa mplin g errors ma y creep in
~tntisticnl srudics . Thi s will lead to wro
mi slead ing ng ar.J
conclu sions.
8. Statistics is likely to be mis used
The mo st importa nt limitation of statisci
c~ is thot it mu st be used only by exp~ rts.
Statistical methods are the most dangerous
too ls in th~ hands of inexperts. As King sa)S,
'"Statistics are like clay of which one
can make a God or Devil a_s one pleases d
••Science of statistics is the useful sen '" ao
'ao t but onl.y of great value to thos
understand its e who
proper use''.

From the above observations. it is clear that

stati stjcs is me rely a tool. which if properl)
used by an expert. ma y prove extremely
useful. If it is handl ed by an inexperienced
unskilled person. it may lead to misleading an~ 8
and erroneo us conclusions, which will de 51ro)
the ent ire study. 9
Distrust of Statistics
'' D as
· t rus t of
sta t·ash
· ·es, means · h and con
lack of fait • ·ca 1staterneots
fide nce in statist1 ~ 1.
and statistical methods". Alt hou gh stat
all sph ere s of human actt.v1ty .
isti
.
. yet the scie
cal too ls hav e bec om e indi spensable in
nce of stat isti cs is loo ked upon wit. h 5 usprcro 0
0
a!~
.

The dis tres s of stat isti cs can not be attribu the SL

. . I . ted to this scie nce bec aus e it is mai 1
nly due ~ ve
f
deliberate manipu atm n ° . .
statistics by .me xpe nen
.
ced and dish one st persons to achre
p<
the ir personal nee ds.
 111 1 -. p.. 1h 111 •·ii I" 111•111 ri , ' '"" ''' 1111,p• ;l y 1if)l11 1 tJ,fJ (;h1fi ~li <.-1ctl t1;..~ hn1q u.c<;,. ~l he u<;er of
,-1,11 11,lh ,d 1111 ,!11 11 111101, I 11 t 111 ,1,p,, q 1.1 111 ,1 ,l ;I ~111, w V✓ h 1 u, 1,, nr,t1ly wh, d1 rncth,)<l . SimiJarly.
1

II ,1 p,i1t,1111 lri t1 11~1,1111,1ql 011 1 1111, , "'' 11H1111j ,11 l10 11 ll w d1!1H 111 10 1y t .d cril t" ,uit hi~ need . As a
11 111d t. 1111 11,1 111 tit, · p• 11ph • 111 u111 lq l111 v1 1 l11ttl lidll, i,, ~,~Hl c.tlt.,q, Jhit c;tutl ~tk,<; i~ no1 to
be
hl1111H ii 1111 UIVlltH w 11111 ~ , 11111 l11til1111 q 1',11 11ttl ~i 11g Hl wn ,,,g v ,11du~lm1<;. the u ml-emed
l" ' l "l lll\ f~ IIH 1 lei IH• lil 11111 , d 1

11 IP \ i ll Ill Wt ti l Il l 1~111 II I 1111 " ~ Ill i) I11\,, ~III Vl q IJI qf k k~ .. I ht y Ultl be misused if they fa 11
iii 1li, 1 IH111d 1:i nl 11111d q 11 1 d11, 11lt t~ /\ ti ~ll"I,, ritu ll '1 1lt., !i ,~ very ,,,u~h liab le to be misused by
lu 11 11111111 111 1 tt11111 t, 11 11d 111l td 111 ,,, p1 t1 1t•d. wllltl1 wi ll ,n,,ducc wrt,ng conclusion<y.

I rt "" nll,,1 t hl1 11II le1wl11/!. 1i.~11111plo : '' I II il10 hll '1,Y (}tree I~ uf Mumbai, the number of road
ih, 1.i,,111 ~ ,·1H1tn1lll \~d hy 111111111, 1 1111 10 drlvort1 dtnlng Ibo laCJl ycur w~~ 25, and the number
of
t,,,hh' "' n ,'Pll1t1tlth•d hy 11111ll' 111Ho dr'lvcn, dwlrig lht ~wt,c ycur' was 250. Hence as auto
d11 ,,~,r1, h' IIHll \1 mt lb1·1\ 'I li lri t:i t111 c1rw t1t ln not cc,rrccL Herc the data ma-y be
\MVl1 IH ltf'u
, d i " ' ' 1. h11l 11111(,,.m ll w n11111l m1' nl lb1r111lo utHJ rrwlc uulv drivers
1 arc known one cannot
11\11~ , 111, v 11111lly~ 1~ und t1'110 lril t,1p; oi11 tln11 , 1,, the wur<l~of' King ~'S1ati~tic8 ~houtd no1
1 be
1ow,I .--. u hlhuhmm m~e~ n huu1, 1w•f for MU pfu,rt ht#hmd or Illumination".

( ), d l1M1 ~1 1woplc 1,t' l11 y 1110 11 , without gol11g to the root of the cau ses, have started
d1 nt111 ~tlt1~ und hl111u lnt~ lht, r1ulc110t1 or 11tu1ln tl~rj with ccrtuin caustic remarks as follows:

I. S111tl nl I, n , ' llll p,·ovc ,1ny tlll11K

~t,11 htl, ·l l 'IIII ,wo ve 11olhl11e
1

S111t l11 t k ri Ir, 11 1lt1r111c ul' l h l r➔o hootl

'
,I S 1n 1l 1d lr:1 h 1111 1111rollohlc ,,~lcncc
il l' lt'ulh ~1111 pm<lu~c lPflltt)rJ of Hluli uticH
/\1 1 11 1111t •, 1

~1,11 l•, tk ,1,m, the ll~u ol' the l11·11t o,•dcr

I h, , r 111 r I li n:(' typt•u of' Ili.rn : 1lcu, <lumncd llcHund i,tufoitic s

I lwh· ,11\· hl11('k llc:·i. white llc11. 11wllichromutic lie~; hut stutistic s is a rainbow of lies
., ~ 11111 t,I k 11111 ,1 l 1111 hlow lhc wind In whi chever direction they like .
IO Wl n11 11111 1"" 1<·11 11·v,.:11I 111 ol'dl1wl'y ; bul whul lhcy hide iH vital.

< 11111111011 p c t, pl 1· fq 111 liil tli ond conlhlcnc(, lu 11tuti 11llc~ hccuusc of the following reasons:

I. Sfot t-. tlt·,- 111 u cllflkult rmhJ,•••t

It h nlk1, l1 ,111d h' d 1, y l11cxpt •1fo 11ccd 1111d u11k lll cd pcn10118 . It is u hi ghly technical
1111h1<'t I ( )f 11111t rU' , it ·ihn,tld IH• l11111dl t·d hy n11 expert. lJnfort unotcly. !1omc inexperienced
pn 11111 ·1 11 •,1 • ,,11111 111It n I 1111•1h11d 11, wi tk h k 11d 111 lid luclow1 conclu~lom,.
1
 (_I( •\ \ Ir I • ' ' • . • , l ,') / ,\ f
.:?D ::....=;;,-___.::;.;: : . . . . - - ~ . ; . . - - ~ - - -
----=
--
• ' 11
.ss , , ',j'
I

. f fl~
Statistk-~ h~s it-s own linuht IO ' .. • . •n • - ' •
2. - . I , 1,, I with th~ l1gurc~ wh1d1 '"Ht: innocent
• · · t •thod" nwm ~ l l;,\ and
~tmi~th:~ and stnustt~n mt.: "' . . f· , , St'lnletin,~s, the sun1pk sdected is
~ h I )f unlily ">n th~11 .h.,1.: . no1 I•
d~) Ill){ b~n_r th~· tn l' ( ' ; ., rk ·Iv tn be misknding.
~rres~ntatl \'~.. the l\.'SU u~ ,ll'\: I \.= •
31- Defecti.Y(' dutil•and insutlicicnt d1.lttl
,J , :-, ·t · n und insutlici~nt, it is diffict_11t to 11lnk, ,.
lfth~ data cnllect~d m-e tat: 1n : t\:t:, iiv•ccurntc
' ,,, ~ • .. . , e.
. . .
proper ana Ia~ s1s ot'thc nroblern
r-- ·
under studv.
" ~,
So the ,vhole purpose of the study is detented. t

..i... lnsp,propriut~ statistical ntethods

\\·hen the statistical methods used ure not appropriate. the resu It wi I) always b~ r
misleading. There is every pl)Ssibility of misusing stati stical n1ethods to depict a wrong
picture about the problen1 under study. ~-

~ - distrust of statistics we rnean lack of confidence in stntisticnl data, sb1tistical 9-

methods and conclusion drawn, But it should ahvays be borne in n1 ind that there is no 1~
fault of stutisticul methods, the fuult lies with the persons ,vho use thcrn.
ll.
Ler us consider the follqwing exumplc ...The number of roud accidents during nigh!
time is lo\., er than thost~ during day time. Hence, daytime is not favourable for driving".

This conclusion is misleading, as it is drawn withou; considering the number of 11

1
passengers and vehicles moving at night time and day time. Thus day tii~e is not the root .
cause of the accidents. · 1~-·
h is clear that statistics is not a cause of d· , . .. . ."I
st st.. 1
.~
.1 . · ru he persons \Vho n1isuse it dd1beratt:
or no t. are t 1e cause of this distrust Stnti~f I i
. . ~ ~-
. . . .t ~ ten methods should be used only by t·:xperts in
' '
the arie~ of statistics. ! 0