UNIT 1

INTRODUCTION TO STATISTICS
 INTRODUCTION

• The word statistics derived from latin word ‘status’ which means political state.

• The application of statistics is done in almost all discipline of knowledge. It is used in

social science, commerce, economics, real science and technology.

• Sir Ronald A Fisher is considered as the father of statistics.

• The Indian scholar Prashantha Chandra Mahalanobis is called as the father of Indian
statistics.
 MEANING

• Statistics means studying, collecting, analyzing, interpreting, and organizing data.

Statistics is a science that helps to gather and analyze numerical data in huge quantities.

• With the help of statistics, you can measure, control, and communicate uncertainty.
 DEFINITION OF STATISTICS

 
Statistics represent different meaning with reference to different context.
• 1. Statistical Methods
• 2. Numerical statement of facts or statistical data

1. Statistical Methods
According to Croxton and Cowden, Statistics may be defined as the science of
collection, presentation, analysis and interpretation of numerical data.
 2. Numerical statement of facts or statistical data

According to Horace Secrist  Statistics may be defined as

“It is the aggregate of facts affected to marked extent by the multiplicity of causes,
numerically expressed, enumerated or estimated according to a reasonable standard
of accuracy, collected in a systematic manner for the predetermined purpose and
placed in relation to each other”.
 FUNCTIONS OF STATISTICS:
 

• 1. It presents the facts in a definite form:

• 2. It simplifles the size of the data :

• 3. It facilitates comparison:

• 4.It enriches our knowledge and widens our experience:

• 5. It helps in formulating policies:

• 6. It helps in Business forecasting:

 LIMITATIONS OF STATISTICS

• 1. Statistics does not deal with individual measurements :

• 2. Statistics does not deal with qualitative data :

• 3. Statistical laws are true only on an average:

• 4. Only experts can make the best possible use of statistics:

• 5. For statistical analysis, uniformity and homogeneity of data:

 IMPORTANCE OF STATISTICS IN BUSINESS
 
1. Operational planning:

2. Setting Standards:

3. Control:

4. Rational Decision making:

5. Management performance/ forecasting:

6. Organization and presentation of data:

 SOURCES OF DATA
Data
Data are the facts and figures collected, analyzed, and summarized for presentation and
interpretation.

Types of Data
1. Primary Data
2. Secondary Data
1. Primary Data
• These are the data that are collected for the first time by an investigator for a specific
purpose. This is also called as first hand data or raw data.
• e g Surveys, questionnaire, personal interview etc.,

Methods of collecting primary data

• Direct personal interviews
• Indirect oral interviews
• Information from correspondents
• Mailed questionnaire methods
• Schedules sent through enumerator.
2. Secondary data
• Secondary data refers to data that is collected by someone for another purpose. They
are basically second hand information.
• E g Newspapers, journals, websites etc
Sources of collecting secondary data
1. Published sources
• Reports and official publications
• Semi official publications by local bodies
• Publications of Autonomous and private institutions
2. Unpublished Sources like records by various government or private offices
DIFFERENCE BETWEEN PRIMARY DATA AND
SECONDARY DATA
 Classification and tabulation of data
Classification of data
The process of arranging data into homogenous groups or classes according to some
common characteristics present in the data is called classification.
For example: During the process of sorting letters in a post office, the letters are classified
according to the cities and further arranged according to streets.
Types of classification of data
 QUANTITATIVE CLASSIFICATION
• Elements of classification
1. The variable • Class limits
2. The frequency • Class intervals
• Class frequency
No. of children No. of families Weight No. of students
0 10 90-100 50
1 40 100-110 200
2 80 110-120 260
3 100 120- 130 360
4 50 130-140 90
 TABULATION OF DATA

• Tabulation is a systematic and logical representation of numeric data in rows and

columns to facilitate comparison and statistical analysis. It facilitates comparison
by bringing related information close to each other and helps in statistical analysis
and interpretation
 TYPES OF TABLES
1. Simple and complex tables
• simple table or one-way table
• Two way table
2. General purpose and special purpose table
• General purpose or reference tables or repository tables
• Special purpose table or summary tables
 STATISTICAL ENQUIRY

•  Statistical enquiry means statistical examination.

• The person who conducts an investigation is referred to as an investigator.

• The investigator requires the help of an enumerator who gathers data and a
respondent who gives the information about statistical examinations.
• Stages of Statistical Enquiry

1 Collecting Data.

2 Organizing and Presenting Numerical Data.

3 Analyzing the Numerical Data.

4 Interpreting the Numerical Data.

 STATISTICAL REPORT

• After the data have been collected and analsed,it is usually necessary to embody the
results of the survey in the form of s report. The preparation of report, therefore,
constitutes the final step in execution.
• Two types of report *General report *Technical report
• The statistical report provides basic information about the table that is processed in each
step. The statistical report also indicates the number of key values used to retrieve rows in
the table.