The word 'Statistics' is derived from Latin word 'Status', German word 'Statistik', Italian word 'Statista', French word 'Statisttique' each of which means political state. In those days "Statistics" was used only in collecting the information relating to the population of the state military strength, incomes etc. for framing the military and the fiscal policies. So, at that time, "Statistics" was considered only as the science of statecraft. However with passage of time, the science of statistics has been applied very widely. So, in modern times, the scope of statistics has considerably enlarged. It is used not only to the state in administration but it is used in Economics, Science, Business, Research, Bank etc. There is hardly any place of human activity where statistics has not been used. Show
The word "Statistics" is used in singular as well as plural sense. In the plural sense, it means the quantitative information or numerical facts collected systematically. As for example: Statistics of population, national incomes, unemployment, poverty, exports, imports etc. in the singular sense, it means the various methods and techniques adopted for the collection, presentation, analysis and the interpretation of the figures. But to a layman, it is simply a mass of figures. Definition of Statistics in singular SenseA.L. Bowley has defined "Statistics as the science of counting". Again he defined "Statistics as the science of averages". There are the narrow definitions because they cover only one aspect of Statistics. The first definition is limited only in counting. No doubt, counting is used in the collection of data. But counting alone is not statistics. The second definition includes only the averages which are related to the measures of central tendency. But there are other measures such as dispersion, skewness, correlation etc. which are not less important. So, the second definition is also not complete. Boddingston has defined "Statistics as the science of estimates and probabilities". This definition is also unsatisfactory because estimates and probabilities are only the part of statistical methods. Croxton and Cowden have given a very comprehensive definition of statistics. The definition given by them is as follows "Statistics may be defined as the collection, presentation, analysis and interpretation of the numerical data." This definition covers clearly the following aspects of statistics:
Definition of Statistics in plural senseWebster defined Statistics as "Classified facts respecting the conditions of people in a given state". This definition is not comprehensive because it is limited only with those facts and figures which are related to the conditions of people in the state. Yule and Kendall define that "By statistics, we mean quantitative data affected to a marked extent by a multiplicity of causes". This definition is also not adequate as it includes only the following two aspects of statistics (i) they are quantitative (ii) they are affected by a set of causes. The most comprehensive and exhaustive definition of statistics has been given by Horace Secrist. He defines: "By Statistics, we mean 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 a systematic manner for a pre-determined purpose and placed in relation to each other." This definition includes all aspects of Statistics. This definition has the following features.
Thus, we can conclude that "All statistics are numerical statements of facts but all numerical statements of facts are not statistics." Importance of StatisticsIn ancient times, statistics was considered only as a science which was used for collecting information about population, military strength, and wealth for framing administrative and fiscal policies. But in modern times, statistical methods are used in every sphere of life. Here we discuss the uses of statistics in planning, economics and business. Statistics in PlanningModern age can be considered as the age of planning. No work without well planning can be successful. So, most of the organizations are resorting to plan for efficient work and for formulating policy decisions. The success of the planning depends upon the correct and sound analysis of statistical data. For example: the water supply corporation will unable to face the problem relating to the supply of water in Kathmandu valley unless the population of Kathmandu, the quantity of water required per day, the quantity of water to be supplied and by which source additional quantity of water can be supplied if necessary, is known. These are the necessary information to be collected by Water Supply Corporation. This problem can be solved through the powerful statistical tools by making use of statistical data. Statistics in EconomicsThere is a close relationship between Statistics and Economics. Statistical data and statistical methods have great importance in the proper understanding of the economic problems and the formulation of economic policy. Economic problems almost always involve facts that can be expressed numerically such as production, consumption, distribution of incomes, wages, expenditures, unemployment etc. The study of economic problems requires the use of statistical methods. In the field of consumption, statistics helps to know how the people of different classes of society spend their incomes. This will enable us to have the idea about their purchasing capacity and their standard of living. Study of production statistics tries to make a balance between supply and demand. With the proper statistical data, statistics of production helps in adjusting the supply according to the demand. Statistics plays a vital role in case of distribution of incomes too. The questions such as how the national income is calculated and how it is to be distributed can bitterly be solved with the help of statistical methods. In the field of exchange, we study market prices based on demand and supply, cost of production etc. Effect in the price of commodity due to increase or decrease in supply, costs with the monopolist want to take for maximum profit etc. are the questions that can be answered with the help of statistics. Thus, exchange statistics helps in the commercial development of a nation. Statistics have a greater importance in reducing the disparities in the distribution of incomes and wealth. The problem relating to the rising prices, rising unemployment, poverty etc. can be solved with the help of statistics. Besides the economic policy, statistics has made a lot of development in economic theory. Economic laws such as Malthus's theory of population, Engel's law of family expenditure etc. were propounded after statistical tests. The importance of statistics in the study of economic problems has resulted a new branch known as "Econometrics." Statistics in BusinessFor smooth functioning, the need of statistical information depends upon the size of the business. When the size of the business is very small, only a single person can directly engage in all the areas of business activities. He can contact the customers personally and has almost all information about the business. No technique for the supply of information is necessary. When the size of the business increases, a single person cannot contact the customers personally and look after all the business activities. He cannot get the information relating to business in the same manner as in case of small size business. Unless a very careful study of the market is made, it is difficult to have success in business. Statistics helps in formulating policies regarding the business with valid forecasts about the future with the help of tendencies based on past records. Functions of StatisticsImportant functions of statistics are given below:
Limitations of StatisticsBesides the importance of statistics in every field of life, it has some limitations. The following are the main limitations of statistics are:
The average height 4 members of a family is 1.56 meters and the average depth of the river is 1.06 meters. If they are willing to cross the river, they can safely cross the river. Statistical tools used in EconomicsEconomics is basically quantitative. Every problem in economics contains numerical facts. For the study of each problem in economics, the following tools are to be used step by step.
Completing all the above mentioned statistical tools, the next important step is to draw the conclusion obtained from the analysis. For the interpretation of data, high degree of skill and experience is necessary if not fallacious conclusion may obtain. What are the four uses of statistics?Statistics can be used to predict the future, determine the probability that a specific event will happen, or help answer questions about a survey. Statistics is used in many different fields such as business, medicine, biology, psychology and social sciences.
What are the 2 main uses of statistics?Two main statistical methods are used in data analysis: descriptive statistics, which summarize data from a sample using indexes such as the mean or standard deviation, and inferential statistics, which draw conclusions from data that are subject to random variation (e.g., observational errors, sampling variation).
What are the 4 basic elements of statistics?Sample size, variables required, numerical summary tools, and conclusions are the four elements of a descriptive statistics problem.
What are the 10 uses of statistics?The Scope of Statistics in Everyday Life. Government. Applying statistics in the real world extends to every aspect of government in countries around the world. ... . Health Care. ... . Law. ... . Finance. ... . Digital Marketing. ... . Social Media Analytics.. |