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LOWY G.012DnK SS Lind key, ADRCUASSES H Be v5 Say, , statistics Soar, CHAPTER2 Rt type, , thaafa, , i Statistics as used in plural sense, must possess the flowing >, characteristics. ' O), (i) Aggregates of facts: statistics are a number of 0ts., = —~" Single and isolated figures are not statisticg auch, figures cannot be compared. 6, * (ii) Affected by multiplicity of causesgiumerical figures, are influenced by variety of factggs.|t is not an easy job, - to study the effects of any ogaifactor separately by, ignoring other factors., (iii) Statistics are nume ia iV. expressed: The statistics, , i _., approach to a subj epis numerical. So, any facts, to be, called age be numerically or quantitatively, , , , MEANING OF STATTISTICS, , , , 1..In plural sense: it means a collection of numerical facts., in plural sense, , , , , , expressed, litative characteristics like intelligence,, - beauty gonésty, etc, cannot be included in statistics. ., , (iv) Statjsties should be collected with reasonable, ard of accuracy: in statistics, data is collected, QWwith reasonable standard of accuracy. A high degree of, “” accuracy, as observed in accountancy or mathematics,, ee _1s not insisted upon in statistics, because mass of data, , Ne is involved., , Ape, , am (v) Statistics are collected for a pre determined, purpose: the purpose of collecting statistical data, , , , Scanned with CamScanner

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Join us for free trial, , doe ADR CLASSES, statistics, CHAPTER 2, must be decided in advance otherwise usefulness of, the data collected would be negligible., , (vi) Statistics are collected in a systematic manner: for, accuracy or reliability off data the figures should be y\, collected in a systematic manner. If the figures, collected in a systemic manner, the data can of), , understood easly. — J, , (vii) Statistics should be placed in relat} fais each, other: collection of statistical data Sa, done, with the motive to compare. Faftna purpose of, , « Comparison, it is necessary, data must be_, homogeneous. “>, oy, , 2. In singular sense (statsce (9S method): statistics deal with, =the collection, organisatjon presentation, analysis and, reanisetgh resentation, ——, interpretation of quagtita ive information. The given definition, ae, covers the followi portant features of ' statistical methods. _, (i) ai of data it is the main and the first ste ina, , stayati al enquiry. The technique of collection of data, , ends upon the objective of the study., iQ. rganisation of data: after collection, the data is, , oy organised in a proper form which involves editing and, classification., , e (iii) Presentation of data: after classification, the data is, , presented j in some suitable 1 manner, in the form of text,, table, diagram or graph., , Scanned with CamScanner

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ADR CLASSES, statistics, CHAPTER 2, , Analysis of data: after presentation of data, analysis is, done with the help of simple mathematical techniques., For example: central tendency, measures of dispersion,, . = correlation and regression etc. . VW, , (v) Interpretation of data: it is the last step in theo?, statistical mythology. The interpretation pro the, final conclusion drawn from the analyse’, , , , 7 FUNCTIONS OF STATISTICS oS, , 1. To simplify complex facts: it is very djffigutt for an individual, to understand and conclude from numerical data., = Statistical methods try to era complex data into simple ;, , and understandable form., . -2. To present facts in cio quantitative facts can easily, be believed and trus' comparison to abstract and, * qualitative facts. his summarizes the generalized facts, and presents in a definite form because we know that, qualitative gata is in infinite form., = 3. To mat gdinpaison of facts: comparison is one of the main, of statistics as the absolute figures convey a less, , fungtjo, § ‘ete meaning for comparison of data, various statistical, , - ethods like average, rates, percentages., {ro facilitate planning and policy formulation: on n the basis, (| . - of numerical data and their analysis, businessmen and, , administrators can plan future activities and shape their, ~ policies., , , , , , —<$, , Scanned with CamScanner

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ADR CLASSES, , statistics, , , , CHAPTER 2, , 5. To help in forecasting: as business is full of risks and, uncertainties, correct forecasting is essential to reduce the, uncertainties of business. Statistical tools helps in making, , projections for future. W, &, , IMPRTANCE OF STATISTICS, , 1. Importance to the government &, (i) Government collects the largest amounifSiausts for, various purposes. ve), (ii) The role of government has incre sgd and requires much, , oo greater information in the for, numerical figures, to, ~ = fulfil the welfare oi dition to the efficient, , _ running of their adminj ion., (iii) Ina democratic cou, ike India, various political groups, are also guided statistical analysis regarding their, popularity inde asses., = (iv) It can be eéXcluded that it is impossible to think”, functjoatn® of the modern government, in the absence of, statiits., 2. Impgr rence of statistics in economics, , . s Sc oeniuletion of economic laws: the famous ‘law of, demand’ and the concept of ‘Elasticity of demand’ have, , been developed by the inductive method of, , generalisation, which is also based on statistical, , principles. ., , Scanned with CamScanner

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ADR CLASSES, , statistics, , , , CHAPTER 2, , (ii) Help in understanding and solving an economic, problem: statistics data and statistical methods play a, vital role in understanding and solving economic, , - ~ pro9blems such as poverty, unemplayment, disparities, the distribution of income and wealth, etc. OY, , (iii) Study of market structures: study of perfect ~, , - competition, oligopoly, monopoly, etc. een statistical, comparison of market prices, cost and pre! of individual, - firms., , (iv) Help in establishing mathematjda/relation: statistical, methods can also be used to estitnate mathematical, relation between various ¢da6mic variables., , (v) Price analysis: statist; urveys of prices helps in, , = _ studying the theorig$ b prices, pricing policy and price, trends as well their relationship to the general problem, , of inflation. - 3. Importance ot eistcs in economic planning, (i) At ever age of economic planning, there is a need for, , 7 nai and statistical methods., (ii) “AUsing statistical techniques, it is possible to assess the, , Ww amounts of various resources available in the economy, . > and accordingly determine whether the specified rate of, v growth is sustainable or not., - (iii) So it is rather impossible to think of a situation where, economic planning can be done without the use of, statistical techniques. —, , Scanned with CamScanner