[Link] is Statistics?

Statistics is simply the study of numerical data, facts, figures and measurements. Statistics is
used to convert raw numerical data into useful information for relevant users.
Statistics is a branch that deals with every aspect of the data. Statistical knowledge helps to
choose the proper method of collecting the data and employ those samples in the correct analysis
process in order to effectively produce the results.
Business Statistics refers to the application of statistical tools and techniques to business and
managerial problems for the purpose of decision making.
An example of statistical analysis is when we have to determine the number of people in a
town who watch TV out of the total population in the town. The small group of people is called
the sample here, which is taken from the population.
[Link] Characteristics of Statistics
1. It consists of aggregates of facts
2. It is affected by many causes
3. It should be numerically expressed
4. It must be enumerated or estimated accurately
5. It should be collected in a systematic manner
6. It should be collected for a predetermined purpose
7. It should be capable in relation to each other
1. It consists of aggregates of facts:
In the plural sense, statistics refers to data, but data to be called statistics must consist of
aggregate of certain facts. A single and isolated fact or figure like, 60 Kgs. weight of a student or
the death of a particular person on a day does not amount to statistics.
2. It is affected by many causes:
It is not easy to study the effects of one factor only by ignoring the effects of other factors. Here
we have to go for the effects of all the factors on the phenomenon separately as well as
collectively, because effects of the factors can change with change of place, time or situation.
3. It should be numerically expressed:
A data to be called statistics should be numerically expressed so that counting or measurement of
data can be made possible. It means that the data or the fact to constitute statistics must be
capable of being expressed in some quantitative form as weights of 60, 70, 100 and 90 Kg. or
profits of Rs. 10,000, Rs. 20,000 etc. Thus these data must contain numerical figures so that
those may be called as numerical statement of facts.
4. It must be enumerated or estimated accurately:
As stated above that the statements should be precise and meaningful. For getting reasonable
standard of accuracy the field of enquiry should not be very large. If it is infinite or very large,
even enumeration of data is impossible and reasonable standard of accuracy may not be
achieved.
5. It should be collected in a systematic manner:
Another characteristic of statistics is that the data should be collected in a systematic manner.
The data collected in a haphazard manner will lead to difficulties in the process of analysis, and
wrong conclusions.
6. It should be collected for a predetermined purpose:
Before we start the collection of data, we must be clear with the purpose for which we are
collecting the data. If we have no information about its purpose, we may not be collecting data
according to the needs.
7. It should be capable in relation to each other:
It is last but not less important of the characteristics of the statistics. The collection of data is
generally done with the motive to compare. If the figures collected are not comparable, in that
case, they lose a large part of their significance.
[Link] is a science or an art, what is the nature of statistics? (khata)
4. function of statistics
Functions of Statistics:
1. To Present Facts in Definite Form:
We can represent the things in their true form with the help of figures. Without a statistical study,
our ideas would be vague and indefinite.
The facts are to be given in a definite form. If the results are given in numbers, then they are
more convincing than if the results are expressed on the basis of quality.
2. Comparisons:
After simplifying the data, it can be correlated as well as compared. The relationship between the
two groups is best represented by certain mathematical quantities like average or coefficients etc.
Comparison is one of the main functions of statistics as the absolute figures convey a very less
meaning.
3. Formulation and Testing of Hypothesis:
These statistical methods help us in formulating and testing the hypothesis or a new theory. With
the help of statistical techniques, we can know the effect of imposing tax on the exports of tea on
the consumption of tea in other countries. The other example could be to study whether credit
squeeze is effective in checking inflation or not.
4. Forecasting:
Statistics is not only concerned with the above functions, but it also predicts the future course of
action of the phenomena. We can make future policies on the basis of estimates made with the
help of Statistics. We can predict the demand for goods in 2005 if we know the population in
2004 on the basis of growth rate of population in past. Similarly a businessman can exploit the
market situation in a successful manner if he knows about the trends in the market. The statistics
help in shaping future policies.
5. Policy Making:
With help of statistics, we can frame favorable policies. How much food is required to be
imported in 2007? It depends on the food-production in 2007 and the demand for food in 2007.
Without knowing these factors, we cannot estimate the amount of imports. On the basis of
forecast the government forms the policies about food grains, housing etc. But if the forecasting
is not correct, then the whole set up will be affected.
6. To Measure Uncertainty:
Future is uncertain, but statistics help the various authorities in all the phenomenon of the world
to make correct estimation by taking and analyzing the various data of the part. So the
uncertainty could be decreased. As we have to make a forecast, we have also to create trend
behaviors of the past, for which we use techniques like regression, interpolation and time series
analysis.
[Link] of Statistics
1. Statistics and planning
Statistics in indispensable in planning in the modern age which is termed as the age of planning.
Almost all over the world the govt. is re-storing to planning for economic development.
2. Statistics in business and management
Statistics are very useful to businessmen. It helps businessmen in formulating policies regarding
business and forecasting future trends. Statistics is an irresponsible tool for production control.
Business executive are relying more and more on statistical techniques for studying the much
and desire of the valued customers.
Modern business has its roots in the accuracy and precision of the estimates and statistical
forecasting regarding the future demand for the product, market trends and so on Correct
estimation and decision making of the businessmen depend upon his experience and proper use
of statistical methods.
3. Statistics and economics
Statistical data and techniques of statistical analysis have to immensely useful in involving
economical problem. Such as wages, price, time series analysis, demand analysis.
4. Statistics and industry
In industry, statistics are widely used in quality control. In production engineering to find out
whether the product is conforming to the specifications or not. Statistical tools, such as
inspection plan, control chart etc.
5. Statistics and modern science
In medical science, the statistical tools for collection, presentation, and analysis of observed facts
relating to causes and incidence of disease and the result of application various drugs and
medicine are of great importance.
6. Statistics in research
Statistical methods are extensively used in every type of research work. Whether it is agriculture,
health, or social science, the statistics help in carrying out different types of researches.
In agriculture, the yield of the crop with different kinds of seeds, fertilizers, etc. can be examined
with the help of appropriate statistical tools.
Similarly, statistics are of great help to insurance companies, industries physical science,
banking, railways, transportation, astronomy, etc. Hence, we can conclude that nowadays there is
hardly any sphere of human activity where statistics have not been used.

Primary Data Secondary Data

Definition

Primary data are those data that are collected for the first Secondary data refer to those data that
time. have already been collected by some other
person.

Originality

These are original because these are collected by the These are not original because someone
investigator for the first time. else has collected these for his own
purpose.

Nature of Data

These are in the form of raw materials. These are in the finished form.

Source
 It can be collected using various methods like interviews, It can be obtained from the internet,
experiments, etc. journals, etc.

Time and Money

Collecting primary data is quite expensive both in the terms Secondary data requires less time and
of time and money. money; hence it is economical.

Examples:

An example of primary data is the national census data an example of secondary data is the data
collected by the government. collected from online sources.