Introduction to

Statistics
Science of collection,
presentation, analysis, and
reasonable interpretation of
data.

Statistics
Collection – gathering of
data
Presentation and analysis
– how data are presented
and organized
Interpretation – drawing
conclusions from the given
data or informations
Statisticspresents a rigorous scientific method
for gaining insight into data. For example,
suppose we measure the weight of 100 patients
in a study. With so many measurements, simply
looking at the data fails to provide an
informative account. However statistics can give
an instant overall picture of data based on
graphical presentation or numerical
summarization irrespective to the number of
data points. Besides data summarization,
another important task of statistics is to make
inference and predict relations of variables.
“The science of kings, political and science of
statecraft.” 
“Statistics is the science of counting.”
“The science of averages.” –AL BOWLEY
“The science of estimate and probabilities.” –
PROF BODDINGTON
“The science of statistics is the method of
judging collection, natural or social
phenomena from the results obtained from
the analysis or enumeration or collection of
estimates.” – WI KING

Different definitions
“Statisticsare the numerical statement of
facts capable of analysis and
interpretation and the science of statistics
is the study of the principles and the
methods applied in collecting, presenting,
analysis and interpreting the numerical
data in any field of inquiry.”
A Taxonomy of Statistics
A Brief History
 - derived from the Latin
word “status” or the
Italian word “statista,”
and meaning of these
words is “political state”
or “government

Statistics
In the past,  statistics was used
by rulers. The application of
statistics was very limited, but
rulers and kings needed
information about land,
agriculture, commerce,
populations of their states to
assess their military potential,
their wealth, taxation and other
aspects of government.
Statistics may be said to have its
origin in census counts taken
thousands of years ago; as a distinct
scientific discipline, however, it was
developed in the early 19th century
as the study of populations,
economies, and moral actions and
later in that century as the
mathematical tool for analyzing such
numbers. 
Gottfried Achenwall
used the word statistik
at a German university
in 1749 to mean the
political science of
different countries.
In 1771 W. Hooper (an Englishman) used
the word statistics in his translation of
Elements of Universal Erudition written by
Baron B.F Bieford. In his book, statistics
was defined as the science that teaches us
the political arrangement of all the
modern states of the known world. There
is a big gap between the old statistics and
modern statistics, but old statistics is also
used as a part of present-day statistics
During the 18th century,
English writers used the word
statistics in their works, so
statistics has developed
gradually during the last few
centuries. A lot of work was
done at the end of the
nineteenth century.
At the beginning of the 20th
century, William S. Gosset
developed the methods for decision
making based on small sets of data.
During the 20th century, several
statisticians were active in
developing new methods, theories
and applications of statistics. These
days, the availability of electronics is
certainly a major factor in the
modern development of statistics.
Statistics are aggregates of facts.
Statistics are numerically expressed.
Statistics are affected to a marked extent by
multiplicity of causes.
Statistics are enumerated or estimated
according to a reasonable standard of accuracy.
Statistics are collected for a predetermined
purpose.
Statistics are collected in a systemic manner.
Statistics must be comparable to each other.

Characteristics of Statistics
 (1) Statistics laws are true on average. Statistics are
aggregates of facts, so a single observation is not a
statistic. Statistics deal with groups and aggregates only.
 (2) Statistical methods are best applicable to quantitative
data.
 (3) Statistics cannot be applied to heterogeneous data.
 (4) If sufficient care is not exercised in collecting,
analyzing and interpreting the data, statistical results
might be misleading.
 (5) Only a person who has an expert knowledge of
statistics can handle statistical data efficiently.
 (6) Some errors are possible in statistical decisions. In
particular, inferential statistics involves certain errors. We
do not know whether an error has been committed or not.

Limitations of Statistics
(1) Statistics helps in providing a better understanding and
accurate description of nature’s phenomena.
(2) Statistics helps in the proper and efficient planning of a
statistical inquiry in any field of study.
(3) Statistics helps in collecting appropriate quantitative
data.
(4) Statistics helps in presenting complex data in a suitable
tabular, diagrammatic and graphic form for an easy and
clear comprehension of the data.
(5) Statistics helps in understanding the nature and pattern
of variability of a phenomenon through quantitative
observations.
(6) Statistics helps in drawing valid inferences, along with a
measure of their reliability about the population parameters
from the sample data.

Uses of Statistics
Importance/Application
of Statistics
Statistics plays a vital role in every field of
human activity. Statistics helps in
determining the existing position of per
capita income, unemployment, population
growth rates, housing, schooling medical
facilities, etc., in a country.
Statisticsplays an important role in business. A
successful businessman must be very quick and
accurate in decision making. He knows what his
customers want; he should therefore know what to
produce and sell and in what quantities.

Statistics helps businessmen to plan production

according to the taste of the customers, and the
quality of the products can also be checked more
efficiently by using statistical methods. Thus, it can
be seen that all business activities are based on
statistical information. Businessmen can make
correct decisions about the location of business,
marketing of the products, financial resources, etc.
(1)
  Business
 Economics largely depends upon statistics.
National income accounts are multipurpose
indicators for economists and administrators,
and statistical methods are used to prepare
these accounts. In economics research,
statistical methods are used to collect and
analyze the data and test hypotheses. The
relationship between supply and demand is
studied by statistical methods; imports and
exports, inflation rates, and per capita income
are problems which require a good knowledge
of statistics.

(2) Economics
Statistics plays a central role in almost all natural and
social sciences. The methods used in natural sciences
are the most reliable but conclusions drawn from them
are only probable because they are based on incomplete
evidence.

Statistics helps in describing these measurements more

precisely. Statistics is a branch of applied mathematics.
A large number of statistical methods like probability
averages, dispersions, estimation, etc., is used in
mathematics, and different techniques of pure
mathematics like integration, differentiation and algebra
are used in statistics.
 
(3) Mathematics
Statistics plays an important role in
banking. Banks make use of statistics for a
number of purposes. They work on the
principle that everyone who deposits their
money with the banks does not withdraw
it at the same time. The bank earns profits
out of these deposits by lending it to
others on interest. Bankers use statistical
approaches based on probability to
estimate the number of deposits and their
claims for a certain day.

(4) Banking
Accounting is impossible without exactness.
But for decision making purposes, so much
precision is not essential; the decision may
be made on the basis of approximation, know
as statistics. The correction of the values of
current assets is made on the basis of the
purchasing power of money or its current
value.
In auditing, sampling techniques are
commonly used. An auditor determines the
sample size to be audited on the basis of
error.
(6) Accounting and Auditing
Statistics is essential to a country. Different
governmental policies are based on statistics.
Statistical data are now widely used in making all
administrative decisions. Suppose if the government
wants to revise the pay scales of employees in view
of an increase in the cost of living, and statistical
methods will be used to determine the rise in the
cost of living. The preparation of federal and
provincial government budgets mainly depends upon
statistics because it helps in estimating the expected
expenditures and revenue from different sources. So
statistics are the eyes of the administration of the
state. 
(5) State Management
(Administration)
Statistics plays a vital role in almost all
the natural and social sciences. Statistical
methods are commonly used for analyzing
experiments results, and testing their
significance in biology, physics, chemistry,
mathematics, meteorology, research,
chambers of commerce, sociology,
business, public administration,
communications and information
technology, etc.

(7) Natural and Social Sciences

Astronomy is one of the oldest branches of
statistical study; it deals with the measurement of
distance, and sizes, masses and densities of
heavenly bodies by means of observations. During
these measurements errors are unavoidable, so
the most probable measurements are found by
using statistical methods.
Example: This distance of the moon from the
earth is measured. Since history, astronomers
have been using statistical methods like method
of least squares to find the movements of stars.

(8) Astronomy
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