SCOPE of STATISTICS In modern times the scope of statistics has become so wide that it is hardly possible to find a field where statistical methods are not used. The importance of statistics in various fields are given below 1.Business and Industry Statistics is an aid to business and commerce. When a person enters business, he enters in to the profession of forecasting. Modem statistical devices have made business forecasting more precise and accurate. A business man needs statistics right from the time he proposes to start business. For example, before putting his product in the market the business man should know the probable demand of the commodity .so he must make careful studies of seasonal variations in the habits and tastes of the people. 2.Business Management One of the important functions of business management is to coordinate the activities of the various departments so as to secure maximum efficiency with minimum effort. Modem Statistical tools of collection, classification, tabulation, analysis and interpretation of data have been found to be an important aid in making wise decision at various levels of business management which includes the quality of sales forecasts, market research, consumer preference studies etc 3.Economics In the field of economics it is almost impossible to find a problem which does not require an extensive use of statistical data. The laws of economics like law of demand, law of supply etc, can be considered true with the help of statistical methods. Without statistics many theories of economics remained closed to mankind. 4.Administration or to the Government Statistics are the ayes of govemment administration. For efficient administration goverment have to depend on statistics. The government administration is run through budgets which are formulated on the basis of Statistics. Our five year plans are formulated with the help of statistical methods. 5.Research Modern statistical methods and data are being found increasingly useful in fesearch in different fields (science, economics, business, etc) 6.Planning Modem age is an age of planning. For planning to be successful statistical data are necessary7. Bankers brokers and insurance companies: A banker has to make statistical study of business cycles . The stock exchange brokers, speculators, investors, etc have to rely on statistical data for precise forecasting. The success of insurance company depends on the accurate basic data that it uses for the calculation of premium rates etc. LIMITATIONS OF STATISTICS 1.Statistics studies only numerical facts Statistics are numerical statements of facts. Therefore qualitative characteristics like honesty intelligence etc can not be studied directly with statistics. 2 Statistics does not study individual cases Statistics studies only the aggregate of facts. It does not study any particular unit 3.Statistical results are true only on an averago Law of statistics are not universally true like the laws of physics. They are true only in general. 4, Statistics does not reveal the entire story of the problem Itis not always possible to examine a problem in all its aspects by a Statistical approach. 5.Statistics is only one of the mathods of studying a problem In many cases statistics fails to suggest solution to certain problems. Qualitative aspects of a problem can not be studied with the help of statistics. 6. Statistics can be misused Any person can misuse statistics and draw any type of conclusion he likes. In reality statistical methods can be properly used only by trained people. It required skill and experience to draw sensible conclusions from the data. 7. Only means and not a solution Statistics are only a means for finding the solution of any problem. It is not a solution to the problem.DISTRUST OF STATISTICS By distrust of statistics we mean lack of confidence in statistical statements and statistical methods. Dus to the ignorance of the public as well as the misuse of statistics by interested parties, this useful science has been blamed. We are often misled by gkilful talkers and writers who deceive us with incorrect facts. Therefore we come to distrust statistics. MISUSE OF STATISTICS By misuse of statistics we mean using incomplete and incorrect information and inappropriate statistical methods. Quoting figures without knowing their context , generalizing from the part ta the whole, listing out only those evants which are favourable to an argument ete, are some of the ways of misusing Statistics. statistics is a clay out of which you can make 4 God or a Devil. It means statistics are misused by selfish people. DIVISIONS OF STATISTICS The science of statistics can be divided in to three broad divisions 1.Theoretical Statistics 2.Statistical Methods 3. Applied Statistics 1.Theoretical Statistics When mathematical theary forms the basis of the science of statistics it is called Theoretical statistics 2.Statistical Methods. Statistical methods are methads by which data are collected and they are organized , presented, analysed and interpreted. Statistical methods can be divided into two groups A. Descriptive statistics B. Inferential statistics Descriptive Inferential Makes inferences about the Describe the data in some population manner Using the data N=1000 Sample = 50 (total frequency) 1in2 50% of the people who commute through metre prefer to wear branded shoesFrom the above, our population is 1000 people commute through metro, we select a sample of 50 and make the study and reach the condusion that every second person are wearing branded shoes (1 in 2)(Itis descriptive statistics).From this observation if we try to infer about the population that 50% of the population commute through metro prefer to wear branded shoes,( itis inferential statistics.) 3. Applied Statistics It consist of application of statistical methods and techniques to the problem and facts as they exists.