NOTES
CONCEPT OF ECONOMICS & SIGNIFICANCE
OF STATISTICS IN ECONOMICS
This chapter will primary give you the answer of "why statistics will
be included in economics" ?
consumption
Production Economic activities
Saving It is an activity which is related to the use of
Investment scarce resources (scarce means)
economics → by Alfred marshall
" the study of mankind in the ordinary business of life"
Economic Activites
economics → by Robbins
A science that studies human behaviour as a relationship b/w ends
and scarce means which have alternative uses"
What is Statistics?
In simple words, Statistics means Quantitative information or
Quantification of facts and findings
In numeric terms (numbers)
expression or measurement
CLASS 11 STATISTICS
NOTES
CONCEPT OF ECONOMICS & SIGNIFICANCE
OF STATISTICS IN ECONOMICS
Statistics - A plural noun or numerical data
In its plural sense, Statistics refers to information in terms of numbers
or numerical data. such as, poverty statistics, employment statistics,
population statistics etc.
Note: any numerical information is not statistics
For Example "Gaurav has 1000 rupees left in his pocket on month end"
is not an statistics (it is neither an aggregate nor an average) whereas, the
average month and pocket size of an adult is 1000 is an statistics.
So,
All statistics are data, but all data care not statistics.
Statistics - in plural sense
by Bowley
"Statistics are numerical Statements of facts in any department of
enquiry placed in relation to each other".
by Kendall and Yule
"Quantitative data affected to the market marked extent by
multiplicity of causes"
CLASS 11 STATISTICS
NOTES
CONCEPT OF ECONOMICS & SIGNIFICANCE
OF STATISTICS IN ECONOMICS
Features in plural sense
1) Aggregate of facts
Single or random numbers does not constitute statistics as no &
conclusion can be drawn from it It is only the aggregates of factors
that conclude Statistics .
2) Numerically expressed
Must be in terms of numbers. Qualities such as small, big , poor or
rich should not be considered as statistics.
3) Multiplicity of causes
Stats are not influenced by anyone factors, but there are many
factors that influenced it. Because if they had been attached with one
factor only then by removing that factor will leave the data
meaningless.
4) Reasonably Accurate
5) Must be mutally related and comparable.
6) Pre-determined objective They are collected with some pre
determined purpose . Any information collected without an objective
is just a numerical data.
CLASS 11 STATISTICS
NOTES
CONCEPT OF ECONOMICS & SIGNIFICANCE
OF STATISTICS IN ECONOMICS
Statistics A singular noun or Statistical methods
Statistics is a science of statistical methods. It refers to the
techniques or methods of collection, classification, presentation,
analysis and pre interpretation of quantitative data
Interpretation
Analysis
Presentation
Organisation
Collection
1 2 3 4 5
In systamatic manner Finding
average or %
In graphs diagrams and table Draw out conclusion
CLASS 11 STATISTICS
NOTES
CONCEPT OF ECONOMICS & SIGNIFICANCE
OF STATISTICS IN ECONOMICS
Statistical tools Standard techniques or methods used in each stage
of statistical study.
Example Graphs, Tables is a statistical tool used for presentation of
data.
Scope of Statistics
Nature of Statistics {It is both science as well as art}
it studies numerical data in a helps us to relate the data to realise
scientific and systematic manner and analyse real life problems
Subject matter of Statistics
Descriptive Inferential
it refers to those methods it refers to all such methods
which are used in collection, by which conclusion are
presentation as well as drawn relating to the universe
analysis of data or population on the basis of
given sample
this includes data of each
and every element of the
given population
Note - Universe or population in statistics
It refers to the aggregate of all items or units relating to any subject
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CLASS 11 STATISTICS
NOTES
CONCEPT OF ECONOMICS & SIGNIFICANCE
OF STATISTICS IN ECONOMICS
Limitations of Statistics
1) Study of aggregate only
2 Study of numerical data only.
3)No study of hetrogeneous data.
4)Results are true only as a average.
5) Can't be carried on by results without reference
6) only for experts
7) Most likely misused
(as they are not black or white they are always grey)
Importance or functions of Statistics
1)Quantitative expression of economic problems
poverty, unemployment etc
2)Inter-sectoral and Inter- temporal comparision - Through statistical
methods it becomes feasiably possible to comparision between the
data of different years (temporal) and also in between different
sectors of same time/year.
(Sectoral)
3) Establising cause and effect relationship
4) Policy formation
5) Helps in fore casting,
6) Establishing economic models (like, demand function
consumption function, etc)
CLASS 11 STATISTICS
