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1

STATISTICS:
Definitions, Characteristics and Scope

arrangement of data
In ancient times use of statistics was limited to the scope and
the
related to administration of government onlv, but in due course occupied an
now
utility of statistics have widened significantly. Statistics hassocial
economic, political, and natural
importarnt place in the study of all, i.e., the field of business
sciences. In this context, statistics has become very useful in finalise decisions
management also. The basic problem of the management is to provide help im
in the midst of uncertainty and statistical tools have capacity to
exaggeration to say
taking such decisions. According to Ya-Lun-Chou, "It is not the aid of statistical
with
that today nearly every decision in business is made
dataand statistical methods.
responsiblilities
Modern business has become increasingly complex and the As the size of
greater.
of business executives have become correspondingly management well informed
business unit increases, the task of keeping higher techniques play
methods and
becomes very important. Statistical data,information
significant role in providing quantitative in a precise and an
effective manner.
MEANING OF STATISTICS

The literal meaning of statistics is 'science related to numbers.'So, as a


subject, statistics is that branch ofknowledge which is related to numerical facts.
the Latin word 'Status' or
The word 'Statistics' seems to have been derived from
the Italian word 'Statista' or the German word 'StatistikAs or the French word
'Statistique', each of which means a Political State'. the king or the
army,
government had to collect diverse data related to population, employees,
form of a science
income-expenditure, etc., the subject of statistics started in the
of statecraft. Hence, in early times statistics was considered any sort of facts,
numerical or otherwise which reflected the conditions and prospectsasofmethod society
or state. But afterwards, its meaning changed and it was considered
or methods of dealing with numerical facts.
DEFINITIONS OF STATISTICS
From grammatical point of view, the word statistics is usedwhile in two
'Statistical data',
forms-plural and singular. In plural, it refers to basis, different definitions in
singular it means the 'science of statistics'. On this
of statistics can be divided into two parts and may be placed as follows:
Data
(I) Definitions ofStatistics in Plural Sens8e or Definitions of Statistical
In plural form, statistics mean data or numerical descriptions of facts. Some
important definitions based on this concept are as follows:
1 According toOord Concise Dictionary "STATISTICS" <treated as plural) : Numerical
facts, systematically collected, as statistics of population, crime, etc., (treated as singlular):
Science of collecting, classifying and using statistics.
4 SAHITYA BHAWAN PUBLICATIONS
decisions in the face of uncertainty related to a particular incident. The fact :
that in the context of various aspects and problerms related to practicsl
nOrations and research rational decisions are possible only through advanced
statistical techniques.
Conclusion :
After analysing various definitions of statistics as a science, we mav
conclude that:
"Statistics is both a science and an art. It is related to the
application of the principles and methods applicable in the collection study and
presentation, analysis, interpretation and forecasting of data or statistical facts
influenced byseveral factorsand related to any area of knowledge or research so
that concrete and intelligent decisions may be taken in the phase of uncertainty »
CHARACTERISTICS OF STATISTICs
Based on two concepts of statistics-statistical data and statistical
science its characteristics may also be divided in two groups as explained
below :
() Chracteristics of StatisticalData
According to H. Secrist. the salient features of statistical data are as
follows :
1.Statistics are aggregate of facts : Statistics are in the form of aggregate
of facts. It means any single figure or fact cannot be called statistics. For
example, despite being numerical facts, age ofa student,expenditure of afamily,
salary ofa worker cannot be called statistics. More than one figure is required
for data, ie., age of four students, expenditure of fifty families, salary of two
hundred workers, etc. Therefore,it is said that not a datum but the data are the
subject matter of statistics.
2. Statistics must be numerically expressed : Only those facts are included
in statistics, which may be expressed in terms of numbers. For example, if it is
said that Ram is rich and Shyam is poor, then it is not statistical data, but ifit
issaid that monthly income of Ram is Rs. 2,000 and that of Shyam is Rs. 200,
then this aggregate of facts will be called statistics.
3. Statistics are affected to a marked extent by multiplicity of causes :Only
those numerical facts are included in statistics, which are affected by multiple
factors, because only under such conditions, there will be need of statistical
analysis. For example, price level in a country is affected by several factors, such
as demand and supply of goods, quantity of money, government policy, etc.
4. Statistics are enumerated or estimated according to a reasonable
standard of accuracy : Collection of data may be either on the basis of
enumeration or on the basis of estimates. For example, population is
enumerated in India after every 10 years and only estimates are made for
intervening years. Areasonable standard of accuracy is also maintained in the
collection of data. However, this level is determined by the nature and objective
of the study. For example, to leave even a single person in the counting of
members ofa family may be a serious mistake, while in the population census
of a state leaving out even five hundred persons may not be so important.
5. Statistics are collected for a pre-determined purpose : The collection of
only such numerical facts will be called data, which is done for a pre-determined
objectives. Numerical facts collected without pre-determined and definite
objectives may be group of figures but cannot be considered as data.
5
STATISTICS (Definitions,Characteristics and Scope)
6. Statistics should be collected in a systematic manner : In order
maintan a reasonable level of accuracv in data. it is necessary that the
collection should be in a systematic manner It means that before the collection
of data, the objectiveof collection, area of studv. method of collection, etc., should
be properly decided.
7.Statistics are placed in relation toeach other ;An important objective o
the collection of data is comparison. Hence data should be such that may be
placed in comparable manner. For example, if we collect figures of the income
of A, height of B and wealth of C, they cannot be called data, since these three
facts cannot be presented comparably.
In the light of the above mentioned characteristics, it is said that "all the
statistical data are numerical facts but all numerical facts are not statistucal
data." ltmeans that if an aggregate of facts is statistical, then it must be
numerical, but it is not necessary that every numerical fact should be statistical
data. The numerical facts will be statistical facts only when they satisfy all the
characteristics of statistical data.
(1) Characteristics of Science of Statistics
In terms of science, the characteristics of statistics are as follows :
1. Statistics is a group of methods or techniques : In statistical science
several such methods and techniques are included which are used from
collection of data to the inference of Ãnal conclusion related to an investigation.
In these techniques collection, presentation, analysis and interpretation of data
are important.
2. Use of statistics is universal :In early stages, the use of statistics was
limited to government activities and to social sciences, but in modern times, the
use of statistical science is universal, as it is used in every branch of knowledge
and science.
3. Statistics deals with the aggregate of numerical facts : In statistics only
those subjects and aspects are studied and analysed, which may be presented
in the form of aggregate of numerical facts.
4. Statistics is both a science and an art : Statistics is not merely a science
but an art also. While on the one side, calculations are done with the help of
different statistical methods, on the other hand, several practical and applied
decisions are taken on the basis of these calculations and conclusions.
SCOPE AND DIVISIONS OF STATISTICS
From the point of view of the convenience of study, the scope and divisions
(subject-matter) of statistics may be divided into three parts : (I) Statistical
methods, (I) Divisions or classification of statistics, and () Application of
statistics.
() Statistical Methods
Statistical methods are those methods which are used to clarify numerical
facts. These methods simplify the complicated facts and highlight the basic truth
existing in these facts. There has been controversy about the number and
nomenclature of statistical methods, but, on the whole, they can be put as
follows :
1.Collection of Data :Collection of data is the first and basic statistical
method. Data are collected according to objectives and planning of investigation.
On the basis of collection, data can be classified into two groups Primarydata
and Secondary data. Primary data are also called original data. They are
collected by the researcher afresh from the beginning to the end. Secondary data
SAHITYA BHAWAN PUBLICATIONS
are already collected and published And the
requirements. In the collection of data it is researcher uses them as per his own
to whole area also decided whether data
followed.
(universe) of research will be
collected or sampling methodrelating
will be
2. Organisation of Data :
generally in organised form, butData collected from published sources are
the data collected from
organisation and systematisation. The first step in survey, etc., need
editing. This job should be done very carefully so that organisation of data i8
irrelevant and wrong computations may be avoided. After omissions, inconsistencies,
are classified. In classification, data are editing the data, they
of uniformity or common arranged in different groups on the basis
characteristics. The last step in organisation is
tabulation. The purpose of tabulation is to arrange the data in columns and
so that there is absolute clarity in the data rows,
properly in statistical analysis. presented and they may be used
3. Presentation : After the
are three important methods organisation of data, they are presented. There
of presentationa) Statistical Tables,
(b) Diagrams, and (c) Graphs.
4. Analysis : After presentation of data the next step is
There are numerous methods which are used in the analysisthat of analysis.
of data. Among
these, measures of central tendency, dispersion, skewness, correlation,
association, regression, time series, index numbers, interpolation,
extrapolation, sampling, etc., are worth-mentioning.
5. Interpretation : After analysis of data, the final stage is interpretation or
drawing conclusions from the data. From the point of view of the usefulness of
interpretation it is necessary that it should be done fairly, impartially and
intelligently.
6. Forecasting : With the help of statistical methods forecasting is also done
on the basis of past and present data.
(u) Divisions or Classification of Statistics
Practically, statistics can be divided into following broad divisions :
1. Descriptive Statistics : Descriptive statistics is related to numerical data
or facts. Such data are collected either by counting or by some other process of
measurement. They may be related to the universe for any subject or may be
obtained by sampling process. These data can give answer of certain questions
or can be used as raw material for other statistical methods.
On the whole, descriptive statistics is related to those methods, which are
used in the treatment of numerical facts for the purpose of describing their
original characteristics. These methods include editing of data, classification,
tabulation, diagrammatic or graphical presentation, measures of central
tendency, measures of dispersion, correlation, etc. All these methods help to
make the description of numerical facts simple, systematic, synoptic,
understandable and meaningful.
2. Inferential or Inductive Statistics : All those methods are placed in it
which help in making generalisations about the population or universe on the
basis of study of samples. It includes the process of drawing proper and rational
conclusion about the universe on the basis of analysis of samples, making
estimates and forecasting and various methods of decision-making. Among these
methods, probability theory and diferent techniques of sampling test are
important.
7
STATISTICS (Definitions,Characteristics and Scope)
3. Applied Statistics : It involves application of statistical methods ana
techniques to the problems and actual facts. For example, statistics related to
national income, industrial and agricultural production, population, price, etc.,
are called applied statistics. It can be further divided into two groups as follows :
(a) Descriptive Applied Statistics : It deals with the study of data which are
known and which naturally related either to the past or to the present for any
area, so that past or present positions of that area may be understood.
(b) Scientific Applied Statistics : Under this branch of statistical science,
scientific laws are formulated and confirmed on the basis of practical application
of statistical methods. For example, if an effort is made to establish the law of
demand on the basis of data about price and demand, then it will be a part of
scientific applied statistics.
() Application of Statistics
ln early stages, the scope of statistics was very limited. It was confined
mainly to the administration of government and was, therefore, called the
'science of kings. But in mnodern times, the scope of statistics has widened.
Usually, all those facts come in the purview of statistics, which are expressed in
quantitative terms directly or indirectly. That is why Croxton and Cowden
observed. "Today, there is hardly a phase of endeavour which does not find
statistical devices at least occasionally useful."
THEORETICAL QUESTIONS
(I) Long Answer Questions
1. Define Statistics and discuss in brief its nature and scope.
statistics.
2. Explain briefly what do you understand by the science of (UPTU, MBA 2006-07)
suitable examples.
3. Define Statistical Data. Point out their characteristics giving
facts numerically stated are
4. "Statistics are numerical statement of facts, but all
numerical statement of facts
not statistics." Discuss and point out briefly which
are statistics.
department of inquiry and
5. "Statistics are numerical statements of facts in any
discuss the characteristics of
placed in relation to each other." Comment and
statistics?
data by Bowley. This highlights
[Hint: The given statement is the definition of statistical
Statistical data relate to any area
the following three characteristics of data : (a) pre-determined objective
the need of
of investigation, i.e., they are collected to fulfil any objectives or work of research,
or investigation. If the facts are collected without
they cannot be called statistical data. (b) They are numerical statemnents -In
but only quantitative facts
practice, facts may be qualitative as well as quantitative in relation to each other-It
are called statistical data. (c) Which may be placed
a must in numerical facts. If we collect facts
means that uniformity or homogeneity is wealth of 'C", then they will not be called
about the income of 'A. height of B' and relation to each other.
statistical data because they cannot be placed in some other characteristics
definitiona)
There are two important limitations in this methods of statistics have not been
of statistics have been ignored, and (b) different
highlighted. mentioned alongwith a brief description of
In the end, definition of Secrist should be
different characteristics of statistical data.]
presentation, analysing and interpretation
6. "Statistics can be defined as collection,
of numerical data." Explain.
statistics given by Croxton and Cowden. In
Hint: The above statement is the definition of of collection, presentation, analysis and
explaining this statement the methods under the heading of 'scope' of
interpretation should be discussed in detail as given should also
other definitions of statistics
statistics' in this chapter. Afterwards, some
be mentioned.]

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