Nature, Scope, Functions and Limitations of Statistics

Statistics for Management

1. CHARACTERISTICS
AGGREGATE of FACTS.
AFFECTED to a marked extent by a
MULTIPLICITY of CAUSES.
NUMERICALLY EXPRESSED.
ENUMERATED or ESTIMATED.

2. CHARACTERISTICS…
REASONABLE STANDARD
OF ACCURACY.
SYSTEMATIC MANNER.
PREDETERMINED
PURPOSE.
PLACED IN RELATION
WITH EACH OTHER

3. STATISTICS AS STATISTICAL METHOD
(SINGULAR SENSE):
Definition by Croxtonand Cowden:
“Statisticsmaybedefinedasthescienceof
collection,presentation,analysisand
interpretationofnumericaldata.”

4. INFERENCES….
Collection of
Data.
Organisation
and
Presentation
of Data.
Analysis of
Data.
Interpretation
of Data.

5. FUNCTIONS OF STATISTICS
To present facts in a
proper form.
To simplify the complex
data.
To provide the
technique for making
comparison.
To formulate policies in
different fields.
To study relationship
between different
phenomena.
To forecast future
values.
To measure uncertainty.
To test a hypothesis.
To draw valid
inferences.

7. Use of Statistics in Business and Management
Marketing
Production
Finance
Banking
Investment
Purchase
Accounting
Control

8. LIMITATIONS.
Statistics deals
only with the
quantitative
characteristics.
Statistics does
not deal with
individuals.
Statistical laws
are not exact.
Statistical
results are true
only on an
average.
Statistics is only
one of the
methods of
studying a
problem.
Statistics can be
misused.