Statistics assignment

Statistics is a basic and important tool for professionals in all fields all over the worlds. This document provides the importance and scope of Statistics in major fields of study like a business, management, planning etc.

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STATISTICS
ASSIGNMENT

Topic: Statistics and its Scope

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INTRODUCTION
Every day we come across different types of quantitative information in newspapers,
magazines, over radio and television. For example, we may hear or read that India showed
a decadal growth rate of 17.64 % from 2001 to 2011, the Adult literacy rate increased to
74.04% with a decadal growth of 9.21% during the same period etc. We would like to
know what these figures mean. These quantitative information or expression is known as
statistical data or, simply, statistics.
The term “statistics” is used in two senses: first in plural sense meaning a collection of
numerical facts or estimates—the figure themselves. It is in this sense that the public
usually think of statistics, e.g., figures relating to population, profits of different units in an
industry etc. Secondly, as a singular noun, the term ‘statistics’ denotes the various methods
adopted for the collection, analysis and interpretation of the facts numerically represented.
In singular sense, the term ‘statistics’ is better described as statistical methods. In our study
of the subject, we shall be more concerned with the second meaning of the
word ‘statistics’.

DEFINITION OF STATISTICS
Statistics is the studies of how to collect, organize, analyze, and interpret numerical
information from data. Descriptive statistics involves methods of organizing, picturing and
summarizing information from data. Inferential statistics involves methods of using
information from a sample to draw conclusions about the population.
In other words, Statistics is concerned with scientific methods for collecting, organizing,
summarizing, presenting and analyzing data as well as deriving valid conclusions and
making reasonable decisions on the basis of this analysis. Statistics is concerned with the
systematic collection of numerical data and its interpretation.
Definition by Bouly: Statistics are numerical statement of facts in any department of
enquiry placed interrelation to each other.

Definition by Conner: Statistics are measurement, enumerations or estimates of natural or
social phenomena systematically arrangement to exhibit their inner relation.

Definition by Youle & Kendal: By Statistics we mean quantitative data affected to a
marked extend by a multiplicity of causes.

Definition by R.A. Fisher: The science of Statistics is essentially a branch of applied
mathematics and can be regarded as a mathematics applied to observation data.

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Definition by Croxton and Cowden: Statistics may be defined as the science of
collection, presentation analysis and interpretation of numerical data from the logical
analysis. It is clear that the definition of statistics by Croxton and Cowden is the most
scientific and realistic one.
According to this definition there are four stages:
1. Collection of Data: It is the first step and this is the foundation upon which the
entire data set. Careful planning is essential before collecting the data. There are
different methods of collection of data such as census, sampling, primary,
secondary, etc., and the investigator should make use of correct method.
2. Presentation of data: The mass data collected should be presented in a suitable,
concise form for further analysis. The collected data may be presented in the form of
tabular or diagrammatic or graphic form.
3. Analysis of data: The data presented should be carefully analyzed for making
inference from the presented data such as measures of central tendencies, dispersion,
correlation, regression etc.,
4. Interpretation of data: The final step is drawing conclusion from the data collected.
A valid conclusion must be drawn on the basis of analysis. A high degree of skill
and experience is necessary for the interpretation.

FUNCTIONS OF STATISTICS
The functions of statistics may be enumerated as follows:
1. To present facts in a definite form:
Without a statistical study our ideas are likely to be vague, indefinite and hazy, but
figures help as to represent things in their true perspective. For example, the
statement that some students out of 1,400, who had appeared, for a
certain examination, were declared successful would not give as much information
as the one that 300 students out of 400 who took the examination were declared
successful.

2. To simplify unwieldy and complex data :
It is not easy to treat large numbers and hence they are simplified either by taking a
few figures to serve as a representative sample or by taking average to give a bird’s
eye view of the large masses. For example, complex data may be simplified by
presenting them in the form of a table, graph or diagram, or representing it
through an average etc.

3. To use it as a technique for making comparisons:
The significance of certain figures can be better appreciated when they are

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compared with others of the same type. The comparison between two different
groups is best represented by certain statistical methods, such as
average, coefficients, rates, ratios, etc.

4. To enlarge individual experience:
An individual’s knowledge is limited to what he can observe and see; and that is a
very small part of the social organism. His knowledge is extended n various ways by
studying certain conclusions and results, the basis of which are numerical
investigations. For example, we all have general impression that the cost of living
has increased. But to know to what extent the increase has occurred, and how far the
rise in prices has affected different income groups, it would be necessary to
ascertain the rise in prices of articles consumed by them.

5. To provide guidance in the formulation of policies:
The purpose of statistics is to enable correct decisions, whether they are taken by a
businessman or Government. In fact statistics is a great servant of business in
management, governance and development. Sampling methods are employed in
industry in tackling the problem of standardization of products. Big business houses
maintain a separate department for statistical intelligence, the work of which is to
collect, compare and coordinate figures for formulating future policies of the firm
regarding production and sales.

6. To enable measurement of the magnitude of a phenomenon:
But for the development of the statistical science, it would not be possible to
estimate the population of a country or to know the quantity of wheat, rice and other
agricultural commodities produced in the country during any year.


IMPORTANCE OF STATISTICS
These days statistical methods are applicable everywhere. There is no field of work in
which statistical methods are not applied.
According to A L. Bowley, ‘A knowledge of statistics is like a knowledge of foreign
languages or of Algebra, it may prove of use at any time under any circumstances”. The
importance of the statistical science is increasing in almost all spheres of knowledge, e g.,
astronomy, biology, meteorology, demography, economics and mathematics.
Economic planning without statistics is bound to be baseless.
Statistics serve in administration, and facilitate the work of formulation of new policies.
Financial institutions and investors utilise statistical data to summaries the past experience.
Statistics are also helpful to an auditor, when he uses sampling techniques or test checking

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to audit the accounts of his client.

LIMITATIONS OF STATISTICS
The scope of the science of statistic is restricted by certain limitations:
1. The use of statistics is limited numerical studies: Statistical methods cannot be
applied to study the nature of all type of phenomena. Statistics deal with only
such phenomena as are capable of being quantitatively measured and
numerically expressed. For, example, the health, poverty and intelligence of a
group of individuals, cannot be quantitatively measured, and thus are not
suitable subjects for statistical study.

2. Statistical methods deal with population or aggregate of individuals rather than
with individuals. When we say that the average height of an Indian is 1 meter
80 centimeters, it shows the height not of an individual but as found by the
study of all individuals.

3. Statistical relies on estimates and approximations: Statistical laws are not
exact laws like mathematical or chemical laws. They are derived by taking a
majority of cases and are not true for every individual. Thus the statistical
inferences are uncertain.

4. Statistical results might lead to fallacious conclusions by deliberate
manipulation of figures and unscientific handling. This is so because statistical
results are represented by figures, which are liable to be manipulated. Also the
data placed in the hands of an expert may lead to fallacious results.

SCOPE OF STATISTICS
Statistics is useful in every sphere of life and activities. The methods and ideas of statistics
are so widely used nowadays that we can’t imagine our life and different activities without
statistics.
Statistics is not a mere device for collecting numerical data, as a means of developing
sound techniques for their handling analyzing and drawing valid inferences from them.
Statistics is applied in every sphere of human activity – social as well as physical – like
Biology, Commerce, Education, Planning, Business Management, Information
Technology, etc.

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It is almost impossible to find a single department of human activity where statistics cannot
be applied.
Statistics and Planning:
Statistics in indispensable into planning in the modern age which is termed as “the age of
planning”. Almost all over the world the govt. are re-storing to planning for economic
development. Planning is the logical combination of vision, goals, objectives, strategies,
policies, etc. An efficient planning is needed for efficient working. Statistics helps to get
the necessary information about the planning. The success of any planning depends upon
the current and sound analysis of statistical data. Efficient planning can’t be imagined
without statistics.
Statistics and Economics:
Statistical data and techniques are useful in economic analysis. Statistical analyses are used
in solving different economic problems such as consumptions, production, distribution,
investment, unemployment, etc. Index no. , Time series analysis, demand analysis,
forecasting techniques, etc, are some tools in statistics which are frequently used in
economics.
Statistics and Industry
In industry statistics is widely used in equality control. In production engineering it is used
to find out whether the product is confirming to the specifications or not with the help of
statistical tools, such as inspection plan, control chart etc.

Statistics and Mathematics
It should seem obvious that statistics plays a key role in mathematics considering it’s a
branch of applied mathematics. However, statistics is in more than just its own separate
branch of math. You can find statistical techniques in integration, differentiation, and
algebra, and you can find those in statistics as well. Much of math is based on probability
and theories, and statistical methods help make those mathematical theories that much
more accurate. Using averages, dispersions, and estimation allows you to come up with
conclusions that are closer to the real answer than just taking a wild guess.


Statistics and Modern Science
In medical science the statistical tools for collection, presentation and analysis of observed
facts relating to causes and incidence of dieses and the result of application various drugs
and medicine are of great importance.

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Statistics and Natural and Social Sciences
Biology, physics, chemistry, meteorology, sociology, communication, and even
information technology all use statistics. For many of these categories, the use of
statistics in that field involves collecting data, analyzing it, coming up with a hypothesis,
and testing that hypothesis.
In biology, the use of statistics within that field is known as biostatistics, biometry, or
biometrics. Biostatistics often involves the design of experiments in medicine,
agriculture, and fishery. It also involves collecting, summarizing, and analyzing the data
received from those experiments as well as the decided results. Medical biostatistics is a
separate branch that deals mainly with medicine and health.
Physics uses probability theory and statistics dealing mainly with the estimation of large
populations. In fact, the phenomenological results of thermodynamics were developed
using the mechanics of statistics
There are further examples of statistics in these sciences fields including analytical
chemistry, which involves the presentation of problems in data analysis and
demonstrating steps to solve them. Meteorology uses statistics in stochastic-dynamic
prediction, weather forecasting, probability forecasting, and a number of other fields.
Sociology uses statistics to describe, explain, and predict from data received. Like many
of the sciences, communication uses statistical methods to communicate data received.
Information technology also uses statistics to predict particular outcomes.

Statistics and Astronomy
It is impossible to take out a ruler and measure the distance of the Earth from the sun.
Instead, astronomers use estimates and mathematical theories to devise their best guess to
just how far items in the universe are away from each other. This is why when you read a
news report that a star will likely be going supernova “any day now,” you have to
understand that “any day now” could mean tomorrow, a year from now, or even ten
thousand years from now

Statistics, Psychology and Education:
In education and physiology statistics has found wide application such as, determining or
to determine the reliability and validity to a test, factor analysis etc.

Statistics and War

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In war the theory of decision function can be a great assistance to the military and personal
to plan “maximum destruction with minimum effort.”
Statistics and Research
One cannot think of undertaking any research activities without using statistics. Primarily,
statistical techniques are used for collecting information in any research. Besides, statistical
methods are used for analysis and interpretation of research findings. Thus there is hardly
any branch of study where statistics is not being used. It is used in all spheres of human
activities.

Statistics and Administration
In ancient times statistics was used as the science of statecraft. It was used to collect
data relating to manpower, crimes, income etc. for formulating different policies. In
modem times, its role has become manifold. It has become indispensable for the
administrators. It is being widely used formulating and forecasting different plans and
policies of the state administration.

Statistics in Business and Management:
Statistics play an important role in business. A successful businessman must be very quick
and accurate in decision making. He knows that what his customers wants, he should
therefore, know what to produce and sell and in what quantities. Statistics helps
businessman to plan production according to the taste of the costumers, the quality of the
products can also be checked more efficiently by using statistical methods. So all the
activities of the businessman based on statistical information.

1. Marketing: Statistical analysis are frequently used in providing information for making
decision in the field of marketing it is necessary first to find out what can be sold and the to
evolve suitable strategy, so that the goods which to the ultimate consumer. A skill full
analysis of data on production purchasing power, man power, habits of compotators, habits
of consumer, transportation cost should be consider to take any attempt to establish a new
market

2. Production: In the field of production statistical data and method play a very important
role. The decision about what to produce? How to produce? When to produce? For whom
to produce is based largely on statistical analysis.

3. Finance: The financial organization discharging their finance function effectively

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depend very heavily on statistical analysis of peat and tigers.

3. Banking: Banking institute have found if increasingly to establish research department
within their organization for the purpose of gathering and analysis information, not only
regarding their own business but also regarding general economic situation and every
segment of business in which they may have interest.

4. Investment: Statistics greatly assists investors in making clear and valued judgment in
his investment decision in selecting securities which are safe and have the best prospects of
yielding a good income.

5. Purchase: the purchase department in discharging their function makes use of statistical
data to frame suitable purchase policies such as what to buy? What quantity to buy? What
time to buy? Where to buy? Whom to buy?

6. Accounting: statistical data are also employer in accounting particularly in auditing
function, the technique of sampling and destination is frequently used.

7. Control: the management control process combines statistical and accounting method in
making the overall budget for the coming year including sales, materials, labor and other
costs and net profits and capital requirement.

CONCLUSION
In conclusion, statistics plays a very important role in all aspects of life and needs to
understood to understand all the subjects in which it is important as discussed above.

LIST OF REFERENCES
1. www.blogspot.com
2. www.google.com
3. www.emathzone.com
4. www.reference.com