Stastics

                        Stastics


 “Statistics are measurement, enumerations or estimates of
natural or social phenomena, usually systematically arranged, analysed
and presented as to exhibit Important inter- relationships among them.”
               -A.M.Tuttle


 Characteristics:

 1. Statistics is a Quantitative Science: It does not deal with
qualities. It deals only with quantities like mean mark, the correlation
coefficient between expenditure on advertisement and sales, etc. Even
while determining the association between two attributes , those
qualities are to be expressed only in number such as the number of
literates, the number of persons employed, etc.
 2.It never considers a single item: Only a set of items is
considered and a single item is never considered. A physician consider
the mark of a student in one subject alone.
 3.The value should be different: All the values in a set of
items should not be one and the same.They should be different.
Otherwise there is no use for any statistical measure. It is not necessary
to calculate mean standard deviation, etc. When all the value are equal.

Scope and Uses:

1.Industry:
Statistical method and statistical data are very useful for an industry. They play the
most complementary role.
Statistical ,methods help in the maintenance of records of inventory, purchase,
production and marketing. They also help to do the difficult tast of deciding when and where
to purchase the raw materials, how to schedule the production, how to exploit the market
conditional and how best to utilise the available men, machinery and capital. Each and every
activity of an industry can be determined by using statistical method. Industrialists need not
any longer adopt trial and error method. They can weigh the advantages and disadvantages of
each course of action and choose the best among them. 

2. Commerce and Business:
Increasing size of the population and changing attitude of the people 
to spend more cause increses cause increse in the volume of business. 
Tasted and preference of the consumers are changing. New fashions are 
introduced. Competition is is growing. Cheaper substitutes are being 
invented.Gods are manufactured long before they are offered for sale. 
Manufacturers, maketing agents and consumers are strangers to each others. 

3. Economics:
 Statistical techniques are very extensively used in Economics. The laws of 
Economics are not so exact as the laws of physical science. The nature of statistical method is 
extremely suitable for examining the theretical laws and empirical relation of Economic. Jevous felt 
even in 1871 that “That deductive science of economy must be verified and rendered useful by the 
purely inductive science of statistics.” Statistics is so widely used in Economic to promot Sir R.A. 
Fisher to complain as fsr back in 1926 of “the painful misapprehension that Statistics is a branch of 
Economic.”
 Statistical method enrich the quantitative study of Economics. Economics is 
concerned with production, distribution. Consumption, savings, investment, etc . Equitable 
distribution of national incomes and wealth is one of the set goals of socialist governments. Lorenz 
curve exhibits the disparity in their distributions. Consumption patterns of people depend upon their 
income, habits and customs. Consumption shows the way in which people of different strata spend 
their income. Savings augment investment enhances production.
 Index number are rightly called Economic Barometers. Index numbers of 
wholesale prices, index number of the economy and the direction in which it is moving.

Limitations:
 Limitations of Statistics are due to the characteristics of the 
science. Statistics is a very usefull tool. But it can not be used for all 
purposes and in all situations as seen below.

 1. Statistics does not deal with qualities: It is a quantitative 
science which does not deal with qualities directly. In Chemistry the 
property of a gas is studied. In Statistics no quality is studied. But 
qualities in terms of number are considered. Number of males, number 
of persons cured from a disease and so forth may be considered when 
necessary.

 2. Statistics does not consider a single item: A single item is 
not considered in Statistics. Only aggregate of items is considered. This 
is different from the situation where a doctor treats only one paitient.

3.All the values should not the same : The values in satistics have 
to be different . When the amounts of sales in different periods are 
considered, they will not be equal. The daily productions in a factory 
will not be the same. But in physics or Chemistry laboratory the reading 
are same as long as the conditions remain the same. In Statistics the 
observations differ from one another.

4. Inductive logic is applied: Under induction a sample is 
observed and generalisation for the whole population is made from the 
sample observations. Almost all statistical enquiries are of this type. 
Some statistical enquiries may involve population surveys. Even on 
such occasions deductive logic is not used.

5. Statistical results are not exact: The statistical results are not 
exact as in natural sciences. The volume of a gas under given pressure 
and temperature can be estimated accurately. But statistical forecasts 
using time series or regression do not coincide with the true values.





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