(a) Statistics and Statistical Data :The word Statistics is used to convey two different senses and is defined differently in each case. One the plural of “statistics” referring to the numerical data collected in an orderly manner with some specific objective in view. A. L. Bowley defines Statistics as numerical statements of facts in any department of inquiry placed in relation to each oilier. however. Prof Hrace Secrist defined it as “By Statistics we mean aggregate of facts affected to a marked extent by multiplicity of causes numerically expressed. enumerated or estimated according to reasonable standards of accuracy. collected in a : systematic manner for a predetermined purpose and placed in relation to each other.”
(b) Statistics as Statistical methods or as a tool of analysis:When the word carries a singular sense it refers to the science of theory and techniques that are used lo co1lect represent. analyze and draw conclusions horn the data. A. L. Rowley defined Statistics as the “science of measurements of social organism. Regarded as a “hole in all its manifestation. in fact a number of definitions of statistics denoting singularity are available but perhaps the best one so far is given by Croxton and Cowden as:
“Statistics may be defined as the science of collection. presentation. analysis and interrelation of numerical data.”On the basis of these ideas. we can broadly summarize that Statistics is a science of
- Collecting numerical information (data)
- Classification. summarization. organization and analysis of data
- evaluation of the numerical (data)
- Drawing conclusions based on evaluation of data
Applications of StatisticsThere have been a tremendous growth in the last century that Statistics keeps a role to play in almost ever)’ branch of human knowledge; it may be the proper functioning of business and industry, understanding the principles of commerce and economics or the development of the various scientific theories and what not. A few of the multitudes of channels that confront statistics these days are as follows:
- Statistics in business commerce and industry: The important areas of business or industry are ( a) Production (b) Marketing (e) Personnel (d) Finance and (e) Accounting. where the main functions of Statistics in a practical field of working are planning of operations, establishment of standards and their control. In business problems these statistical functions are conducted either : if) isolation or in mutual combinations. For example, Statistics is used for quality control in production and is employed for the analysis of sales and marketing in business. Wages and allowances of employees are fixed up on the basis of index numbers. Statistical analysis of costing and accounting data is made for ascertaining profit or loss and for knowing the financial position of the concern at a particular point. Statistical methods are very common and useful to accounts. Audits are done with speed and reliance through sampling. An estimate of the relationship between the cost and volume of production can be made through statistical studies of the past data.
- Statistical methods: provide a valuable assistance for the study. solution and formulation of economic policies on topics like production. distribution of wealth. demand arid supply. etc. that no economist can afford to go without their exhaustive studies. The government intervention in the national economy, the growth of large scale entrepreneurial activity and introduction of scientific methods in to various parts of business administration has simulated and contributed to the rapid development of economic- statistics.
- A student of Physics or chemistry or of any other pure science. while conducting an experience in the laboratory has necessity to rely upon the application of statistics. An experiment is repeated, its readings very and in order to reach closest lo the accurate result. one has to tabulate them and an average is calculated. In fact higher studies in every science need application of the statistical laws like correlation, Regression, dispersion, approximation probability and the tests of significance etc.
- Innumerable illustrations can be given to show that in biology there are frequent applications of statistics Tests of significance are applied to compare the effects of two or more drugs; the law of probability is employed in irradiation when the cells in the retina of eye are exposed to he light; chart is used to study heart beats; through electrocardiograms, and the like. In agriculture; the comparison or varieties of seeds or of fertilizers is made through the principle of analyses variance based on sampling theory. The very fact that industrial, medical, agricultural, bio statistics and many more like that are now separate branch of study which speaks of the every expanding scope of statistics and its indispensability in these areas. Statistics also provides a good: device of saving time. Material and personnel in different studies.
- descriptive Statics :ln descriptive statistics we summarize or describe the data set at hand and evaluate the data sets for patterns and reduce. information to a convenient from.
- Inferential Statistics:in Inferential Statistics we use the sample data to make estimates or predictions about a large set of data (also known as population or universe) and test their suitability.