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Introduction to Statistics

Module-1

Introduction to Statistics
The word statistics is derived from Latin word status, German
word statistik and French word statistique which means a
state.
Thus, Statistics is associated with Administrative Affairs of the
state.
For efficient administration government requires about food
production, imports, exports and defence force.
There are many people who made contribution to statistics
such as Francis Galton, Bernoulli, Karl Pearson etc.
Ronald Fisher is called Father of Statistics.
He showed how statistical techniques can be used in the field
of medicine, psychology, agriculture, etc.

Meaning of Statistics
Statistics is

A branch of science
Collection of data
Presentation of data
Analysis of data
Valid conclusion

suitable decisions can be taken.

Collection of data
1) Primary Data: They are the original data which are collected for the
first time.
2) Secondary Data: The data which is already collected & used for
analysis.
Types of primary data:
a) Census survey.
b) Sample survey.
In sample survey there are four types:
) Direct personal interview.
) Indirect personal interview.
) Mailed questionnaire.
) Schedules through enumeration.

Types of secondary Data


External secondary data sources:

.contd

b) Non-Governmental Publications (publications of Industrial & trade associations)

c) Various syndicate services; Operations Research Group, The Indian Mar

.contd

d) International

.contd
Internal secondary Data sources:

Characteristics
According to Prof. Horace, the following characteristics of
statistics can be noticed:
Statistics are aggregate of facts.
Statistics are numerically expressed.
Statistics are estimated according to reasonable standards of
accuracy.
Statistics are collected in a systematic manner for a predetermined purpose.
Statistics are placed in relation to each other.

Statistical Methods
Methods adopted as aids in the collection & analysis of
numerical information or statistical data for the purpose of
drawing conclusions & making decisions are called statistical
methods.
There are two branches of statistics
Mathematical Statistics:

Scope and Applications:


Initially stats was used by government officials for the purpose
of administration.
Hence its scope was limited, however as the time passed, the
science became more popular and its field of application
widened.
Now statistical techniques are used in medicine, agriculture,
commerce, Industries etc.
In Biology it is used to study the effect of newly invented
medicines, theories of hereditary, birth and death rate,
population growth etc.

Stats in Economics Commerce and Business


Statistical analysis of variations of price, demand and
production are helpful to businessmen and economists.
Analysis of demand, price, production etc helps in decision
making in business activities.
Mgmt of limited resources and labour in obtaining
maximum profit is done by statistical analyses of the data.
Planned recruitments and distribution of staff, personnel
mgmt, HRD, quality control methods, capture of markets
by advertisements, Balanced investment etc helps the
producer to extract maximum profit out of minimum
capital.

.contd
SQC Technique helps in Increasing and controlling the quality
of products at minimum costs.
Govt. administrative system is dependent on production yield,
income, labour statistics.
Economic planning is entirely based on statistical facts.
Statistics has become so important that it is said that science
without statistics bear no fruit and statistics without
science has no route.

Functions of Statistics:

It simplifies the complexity of the data.


It reduces the bulk of the data.
It adds precision t thinking.
It helps in comparing different sets of figures.
It guides in the formulation of policies and helps in planning.
It indicates trends and tendencies.
It helps in studying relationship between different factors.

Limitations of Statistics:
1. It does not deal with qualitative data.
2. It does not deal with individual facts.
3. Statistical inferences are not exact.
4. It can be misused.
5. Common man cannot handle statistics.

Some Basic Concepts


Population
Finite Population
Sample
Quantitative Characteristic
Qualitative Characteristic
Variable
Attribute
Discrete Variable
Continuous Variable
Nominal Data
Ordinal Data

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