Meanings of Statistics

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Fundamental of Statistics

Part-I
Meanings of Statistics
The word statistics has two different meanings (sense) which are discussed below:
(1) Plural Sense (2) Singular Sense

In plural sense, the word statistics refer to numerical facts and figures collected in a systematic
manner with a definite purpose in any field of study. In this sense, statistics are also aggregates
of facts which are expressed in numerical form. For example, Statistics on industrial
production, statistics or population growth of a country in different years etc.

In singular sense, it refers to the science comprising methods which are used in collection,
analysis, interpretation and presentation of numerical data. These methods are used to draw
conclusion about the population parameter.

If we want to have a study about the distribution of weights of students in a certain college.
First of all, we will collect the information on the weights which may be obtained from the
records of the college or we may collect from the students directly. The large number of weight
figures will confuse the mind. In this situation we may arrange the weights in groups such as:
“50 Kg to 60 Kg” “60 Kg to 70 Kg” and so on and find the number of students fall in each
group. This step is called a presentation of data. We may still go further and compute the
averages and some other measures which may give us complete description of the original data.

Origin of Statistics
Statistics, as a subject, is as old a discipline as the human life is. The word 'Statistics'
seems to have been derived from the Latin word 'status' or Italian word 'statista' or the German
word 'Statistik' each of which means a political state.
Prof. R. A. Fisher is known as the Father of Statistics.

Definition of Statistics:
Statistics is a branch of mathematics dealing with the collection, organization,
presentation, analysis, and interpretation, of data. Statistics has been defined differently by
different writers.
According to Webster "Statistics are the classified facts representing the conditions of the
people in a state. Specially those facts which can be stated in numbers or any tabular or
classified arrangement."
According to Bowley statistics are "Numerical statements of facts in any department of enquiry
placed in relation to each other."

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According to Yule and Kendall, statistics means quantitative data affected to a marked extent
by multiplicity of causes.
By the definition of Lovitt, “Statistics is the science which deals with the collection,
classification and tabulation of facts as the basis of explanation, description and comparison of
phenomenon.”

Characteristics of Statistics
1. Statistics are aggregates of facts.
2. Statistics are numerically expressed.
3. Statistics are collected for a predetermine purpose.
4. Statistics are collected in a systemic manner.
5. Statistics must be comparable to each other.
6. Statistics are Capable of being Placed in Relation to each other:

Functions of Statistics
The Functions Performed by Statistics are given as under:
1. To Present Facts in Definite Form: We can represent the things in their true form with the
help of figures. Without a statistical study, our ideas would be vague and indefinite.
2. Precision to the Facts: The statistics are presented in a definite form so they also help in
condensing the data into important figures. So statistical methods present meaningful
information. In other words statistics helps in simplifying complex data to simple-to make them
understandable.
3. Comparisons: Comparison is one of the main functions of statistics as the absolute figures
convey a very less meaning.
4. Formulation and Testing of Hypothesis: These statistical methods help us in formulating and
testing the hypothesis or a new theory. With the help of statistical techniques, we can know the
effect of imposing tax on the exports of tea on the consumption of tea in other countries.
5. Forecasting: Statistics is not only concerned with the above functions, but it also predicts
the future course of action of the phenomena. We can make future policies on the basis of
estimates made with the help of Statistics. We can predict the demand for goods in 2005 if we
know the population in 2004 on the basis of growth rate of population in past. Similarly a
businessman can exploit the market situation in a successful manner if he knows about the
trends in the market. The statistics help in shaping future policies.

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Scope and Importance of Statistics:
As far as scope and importance of statistics is concerned it is very vast. Now statistics
holds a central position in almost every field like Industry, Commerce, Trade, Physics, Chemistry,
Economics, Mathematics, Biology, Botany, Psychology, Astronomy etc. There is almost no human
activity where its application is not needed.

1. In Business: 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

2. In Economics: Statistics play an important role in economics. Economics largely


depends upon statistics. In economics research statistical methods are used for
collecting and analysis the data and testing hypothesis. The relationship between supply
and demands is studies by statistical methods, the imports and exports, the inflation
rate, the per capita income are the problems which require good knowledge of statistics.

3. In Banking: Statistics play an important role in banking. The banks make use of
statistics for a number of purposes. The bankers use statistical approaches based on
probability to estimate the numbers of depositors and their claims for a certain day.

4. In Natural and Social Sciences: Statistics plays a vital role in almost all the natural
and social sciences. Statistical methods are commonly used for analyzing the
experiments results, testing their significance in Biology, Physics, Chemistry,
Mathematics, Meteorology, Research chambers of commerce, Sociology, Business,
Public Administration, Communication and Information Technology etc…

5. In Astronomy: Astronomy is one of the oldest branches of statistical study; it deals


with the measurement of distance, sizes, masses and densities of heavenly bodies by
means of observations. During these measurements errors are unavoidable so most
probable measurements are founded by using statistical methods.

6. In State Management (Administration): Statistics is essential for a country. Different


policies of the government are based on statistics. Statistical data are now widely used
in taking all administrative decisions. Preparation of federal and provincial government
budgets mainly depends upon statistics because it helps in estimating the expected
expenditures and revenue from different sources. So statistics are the eyes of
administration of the state.

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Limitations of Statistics:
In spite of the wide scope of the subject it has certain limitations. Some important limitations
of statistics are the following:
1. Statistics does not study qualitative phenomena: Statistics deals with facts and
figures. So the quality aspect of a variable or the subjective phenomenon falls out of
the scope of statistics. For example, qualities like beauty, honesty, intelligence etc.
cannot be numerically expressed. So these characteristics cannot be examined
statistically. This limits the scope of the subject.
2. Statistical laws are not exact: Statistical laws are not exact as in case of natural
sciences. These laws are true only on average.
3. Statistics does not study individuals: Statistics deals with aggregate of facts. Single
or isolated figures are not statistics. This is considered to be a major handicap of
statistics.
4. Statistics can be misused: Statistical methods rightly used are beneficial but if
misused these become harmful. Statistical methods used by less expert hands will lead
to inaccurate results. Here the fault does not lie with the subject of statistics but with
the person who makes wrong use of it.

Distrust of Statistics
Distrust of statistics literally means lack of trust in statistical data, statistical analysis and the
conclusions derived from it. We often hear statements like.

(i). Statistics is an unreliable science


(ii). Statistics are lies of the first order.
(iii). There are three type of lies-lies, damned lies and statistics.
(iv). Figures do not lie, liars figure.
Some of the important reasons of distrust in statistics are the following:
(a) Facts based on figures are more convincing. But these figures can be manipulated according
to one's wishes. This misguides public causing distrust in statistics.
(b) Sometimes statistical analyses are misinterpreted causing distrust in statistics. Supposing
the mortality rates of patients are more in Indian hospitals. From this one may wrongly
conclude that it is safer to treat the patients at home. This type of misinterpretation also causes
distrust in statistics.
Statistics are useful tools. One uses them according to his knowledge and experience. Use of
statistics makes a statement more convincing. But its misuse causes distrust. So it is necessary
that people should be adequately prepared to know the reality or to shift the truth from untruth,
good statistics from bad statistics. WI. King has rightly observed “statistics are like clay of
which we can make a ‘God’ or a ‘Devil’ as we please.”

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