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📊 What is Statistics?

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Statistics is the science of collection, analysis, interpretation, and presentation of numerical data.
✔ Branch of Mathematics
✔ Used in Economics, Accounting, Finance, Management, Psychology, Sociology, Physics.

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💡 Why is Statistics indispensable for an economist?

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✔ Helps understand economic problems
✔ Identifies causes using data
✔ Assists in formulating policies to solve problems.

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🔍 How does Statistics improve presentation of facts?

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✔ Converts vague statements into exact data.
Example:
✅ “310 people died in earthquake” (precise)
❌ “Hundreds of people died” (vague).

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📈 How does Statistics summarise mass data?

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✔ Uses numerical measures (mean, variance, standard deviation) to condense large data sets.
Example: Average income summarises all individual incomes.

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🔄 What relationships are analysed in Economics using Statistics?

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✔ Price ↔ Demand
✔ Price ↔ Supply
✔ Income ↔ Consumption Expenditure
✔ Govt. Expenditure ↔ General Price Level

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📝 How does Statistics test economic assumptions?

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✔ Economists assume relationships and verify their validity using statistical techniques like hypothesis testing and regression.

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🔮 How is Statistics used in prediction and planning?

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✔ Predicts future changes in one factor due to changes in another.
✔ Example: Today’s investment ➔ Future national income
✔ Helps set production targets based on consumption forecasts.

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✨ What is the mnemonic for steps in Statistics?

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C A S T P P
✔ Collection
✔ Analysis
✔ Summarisation
✔ Testing
✔ Prediction
✔ Policies