Introduction to statistics

Introduction to statistics

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Important Terms

Consumer : Consumer is an economic agent who buys the goods and services to satisfy his wants.

Producer: is one who produces goods and services for the generation of income.

Service holder : A person who is in job and gives his services as a factor of production and is getting paid for it. E.g. Govt. Teacher.

Service Provider : A person who provides services to other for a payment. e.g. transporter, auto driver.

Statistics : Statistics is a method of taking decisions on the basis of numerical data.

Statistics can be defined in two ways:-

1. Singular sense:

 Statistic Means Statistical methods and techniques related to collection, organisation, classification, Presentation, analysis and Interpretation of data.

2. Plural Sense: 

Statistics means Numerical facts and figures Which have been systematically collected for a definite purpose in any field of study.

Characteristics of statistics in plural sense

• 1. Aggregate of facts

• 2. Numerically expressed

• 3. Affected by multiplicity of causes

• 4. Reasonable accuracy

• 5. Collected in a systematic manner

• 6. Pre-determined Purpose

• 7. Placed in relation to each other

Stages of statistics in singular sense

• 1. Collection of data

• 2. Organisation of data

• 3. Presentation of data

• 4. Analysis of data

• 5. Interpretation of data

Statistical data

(1) Qualitative data – Not measured in numerical terms like beauty and intelligence.

(2) Quantitative data – Measured in numerical terms like price and Income.

Scope of Statistics

In the old days the use of statistics was restricted to deal with the affairs of the state. But now-a-days the scope of statistics has spread to all those areas where numerical facts are used such as economics, business industry, medicine, physics, chemistry and numerous other fields of knowledge.

Importance of Statistics in Economics

• It enables an economist to present economic facts in precise and definite form.

• Helps in condensing mass data info a few numerical measures.

• Statistics is used in finding relationship between different economic factors.

• Economics forecasting through statistical studies.

Importance of Statistics in Economics

• Helpful to formulate appropriate economic policies that solve economic problems.

• Help to analyse the performance of policies applied before.

• Economist try to find out cause and effect relationship between different sets of data.

• Formulation of policies.

• Used for inter-sectoral and inter-temporal comparisons.

•  It is a quantitative expression for economic problem

Advantages os Statistic

1. Statistics simplifies complexities.

2. It expresses facts in numbers.

3.It presents data in condensed form.

4. Statistics compares different phenomena and reassures relationship between them.

5. Statistics is helpful in formation of policies.

6. Statistics is helpful in economic forecasting.

7. It facilitates comparisons.

8. It is useful in testing the laws of other sciences.

9. It helps in establishment of correlation between two facts.

Limitations of Statistics

1. Statistics does not study individuals.

2. Statistics results might lead to fallacious conclusions.

3. Statistics deals with quantitative facts only.

4. Statistics laws are true only on averages.

5. Only experts can make the best possible use of statistics.

6. Uniformity and homogeneity of data is essential

7. Misuse of statistics is indeed its greatest limitation because misuse of statistics is possible.

8. Study of aggregates only

9. Without reference, results may prove to be wrong.

Multiple Choice

A science of collection, presentation of data.

• Population

• Statistics

• Analysis of Data

• None of the above

Multiple Choice

Refers to the collection of facts where the researcher gets information.

• Collection of Data

• Organization of Data

• Analysis of Data

• None of the above

Multiple Choice

By deliberately twisting or manipulating data, statistics can be used as another form of lying

• True

• False

Multiple Choice

Statistics is of no use to government in policy formulation

• True

• False

Multiple Choice

Statistics can help to predict the future growth of an economy.

• True

• False

Multiple Choice

"Statistics does not help in comparison of data of different regions"

• True

• False

Multiple Choice

How will 'Parental activities' be categorised

• Economic activity

• Non-economic activity

• None of these

Multiple Choice

"Economics is a social science as it systematically studies human behaviour."

• True

• False

Multiple Choice

Which of the following is an example of qualitative data

• number of vegetarian students

• number of illiterate people in India

• everyday temperature

• appreciation of art

Multiple Choice

Which of the following is NOT a limitation of statistics

• It does not study individuals

• Statistics can not be misused

• Statistics does not study the qualitative aspect of a problem

• None of these

Multiple Choice

How does statistics help in economic planning

• helps to make best use of national resources

• helps compare development of various countries

• All of these

• None of these

Multiple Choice

Which of the following is NOT a characteristic of statistics under plural sense

• Statistics are aggregate of facts

• Statistics are numerically expressed

• Statistics are collected for a predetermined purpose

• None of these

Multiple Choice

Statistics is defined in terms of numerical data in

• Singular sense

• Plural sense

• Both of these

• None of these

Multiple Choice

Statistics in singular sense includes

• Collection of data

• Organisation of data

• Analysis of data

• All of these

Multiple Choice

Statistics in plural sense means

• Statistical methods

• Descriptive statistics

• Quantitative data

• Qualitative data

Multiple Choice

Distrust of statistics is due to

• limitation of statistics

• Misuse of statistics

• Insufficient statistical methods

• None of these

Multiple Choice

Statistics in singular sense means

• Statistical data

• Statistical procedure

• statistical laws

• None of these

Multiple Choice

_______ is a person who buys goods and services for the satisfaction of his/her wants

• Producer

• Service provider

• Service holder

• Consumer

Multiple Choice

Activities undertaken to earn a living are known as

• Non-Economic activities

• Economic activities

• Both of these

• None of these

Multiple Choice

Economics is an art because

• it gives practical application of scientific principles

• it makes it easier to understand economic conditions

• its laws can be tested in controlled conditions

• None of the above

Multiple Choice

Which of the following is NOT an economic activity

• Production of books

• Investment in stocks

• Donation of blood

• Consumption of Ice creams