SHORT NOTES
Both these laws of statistics form the basis on which the entire theory of sampling
Q&A-2.201
Q&A-2.202 O CS Foundation Programme Paper - 2B
rests.
2004 - Dec [5] {C} Write notes on the following:
(ii) Inferential and analytical statistics (5 marks)
(iii) Limitations of statistics (5 marks)
Answer :
(ii) Inferential Statistics : Inferential statistics refers to that categorisation or classification
of statistics wherein techniques of statistics are adopted to derive inferences
(conclusions) on the basis of estimates drawn from samples about the population. Such
statistical inferences / conclusion are based on fundamental theories of mathematics &
are not guided by mere intuition, rather derived on the basis of prior exercise of logical
and rational thoughts.
Analytical Statistics : This division of statistics ambits in itself those techniques and
methods which seeks to analyse and compare the two sets of data by establishing
functional relation between the two. A large number of techniques like correlation,
regression etc are available which helps and facilitate comparison and establish
relationship between variables.
(iii) Rightly make by W.I. King, “Statistics are like a clay of which one can make a God or
a devil”
Despite of the universal applicability and widespread use of statistics the same suffers
from certain limitations which can be summed up as follows:
(a) Statistics studies only quantitative facts : This stands as one of the biggest
limitation of statistics that it deals with only one characteristics i.e. quantitative,
leaving apart the other important aspect being the qualitative aspects like efficiency,
intelligence, beauty, honesty poverty, blindness, deafness etc. The reason accorded
any statisticians being such qualitative aspects cannot be expressed in numbers.
(b) Statistical results are true on average only : This reflects that statistics is an
inexact science and the results are not universally true. They are an outcome of
certain set of assumptions and cannot be completely valid in all situations.
(c) Statistical Laws are not exact : Unlike the laws of physics, chemistry,
mathematics etc, laws of statistics are not so accurate and exact.
(d) Statistics studies groups only : One of the major flaw in statistics is that is deals
with groups and not with individuals. Dealing in aggregates leaving apart
individuals constitute its major limitation.
(e) Inherent limitation of Statistics : Statistics does not provides for the best or the
most optimum solution. Therefore it is advised that inferences should not be drawn
merely by relying on statistical methods above rather needs to be studied in
consonance with the other methods.
(f) Last but not the least, misuse of statistics are many. To quote Bowley has said,
“statistics can prove anything”Statistical tools can be deployed to distort and
manipulate the data in the manner we like. The user of statistical techniques should
[Chapter # 1] Descriptive Statistics O Q&A-2.203
be one skilled and experienced. One needs to have sound knowledge of the subject
as well exercise self control of an artist.
2005 - June [5] {C} (a) Write notes on the following:
(ii) Law of statistical regularity (4 marks)
Answer :
Please refer 2003 - Dec [5] {C} (a) (ii) on page no. 211
DESCRIPTIVE QUESTIONS
1998 - Dec [6] (a) Discuss the uses and limitations of statistics. (7 marks)
Answer :
Please refer 2004 - Dec [5] {C} (iii) on page no.212
1999 - June [6] (a) "Statistics can prove anything". Examine. (7 marks)
Answer :
In the present scenario, statistics has carved out an important place for itself due to its increasing
utility. The modern culture has become a statistical culture due to the widespread use of statistics
in the varied fields. Its importance can be explained as follows:
(a) Presentation of data : Statistics helps in presentation of facts and data in definite, precise
and proper convincing form. It is the ability of statistics to present comprehensive and
complex facts into simple crystalised form, leaving no room for ambiguity
(b) Simplification of complex data in condensed form : Not only statistics present data in
definite and precise form but at the same time helps in the conversion of huge data in
meaningful and condensed form so that the same become much more understandable.
(c) Helpful in policy formulation process : Statistics provides the raw data useful for the
formulation of economic, business, state, national and even policies at global level. Even
helps. in formulating policies relating to population employment, taxation, law and order.
(d) Useful in making comparisons : It facilitates comparisons and analysis of study of
relationship between two facts. Such relationship further help in evaluation and in making
comparisons.
(e) Facilitates forecasting : Statistical information helps in forecasting which refers to the
formal process of predicting future event that will guide the future path of an organisation.
(f) Establishes Cause and effect relationship : Statistics helps in striking out cause and effect
relationship between different sets of data. This enables them to attempt an effective
diagnosis of the problem and arrive at suitable solution.
(g) Framing and Testing Hypothesis : Statistics helps both in formulating hypothesis and
testing the feasibility of such hypothesis so as to arrive at correct decisions.
1999 - Dec [6] (a) Discuss the following :
(i) Characteristics of statistics (4 marks)
(ii) Stages of statistical enquiry (4 marks)
Answer :
Q&A-2.204 O CS Foundation Programme Paper - 2B
Answer :
(i) The aggregate of all similar units being the subject matter of an investigation is called
census or universe or population. Rightly said “A population is the totality of objects
under consideration”. Population thus refers to the summation of all items kept under
observation. For example, in a survey of any class all the students constituting that class
shall be termed as population.
On the other hand sample is only a part of the population kept under discussion and help
us to draw conclusion about the whole of the universe. On the basis of sample drawn.
Sample does not cover each and every item present in the population yet characteristics
of `SAMPLE’ are deemed to reveal characteristics of the entire `POPULATION’.
“sample is a miniature picture of population from which it is taken”.
(iii) Distrust of statistics means lack of confidence in statistical statements methods, tools and
techniques rightly said. ‘There are three kinds of lies - lies, dammed lies and statistics.
Statistics is subject of doubt and suspicion on account of its misuse by unscrupulous
persons who seek their personal gains. Distrust of statistics arises not because of any
fault in statistics as a subject matter, rather arises because the users tend to alter the data
to suit their convenience. In other way round, figures do not lie, liars non expert and
unskilled persons make incorrect use of statistics to arrive at predetermined conclusions
held by them. Following can be regarded as the main causes of distrust of statistics:
(a) Collection of statistics is not done in correct manner.
(b) Even on correct collection, they may be presented in a manner to mislead the end
user.
(c) Different kinds of statistics are obtained in respect of a given problem.
(d) Lack of knowledge of the subject.
To sum up, statistics, as such, do not prove anything. It merely consists of tools in
the hands of user and it is upto the user how he makes use of it - whether
constructive or destructive, Infact statistics is neither to be trusted blindly nor
distrusted outright. It must be used out cautiously and with full care Thus statistics
should not be used as a blind man uses a lamp post for support, instead of
illumination
2001 - Dec [6] (a) "Statistics should not be used as a blind man uses a lamp post for support,
instead of for illumination." Comment. (7 marks)
Answer :
The statement that statistics should not be used as a blindman uses a lamppost for support instead
of illumination is correct. It is because without an adequate knowledge and understanding of the
subject, one cannot make its fruitful use. For untrained person, it is like a lamppost for support
to blindman, instead a powerful tool for analysis. Statistics is widely used in almost all areas for
better and effective decision making, policy formulations, optimum use of human and material
resources etc.
Some of the important uses of statistics include the following:
[Chapter # 1] Descriptive Statistics O Q&A-2.207
(i) It is used by the trade and industry, in areas of financial planning, production plans,
production control, labour control and market services etc. for better decision making
and optimum utilisation of resources.
(ii) It is used by experts in understanding and formulation of appropriate economics policies
for business and state.
(iii) It is used by statesman for formulation of hypothesis and testing their validity.
(iv) It is also used by economists in formulations of economic planning and forecasting the
future.
(v) It also helps in running public administration efficiently and effectively.
(vi) It is also used by the Planning Commission and other Government Department/Agencies
in National Income estimates and other Policy formulation to the country.
2005 - Dec [8] (b) "In the modern age of information technology, statistics can be applied to
many areas." Write a note on important areas where statistics can be applied. (6 marks)
Answer :
Unlike ancient times where statistics had only limited applicability, in the present day world it
has gained widespread popularity and is used in various areas :
(a) Statistics and Economics : According to Marshall “statistics are the straw out of which I,
like every other economists have to make bricks.’’ Economics deals with the basic
questions of what to produce, how, and for whom to produce. It is statistics which provides
statistical information to solve such questions. Apart from this economics - consumption,
production distribution, exchange and public finance, in all of which statistics has
something or the other to contribute. One of the advancement caused by computerisation
is that statistical tools have gained much popularity particularly in field of economic policy
formulation.
(b) Economics and the state : Statistics play a prime role in ensuring the proper functioning
of the state. In ancient times also it was used in framing monetary and fiscal policies and
even collecting statistical data With changing time and widening scope of state activities.
Even the role of statistics has increased manifold and accelerate the overall development
of the entire system.
(c) Statistics and business : Statistics provide a fertile ground for forecasting which lay the
foundation of any successful business. It positively contributes towards business activities
like purchase, sale, marketing, accounting etc. In the present day, trade is impossible
without the use of statistics. To quote “it is not an exaggeration to say that today mostly
every decision in business us made hence, in business field statistics has lot of to
contribute.”
(d) Statistics and natural science and social science : Statistics plays a crucial role in the
study of all natural sciences like biology, botany, zoology. Apart from natural sciences, it
has widespread applicability in the field of social sciences too. It, for instance, studies
mortality, population, growth, development, education and other related factors.
This increasing applicability in the varied fields has further increased with the increase in
computerisation and other development. MG has pointed the widespread use of statistics
by stating “statistical thinking will one day be as necessary for efficient citizenship as the
Q&A-2.208 O CS Foundation Programme Paper - 2B
(ii) Statistics are affected to a marked extent by multiplicity of causes: Statistical data
basically refers to measurement of facts in a complex and dynamic situation. The business
and economic phenomena are complex in the sense that they are affected to a considerable
extent by a number of forces or factors operating together. Most of the factors are even
difficult to identify. For example, statistics of production of rice are affected by the rainfall,
quality of soil, seeds etc. It is very difficult to study separately the effect of these forces on
the production of rice. However, experts have devised the ways and means for segregating
the effect of various forces on an event.
(iii) Statistics should be placed in relation to each other: This characteristic of statistics
require that the collected statistics should be comparable with reference to time, place or
[Chapter # 1] Descriptive Statistics O Q&A-2.209
any other condition. In order that statistics are comparable, it is essential that they are
homogeneous and pertain to same investigation. For example, all the numerical facts are
called statistics and should be comparable. The valid comparisons can be made only if the
data are homogenous i,e., likes are compared with likes. In the absence of above
characteristics, numerical data cannot be called statistics and hence all statistics are
numerical statements of facts but all numerical statements of facts are not statistics.
(iv) Statistics does not deal with isolated measurements: Isolated measurements are not
statistics. Data are statistics when they relate to measurement of masses, and not statistics
when they relate to an individual item.
2008 - Dec [7] Attempt of the following :
(i) “All statistics are numerical statements but all numerical statements are not statistics.”
Explain. (5 marks)
Answer :
It is true that all statistics are numerical statements but all numerical statements are not statistics.
To be a statistics, numerical data should possesses the following characteristics.
(i) It should be aggregate of facts.
(ii) It should be numerically expressed.
(iii) It must have a reasonable degree of accuracy.
(iv) It can be affected to market extent by multiplicity of causes.
(v) To be a statistics, data must be collected for pre-determined purpose.
(vi) The data should be collected in a systematic manner which require careful planning of
data collection approach.
2009 - June [7] Attempt the following :
(i) Comment on the statement that 'statistics can prove anything'. (5 marks)
Answer :
(i) Please refer 1999 - June [6] (a) on page no. 213
2009 - Dec [7] (a) Discuss the usefulness of statistics in economics. (5 marks)
Answer :
Please refer 2005 - Dec [8] (b) on page no. 217.
2010 - June [7] (a) State the characteristics which the numerical data should possess to be known
as statistics. (5 marks)
(b) Explain laws of statistics. (5 marks)
Answer :
(a) Please Refer 2008 Dec [7] (i) of Descriptive Question on Page no. 219.
(b) Please Refer 2003 Dec [5] {C} (a) of Short Notes on Page no. 211
2010 - Dec [7] Attempt the following :
(i) Define ‘statistics’ and discuss its importance in business and management. (5 marks)
Q&A-2.210 O CS Foundation Programme Paper - 2B
OBJECTIVE QUESTIONS
2009 - June [5] {C} (a) State, with reasons in brief, whether the following statements are correct
or incorrect :
(i) Perfect accuracy is unattainable in statistical enquiries. (2 marks)
Answer :
(i) Perfect accuracy is unattainable in statistical enquiries because in statistics there remains
errors in measurement & collection of data.
2009 - June [5] {C} (b) Choose the most appropriate answer from the given options in respect
of the following :
(i) Statistics deals with )
(a) Independent data
(b) Quantitative data
(c) Qualitative data
(d) Both (b) and (c). (1 mark)
Answer :
(i) (b) Quantitative data.
2009 - Dec [5] {C} (a) State, with reasons in brief, whether the following statements are correct
or incorrect :
(i) Statistics studies qualitative phenomenon. (2 marks)
Answer :
(i) Incorrect: Statistics does not study the qualitative phenomenon Statistics deals with
quantitative data only and not the qualitative phenomenon.
2009 - Dec [5] {C} (b) Choose the most appropriate answer from the given options in respect of
the following :
(i) Statistics in plural sense refers to —
(a) Statistical data
(b) Statistical methods
(c) Applied statistics
(d) Inductive statistics. (1 mark)
Answer :
(a) Statistical data
2009 - Dec [6] (b) Re-write the following sentences after filling-in the blank spaces with
appropriate word(s)/figure(s) :
(i) Descriptive statistics deals with _________.
[Chapter # 1] Descriptive Statistics O Q&A-2.211
(vi) _____ is a branch of applied mathematics which specialises in data. (1 mark each)
Answer :
(i) Descriptive statistics deals with numerical data.
(vi) Statistics is a branch of applied mathematics which specialises in data.
2010 - June [5] {C} (a) State, with reasons in brief, whether the following statements are correct
or incorrect:
(i) Statistical results are true only on an average. (2 marks)
Answer :
Y Statiscal results depict an average behaviour / tendency.
Y They are true on average basis only and are not perfectly accurate.
Y Statistical conclusions cannot be regarded as universal truths.
Y For instance, if average salary of 50 employees is Rs. 10,000 it does not indicate that each
and every is earning is Rs. 10,000.
2010 - June [6] (b) Re-write the following sentences after filling-in the blank spaces with
appropriate word(s)/figure(s):
(i) The law of inertia of large numbers is of the law of statistical regularity.
(1 mark)
Answer :
(i) The law of inertia of large numbers is corollary of the law of statistical regularity.
2010 - Dec [5] {C} (a) State, with reasons in brief, whether the following statements are true or
false:
(i) Statistical laws are not exact. (2 marks)
(b) Choose the most appropriate answer from the given options in respect of the following :
(i) In ancient times, statistics was known as—
(a) The science of kings
(b) The science of Statecraft
(c) Political arithmetic
(d) All of the above. (1 mark)
2010 - Dec [6] (b) Re-write the following sentences after filling-in the blank spaces with
appropriate word(s)/figure(s) :
(i) __________ is indispensable for functioning of the State. (1 mark)
Year 06 06 07 07 08 08 09 09 10 10
J D J D J D J D J D
Objective 3 3 2 3
Descriptive 4 6 9
Total 4 6 9 3 3 2 3
(c) Inductive statistics : This division of statistics covers those methods of statistics which
help in daring or estimating, forecasting or making judgements about particular
phenomenon on basis of the observations made and are backed by scientific thoughts and
not by hit or any trial method.
(d) Mathematical statistics : This is concerned with the application of various mathematical
theories and techniques of statistics. For example, theory of integration, differentiation,
matrix etc which have wide applicability in mathematics are used in statistics too. Thus,
this division is concerned with mathematical aspects of statistics
(e) Inferential statistics
(f) Analytical statistics
(4) During the collection stage of statistical enquiry data may be collected from _______ and
_______ sources.
Ans - Primary, secondary.
(5) _______ of data refers to removing omission, inconsistences or any sort of inaccuracy.
Ans - Editing
(6) Interpretation of data refers to drawing _______ from the data.
Ans - Conclusions
(7) _______ states that larger the size of sample, better are the results.
Ans - The Law of inertia of large numbers.
(8) _______ in the branch of statistics which deals with application of mathematical techniques
and theories to develop statistical theories.
Ans - Mathematical statistics
(9) Statistical laws are _______ exact.
Ans - not
(10) Inductive statistics is concerned with those techniques of statistics which help in_______
on basis of random observation.
Ans - estimating a particular phenomenon.
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