WHAT

WHAT IS
IS
STATISTICS
STATISTICS

INTRODUCTION;
The word statistics has been derived from the latin word
“status” and german word “statistric” ;each of which means a
political state.
• for several decades ,the word
statistics was associated soley with
the display of facts and figures
pertaining to the economic
,demographic and political situation
prevailing in a country, usually
collected and brought out by the
local government.
 MEANING OF
STATISTICS
• The word statistics is used in two sense-plural and
singular.
• in plural form it refers to the
numerical data collected in a systematic manner
with some definite aim or object in view such as
the number of person suffering from malaria in
different colonies of delhi or number of
unemployed girls in different states of india and so
on.
• In singular form, the word statistics
means the science of statistics or
the subject itself. It includes the
statistical methods and principle
concerned with collection
,presentation ,analysis and
interpretation of numerical data.
 DIFINATION BY
DIFFERENT WRITERS

• “Statistics is a numerical statement

of facts in any department of
enquiring and placed in relation to
each other”
• -by bowley
• “statistics is the science which deals
with the collection, presentation,
analysis and interpretation of
numerical data.
• by bowley ,croxton and
cowden
•
• But the most suitable definition was given by
“secrist”

• It is the aggregate of facts affected to a marked

extent by multiplicity of causes, numerically
expressed, enumerated or estimated according to
reasonable standards of accuracy collected in a
systematic manner for a pre-determined purpose
and placed in relation to each other.
 FUNCTIONS OF
STATISTICS
• 1>It presents facts in a definite form.
• 2>It simplifies mass of figures.
• 3>It facilitates comparison.
• 4>It helps in formulating and testing hypothesis.
• 5>It helps in prediction.
• 6>It helps in the formulation of suitable policies.

•
• 1 >Definiteness:-numerical expressions
are convincing and, therefore ,one of the
most important functions of statistics is
to present general statements in a precise
and definite form statistics presents facts
in a definite form and thus help
comprehension what is stated.
For eg-a statement sex ratio (i.e
number of females per 1000 males) is
going up in india.
But it is not giving the clear idea but if
we the sex ratio has gone up from 927
in 1991 to 933 in 2001,it conveys a
definite meaning.
• 2> condensation;-not only does statistics
present facts in a definite form but it also helps
in condensing mass of data into a few significant
figures. In a way ,statistical methods present a
meaningful overall information from the mass of
data. thus it is impossible for one to form a
precise idea about the income position of the
people of india from a record of individual incomes
of the entire population .
• 3> comparison:-unless figure are compared
with others of the same kind they are often
devoid of any meaning. For eg if we say that the
production of maruti udyog ltd has increased
considerably shall not be meaningful unless some
comparison of figures is made. But the statement
there has been an increase from 200 cars a day in
sept 1998 to more than 2000 cars a day in
jan.2005 definitely indicates the increasing trend
in production.
• 4> formulating and testing
hypothesis:-statistical methods
are extremely useful in formulating
and testing hypothesis and to develop
new theories .
• 5>prediction:-plans and policies of organization
are invariably formulated well in advance of time of
their implementation .A knowledge of future is very
helpful in framing suitable policies and plans.
statistical method provide helpful means of
forecasting future events. For eg- if a businessman
has to decide how much he should produce in 2005,he
would like to know the expected sales for that year .
He may use his subjective judgments and make a
guess .However , a better method for him would
be to analyze the sales data of the past years of
the market to obtain necessary data for
estimating the sales volume for the year 2005.
6>formulating of policies:-statistics
provide the basic material for framing suitable
policies. for eg it may be necessary to decide how
much
Oil a nation should import in 2005,the
decision would depend upon the expected
internal production and the likely demand
for oil in 2005.In the absence of
information regarding the estimated
domestic output and demand for oil the
decision on imports cannot be made with
reasonable accuracy.
 LIMITATION OF
STATISTICS
• 1> It is not suitable for studying
qualitative phenomenon .Statistics are
numerical statements of facts .Such
characteristics as cannot be expressed in
numbers are incapable of statistical
analysis. Thus qualitative phenomenon like
honesty, efficiency, intelligence, blindness
and deafness cannot be studied directly.
2> Statistics does not study individual items as
statistics is concerned with aggregate facts.
3> statistics laws are not as perfect as laws of
physics and chemistry .The conclusion obtained
statistics are not universally true; they are true
only on certain condition .This is because
statistics is science as a science is less exact as
compared to natural sciences.
• 4>statistical results are true only on
average.
• 5>statistics can be misused. the misuse of
statistics may arise because of several
reasons. For eg- if statistical conclusion
are based on incomplete information, one
may arrive at fallacious conclusions. It may
be effected by the source of data not
given, inadequate data, unfair comparison,
arithmetic mistake etc…….
 CONCLUSION
• Mainly statistics is the science which deals with
the collection, presentation, analysis and
interpretation of numerical data. Statistics is
used in various area like production, investment,
marketing ,controlling and research also
.Everything in the world do some work and that
has got also some limitation like it statistics has
also some limitation.
THANK YOU

PRESENTED BY:-
SURYA PRAKASH
PGDM(1stsemester)