Functions of Statistics

vijay.gahlawat@gmail.com
• Numerical and Definite Expression of facts
• Simple and condensed presentation of facts
• To provide techniques for making comparisons
• Establishment of Relationship between facts
• Enlargement of Individual knowledge and
Experience
• Helpful in formulation of policies
• Formulates and Tests hypothesis
• Helpful in forecasting
 Numerical and Definite Expression of facts
• Statistics deals with the quantitative statements of fact
and thus presents them in numerical and definite
form.
• Quantitative statements of facts are always more
convincing than vague statements.
• For Eg., the statements like ‘the birth rate in India is
decreasing, trade deficit is being balanced, etc. hardly
carry any worthwhile information without any mention
of the numerical dimensions involved.
• In other words, these statements can be made
impressive if they are presented in numerical form also
it is done by statistics.
Simple and Condensed presentation of facts
• Human mind is incapable of remembering a large
number of facts and figures at any one time. Therefore,
the important function of statistical methods is to
simplify the complex data into diagrammatic and
graphic representation, averages and dispersion etc.
• The huge masses of data cab be converted into a
picture, a diagram, etc. which are easier to understand.
• For eg., we can not remember the marks obtained by
50 students ; but it is easy to remember the average
marks of the students in a single figure, say 60%.
To provide techniques for making comparison
• Comparison is one of the chief functions of statistics
as the absolute figures convey a very little meaning.
• Statistical devices like averages, ratios, %, rates,
coefficients, etc. are the tools that make comparison
possible.
• The comparison between two phenomena enable us
to draw useful conclusions therefrom.
• For eg., we estimate national income of India not for
itself, but to compare the income now with the past
and thus draw conclusions as to whether the
standard of living the people in general is improving.
Establishment of Relationship between facts
• One important functions of statistics is to make
possible the functional relationship between two or
more phenomena.
• Coefficient of correlation, coefficient of association,
regression etc. are the measures through which we
measure the functional relationship.
• For eg., it is possible to observe the relationship
between income and expenditure, demand and
supply, literacy and employment, etc., through
statistical methods.
Establishment of Relationship between facts
• One important functions of statistics is to make
possible the functional relationship between two or
more phenomena.
• Coefficient of correlation, coefficient of association,
regression etc. are the measures through which we
measure the functional relationship.
• For eg., it is possible to observe the relationship
between income and expenditure, demand and
supply, literacy and employment, etc., through
statistical methods.
 Enlargement of individual knowledge &
Experience
• The main function of statistics is to enlarge our
knowledge of complex phenomena and to lend
precision to our ideas that would otherwise remain
vague and indeterminate.
• Statistics increases the field of mental vision as a
telescope that increases the field of physical vision.
• Infact, many fields of knowledge would have
remained closed to mankind, without the efficient
and useful techniques of statistical analysis.
 Helpful in Formulation of Policies
• Statistics helps in formulating policies in social,
economic and business fields.
• Various government policies in the field of planning,
taxation, foreign trade, social security, etc., are
formulated on the basis of analysis of statistical data
and the inferences drawn from them.
• For eg., vital statistics comprising birth and
mortality rates help in assessing future growth in
population.
• This information is necessary for designing any
scheme of family planning.
 Formulates and Test Hypothesis
• Statistical methods are extremely useful in
formulating and testing hypothesis.
• For eg., hypothesis like whether coaching is
effective in improving the performance of the
students, can be tested by appropriate statistical
tools.
• Only after the effectiveness of a medicine is
established by the convincing statistical techniques,
a pharmaceutical company can venture to produce
a medicine.
 Helpful in Forecasting
• Almost all our activities are based on estimates
about future and the judicious forecasting of future
trends is a prerequisite for efficient implementation
of policies.
• The statistical techniques for extrapolation, time
series and forecasting are highly useful for
forecasting future events.
 Functions or Uses of Statistics

Functions or Uses of Statistics

(1) Statistics helps in providing a better understanding and exact

description of a phenomenon of nature.
(2) Statistical helps in proper and efficient planning of a statistical inquiry
in any field of study.
(3) Statistical helps in collecting an appropriate quantitative data.
(4) Statistics helps in presenting complex data in a suitable tabular,
diagrammatic and graphic form for an easy and clear comprehension of
the data.
(5) Statistics helps in understanding the nature and pattern of variability
of a phenomenon through quantitative obersevations.
(6) Statistics helps in drawing valid inference, along with a measure of
their reliability about the population parameters from the sample data.