DEFINITION AND SCOPE

OF STATISTICS
1. Introduction
 Statistics is a field of
mathematics that pertains to
data analysis.
 For the last few centuries,
statistics has remained a part
of mathematics as the
original work was done by
mathematicians like Pascal,
James Bernoulli, De-Moivre,
Laplace, Gauss and others.
Till early nineteenth century,
statistics was mainly
concerned with official
statistics needed for the
collection of information on
revenue, population etc. of a
state or kingdom.
The science of statistics
developed gradually and its
field of application widened
day by day.
In fact, the term statistics is
generally used to mean
numerical facts and figures.
2.Meaning of the Word
Statistics
The word statistics seems to
have been derived from the
Latin word ‘status’ or the
Italian word ‘statista’ or the
German word ‘Statistik’ each
of which means a ‘political
state’.
 In ancient times the
governments used to collect
the information regarding the
population and property of
wealth of the country- the
former enabling the
government to have an idea
of the manpower of the
country (to safeguard itself
against external aggression, if
any) and the latter providing
it a basis for introducing new
taxes and levies.
Seventeenth Century saw
the
origin of ‘vital
Captain statistics’. John
London knownGrauntasofthe father
of vital statistics was the first
man to study the statistics of
birth and death. Computation
of mortality table and the
calculation of expectation of
life at different ages led to the
idea of life insurance and the
first life insurance institution
was founded in London in
1698.
The theoretical development
of the so called modern
statistics came during the mid
seventeenth century with the
introduction of Theory of
Probability and Theory
of
Games and chance. The chief
contributors being
Pascal,
De-Moivre, James Bernoulli,
Laplace, Gauss, Sir Francis
Galton, Karl Pearson, W. S.
Gosset, Helmert, Sir R. A.
Fisher.
3. Indian History of Statistics
 In India, an efficient system
of collecting official and
administrative statistics
existed even more than 2000
years ago, in particular
during the reign of
Chandragupta Maurya (324-
300B. C).
From Kautilya’s
Arthashastra it is known that
even before 300 B.C a very
good system of collecting
vital statistics and
registration of births and
deaths was in vogue.
 During Akbar’s reign Raja
Todarmal, the then land and
revenue minister maintained
good records of land and
Agricultural Statistics.In by
Aina-e-Akbari
Abul Fazal we find written
detailed
accounts of administrative
and statistical surveys
conducted
during reign. Akbar’s
1.4 Definition of Statistics
Statistics has been defined
differently by different authors
from time to time.
In ancient times statistics was
confined only to the affairs of
the state but now it embraces
almost every sphere of human
activity.
Webster defines statistics as
‘classified facts representing the
conditions of the people in a
state-especially those facts
which can be stated in numbers
or in any other tabular or
classified arrangement’.

This definition confines

statistics only to the data to
pertaining the state is as the
inadequate domain of
statistics is much wider.
Bowley defines statistics as
‘Numerical statements of the of to
facts in any department
enquiry placed in
relation
each other’. He himself defines
statistics in three different
(i)
ways: Statistics may be
called as the science
counting. of
(ii)Statistics may rightly be
called as the science of
averages.
(iii)Statistics is the science
of the measurement of
social organism, regarded
as a whole in all its
manifestations.
The above definitions are
inadequate.
The first because
not merely confined
statistics is to the
collection of data as
aspects like presentation,
other
analysis and interpretation etc.
are also covered by it.
The second because averages
are only a part of the statistical
tools used in the analysis of
data. These are not only the
tools but others being
Dispersion, Skewness, Kurtosis,
Correlation & Regression etc.
 The third because it
restricts theapplication of
statistics to while today
sociology
statistics has the
application in almost found
every field
of science. its
Perhaps the best
seems to definition be
Croxton andoneCowden,
givenaccording
by
to whom statistics may be
defined as ‘the science which
deals with the collection,
analysis and interpretation
numericalof data’.
Statistics, therefore is defined as
the science of collection,
compilation, tabulation, analysis
and interpretation of
quantitativedata.It is
essentially a branch of applied
mathematics i.e.
mathematics applied to the
data. Statistics essentially mean
observational
the procedure by which we
understand data.
Statistics used as a singular
word i.e. ‘statistics’ means as
particular kind of estimate
from set of
compiled
observations, usually according
to some algebraic formulae.
�Statistics� used as singular
is a name given for the body of
scientific methods (the
statistical methods) which are
meant for the collection,
compilation, analysis and
interpretation of numerical data.
�Statistics� used as a plural
noun means numericaldata
which result from a host of
uncontrolled, and mostly
unknown cause
together. It is in
s this sense that
acting
the term is used when our daily
newspaper give vital statistics,
crime statistics, sports statistics,
agriculture and dairy statistics,
food production statistics etc.
Statistics has two broad
functions:
� Descriptive Statistics -
The first function is to
describe and summarize the
information in such a way so
as to make it more usable
� Inductive Statistics -
The second function is to
draw inferences about the
population from the
information contained in the
sample which is only a part
of the population and thus we
pass from the particular to
the general. Here the
induction has to be achieved
within a probabilistic frame
work.
1.5 Application of Statistics
Early applications of
statistics were
concerned with reduction of
mainly
large amounts of observed
data to the point where
general
trends apparent. become
 At the same time, emphasis
in many sciences turned from
the study of individuals to
the study of the behavior of
aggregates of individuals.
Statistical methods were
found suitable
for such
studies, aggregate data fitting
consistently with the concept
of a population.
Statistics is very widely
in �Quality Control�. In
used
production engineering, to
find whether the product is
conforming to specifications
or not, Statistical techniques
viz., control charts and
Acceptance Sampling, plans
etc. are of extreme
importance which will be
discussed in modules of
Statistical Quality Control. In
dairy processing, various
value added dairy products
are developed for which
proportions of ingredients are
required so as to get least
cost product mix which
fulfills certain minimum
requirements. The chemical,
microbiological and sensory
attributes of such developed
dairy products are also
monitored over different
periods of storage time.
Various statistical techniques
are employed in order to
fulfill such requirements.
1.6 Distrust of Statistics
We often hear the following
interesting comments on
Statistics:
(i)�An ounce of truth will
produce tons of Statistics�,
(ii)�Statistics can prove
anything�,
(iii)�Figures do not lie. Liars
figure�,
(iv)�If figures say so it
can�t be otherwise�,
(v) �There are three types of
lies � lies, damn lies and
Statistics � written in the
order of their naming and so
on.�
Some of the reason for
existence the of suchdivergent
views regarding the nature and
function of Statistics are as

follows: Figures are innocent,

� easily believable and
convincing.
more The facts
supported figures are
by
psychologically more
appealing.
� Figures put forward for
arguments may be inaccurate
or incomplete and thus
might lead to wrong
inferences.
� Figures, though
accurate, might be moulded
and manipulated by selfish
persons to conceal the truth
and present a distorted
picture of facts to the public
to meet their selfish motives.
When the skilled talkers,
writers or politicians through
their forceful writings and
speeches or the business and
commercial enterprises
through advertisements in the
press mislead the public or
belie their expectations by
quoting wrong statistical
statements or manipulating
statistical data for personal
motives, the public loses its
faith and belief in the science
of Statistics and starts
condemning it. We cannot
blame the layman for his
distrust of Statistics, as he,
unlike statistician, is not in a
position to distinguish
valid and invalid
between
conclusions from statistical
analysis.
It may be pointed out that

Statistics neither proves

anything nor disproves
anything.
 It is only a tool which when
rightly used may prove
extremely useful and if
misused, might be disastrous.
According to Bowley,

�Statistics only furnishes

a

tool, necessary
though imperfect,
which is
dangerous in the hands of
 It is not the subject of
Statistics that is to be blamed
but those people who twist
the numerical data and
misuse them either due to
ignorance or deliberately for
personal selfish motives.
As king points out,
�Science of Statistics is the
more useful servant but only
of great value to those who
understand its proper use.�
1.7 Limitations of Statistics
� It does not deal with
individual measurements.
� It deals with quantitative
characteristics.
� Statistical results are true
only on an average
� It is only one of the methods
of studying a problem
8. Statistical Agencies
The responsibility of collection,
processing and tabulation and
their dissemination lies with
statistical agencies. Following
are the major agencies at
national level:
1.Central Statistical
Organisation (Department of
Statistics, Ministry of
Planning and Programme
Implementation), New Delhi.
2.National Sample Survey
Organisation (Department of
Statistics, Ministry of
 Planning and
Programme
Implementation), New Delhi.
3. Registrar
General of India
4. (Ministry
Directorate of
General
Home of
Commercial
Affairs), NewIntelligence
Delhi. and
Statistics. (Ministry of
Commerce), Calcutta.
5. Directorate of Economics
and Statistics (Department of
Agriculture and
Cooperation, Ministry of
Agriculture), New Delhi.
6. Labour Bureau (Ministry of
Labour), Shimla and
Chandigarh.
7.Department of Economic
Analysis and Policy, Reserve
Bank of India, Mumbai.
8.Office of the Economic
Advisor, Department of
Industrial Development, New
Delhi.
9.Directorate General of
Employment and Training,
(Ministry of Labour), New
Delhi.
10. of Food
Ministry Industries,
Processing New
Delhi
11. Agricultural and
Processed Food
Export Development
Products,
Authority (APEDA), New
Delhi
12. Dairy
National
Development
(NDDB), Anand Board
Apart from these, each
Government of India ministry
has either a full-fledged
statistical division or section.
Public sector organizations have
their own arrangements for
collection and maintenance of
statistics. In states and Union
Territories (UTs), there are
State Statistical Bureaus. On the
whole, statistical system in
India is a decentralized one; the
responsibility of collection and
dissemination of statistics is
divided between the union and
state governments. Statistics is
collected by other bodies are
All India Statistical Operations
such as Census of India, Annual
Survey of Industries (ASI),
National Sample Survey etc.
Official statistical websites are:
� http://www.nic.in/stat
� http://www.mospi.nic.i
n
� http://www.nddb.org
� http://www.apeda.gov.
in
� http://www.mofpi.nic.i
n
� http://www.censusindi
a.net
� rgindia@hub.nic.in
� http://www.rbi.org.in