INTRODUCTION TO STATISTICS

POOJA MEHRA VERMA

LEARNING OBJECTIVE
 Develop basic understanding of what
Statistics is all about.
 Helps to know you why statistics is
important.
 Describe the relationship of statistics with
computers.
INTRODUCTION

Statistics means different things to different people:

 To a public bank it is what are the chances that person will repay loan
on time
 To a manager of power station statistics are amount of pollution being
released in atmosphere
 To Food & Drug Administrator it is likely percentage of side effects
that can happen with new cancer medicine

Each of these persons is using the word correctly yet each person uses it
in a different way. But all of them are using statistics to help them
make decision
 MEANING OF STATISTICS
In olden days ,statistics meant the data collected for official purposes
in relation to the activities of the state. But now it gained broader
meaning because of its wider application to numerous problems far
apart from the state activities. The word statistics now used in two
sense, viz plural and singular. In a narrow and plural statistics refers
to some numerical data. In wider and singular sense , statistics
refers to science of statistical methods.
To be more clear about the subject, we define it in the following two
senses
1. Statistics in Plural Sense

2. Statistics in Singular Sense

 FEATURES OF STATISTICS IN PLURAL
SENSE
 Aggregates of facts: A single fact though numerically expressed cannot
be called statistics because it lacks connection and comparison. Statistics
are group of facts.
 Affected by multiplicity of causes: Statistics are aggregates of such
facts only which grow out of variety of circumstances. For example
yield of rice affected by rainfall, quality of soil , amount of fertilizer ,
technique of cultivation etc. Figures related with multicasual phenomena
are to be called statistics because in statistics we are able to separate the
effects of different independent variables on dependent variables.
 Numerically expressed : Qualitative phenomenon which cannot be
numerically expressed cannot be describe as statistics e.g. beauty,
honesty etc. But if a variable is capable of being assigned numerical
terms it may be termed as statistics for example Rich ( Monthly income
> Rs. 50,000) Poor (Monthly income < Rs. 8000) etc.
FEATURES OF STATISTICS IN PLURAL
SENSE
 Enumerated or estimated according to reasonable
degree of accuracy: Statistics are to be obtained by
actual counting or by estimates. Estimates can’t be
precise and they lack accuracy. It may, however, be made
clear that is not mathematical accuracy but only a
reasonable accuracy that is needed. For example, an
estimate that there are 60 million students appeared in
Class X in CBSE, it may be few hundred more or less.
The degree of accuracy desired depends on the aim and
object of inquiry.
 Collected in systematic manner: Data not
systematically collected would lead to misleading
conclusions.
FEATURES OF STATISTICS IN PLURAL
SENSE
 Collected for pre-determined purpose: Numerical data is
compiled in a properly planned manner and for the purpose
about which the enumerator had a definite idea. So far as
enumerator is not clear about the object for which facts are to
be collected , he will not be able to distinguish between
relevant and irrelevant , necessary and unnecessary facts. As
such the data will be heterogeneous mass of unconnected
facts.
 Placed in relation to each other: Facts should be
comparable. Facts are comparable in point of time when we
have measurement of same object obtained in a similar
manner for various periods.
FEATURES OF STATISTICS IN SINGULAR
SENSE
 Collection of data: Collection of data pertaining to
investigation is the first step . Great care should be taken while
collecting data , as it is the basis of statistical analysis.
Statistical data can be primary or secondary by nature. Data
originally collected for a statistical enquiry are known as
primary data where as data obtained from published or
unpublished sources are known as secondary data.
 Organization of data: The organization of data involves editing
, classification and tabulation . Editing is necessary to remove
inconsistencies. Classification means arranging data according
to some common characteristics. The purpose of tabulation is to
present data in columns and rows so that there is clarity in data
presented.
FEATURES OF STATISTICS IN SINGULAR
SENSE
 Presentation of data: Orderly presentation of data facilitates
comparisons and statistical analysis. Data can be presented by
diagrams or graphs
 Analysis: Simple mathematical techniques can be employed
for this purpose like measures of central tendency , measures
of dispersion , correlation , regression etc.
 Interpretation: The last and most important step is the
interpretation of analysis i.e arriving at conclusions.
Interpretation is a difficult task and involves skill and
experience . If data is not properly interpreted then the whole
object of investigation is defeated
FUNCTIONS OF STATISTICS
 Precision of facts: Statistical method presents a meaningful
overall information from mass of data. Single figure in the
form of average or percentage can be remembered easily.
 Presents data in definite form: Statistics presents data in
definite form which helps in understanding what is stated. for
example. The unemployment is increasing , is qualitative
statement and appears to be less attractive. In comparison to
this , the statement like unemployment in India has increased
from 33 lakh in 1st plan to 350 lakh in 10th plan appears to be
more appealing and convincing.
FUNCTIONS OF STATISTICS
 Facilitates comparisons: Certain facts, by themselves
may have no significance unless they are capable of being
compared with similar facts of other places or at other
period of time. For example National income statistics of
different periods help us to make comparisons so as to
know whether standard of living has improved or not.
 Helpful in prediction: Statistical methods help us to
forecast future events based on the statistical
investigation. For example State Electricity Board has to
decide how much electricity is to be generated by 2015, it
must know the expected demand for that year. It would be
possible to know expected demand only after conducting
statistical inquiry.
FUNCTIONS OF STATISTICS
 Formulation and testing of hypothesis: Statistical methods
help in formulating and testing hypothesis and develop new
theories. For example a particular drug cures a disease or not
or the students have benefitted from the extra coaching or not.
 Enlarges individual experience and knowledge: Without
statistics many fields of knowledge have remained closed to
mankind. The greatest achievement in this regard in 20th
century is the landing of space crafts on moon.
 Framing policies: With the help of statistics we can frame
suitable policies and can make economic planning a success.
CONCLUSION

We can sum up in the words of Robert W. Burgess

“ The fundamental gospel of statistics is to push back the
domain of ignorance ,rule of thumb , arbitrary or premature
decisions traditions and dogmatism and to increase the
domain in which decisions are made and principles are
formulated on the basis of analysed quantitative facts”
MULTIPLE CHOICE QUESTION
Q. Which of the following is not the features of statistics
in singular sense
(a) Collection of data

(b) Analysis

(c) Affected by multiplicity of causes

(d) Interpretation

Answer: (c)