INTRODUCTION

TO STATISTICS
 ORIGIN AND GROWTH

The word statistics has been derived from the Latin word
“status”, the Italian word “statista”, the German word
“statistic”. ”. All these words mean a “political state”.
In the early years statistics meant ‘a collection of facts
about the state or the people in the state for political
purposes’. Statistics develops as ‘king’s subject’ or as a
‘science of kings’.
Gottfried Achenwall in 1749 was the first to use the term
statistics to refer a subject matter as a whole. He is
regarded as the “Father of Statistics.”
DEFINITION:
 The term statistics has been defined differently
by different authors. Some have
defined the word in the sense of numerical data,
where as others have defined in the sense of
statistical methods.
1. Statistics as numerical data (plural sense)
2. Statistics as statistical methods (singular sense)
 1.Statistics data (plural as numerical sense)

 According to Horace Secrist “Statistics may be

defined as the aggregates of facts affected to a
marked extent by multiplicity of causes,
numerically expressed, enumerated or
estimated according to reasonable standard of
accuracy, collected in a systematic manner for
a predetermined purpose and placed in
relation to each other.”
2. Statistics as statistical methods (singularsense)

 According to Croxton and Cowden, “Statistics

may be defined as the science of collection,
organisation, presentation, analysis and
interpretation of numerical data”.
 Importance of Statistics:
1.To a common man: The groceries purchased by a housewife for the month. The
choice of mode of transport by an officer or a student etc.
2.To state: A major area for which statistics is used by the government is
planning, annual budget and the 5 year plan are formulated based on wealth of
statistical data relating to production, population, consumption, investments,
savings, incomes, spending patterns, prices, demand, supply, reserves etc.
3.In business and management: Statistics has tremendously influenced the way
business is managed. Sourcing of raw materials and other resources, selecting
the right personnel inclusion of capital, forecasting of sales, control of costs etc.
4.To other sciences:
a. Economics
b. Mathematics
c. Natural Sciences
d. Social Sciences
 Limitations of statistics:
Although statistics is widely used in all aspects
of human activity, it has its own limitations. The
following are some of the limitations.
o Statistics doesn’t study qualitative phenomenon.
o Statistics doesn’t study individual measurements.
o Statistical laws are true only on an average.
o Statistics can be misused.
o Statistics can’t be applied to any situation.
 Functions of statistics:
 Systematic collection and presentation of facts.
 Simplification of mass figures.
 Facilitates comparison.
 Helps in formulation and testing of hypothesis.
 Helps in Prediction.
 Helps in policy formulation and decision making.
 Enlarge individual experience.
 Study of relationship between various
phenomenon.
 Measures efficiency.
 Distrust of Statistics :
Some of the reasons for the distrust of statistics
are as follows:
1. Quality of data.
2. Incomplete data.
3. Manipulated data.
4. Statistics is only tool.
 It is often commented by people that ‘statistics
are lies of first order’ or ‘statistics are like mini
skits, they cover up some of the essentials’.
 Collection of data:
Data is a collection of any number of
related observations.A collection of data is
called data set and a single observation is
called data point. Data constitute the
foundation for statistical analysis and
interpretation.Hence,Collection of data is a
very critical step in statistical analysis data
which can be collected either from internal
records or from primary and secondary
sources.
Internal data: It refers to the data available from the records
kept by Organisation on a routine basis. Organisation need to
maintain a lot of records on account of statutory requirements
for information of Management.
 Primary data: It refers to the data collected for the first time and
is original in character. Primary data is thecall result of surveys
conducted by individuals. Primary data is essentially raw and
statistical methods will have to be applied on such data for the
purpose of analysis and interpretation.
Secondary data: Data which is not originally collected but
is obtained from published or unpublished sources is
secondary data. They are collected and processed by
some Agencies and made use of by some other Agencies
for the statistical work.
Methods of collecting primary data:
1.Direct personal interview.
2.Indirect oral investigation.
3.Information received through local agencies.
4.Mailed questionnaire method.
5. Schedules sent through enumerators.
 Methods of collecting data:
1.Census method: In this system, information is collected from the entire ‘population’. The term ‘population’ means the entire
Universe of units that fall under the scope of study.
2.Sampling method: A ‘sample’ is a part of a population. It is subset of the entire set of units that falls within the scope of study.
Random sampling methods:
 Simple random sampling
a. Lottery
b. Random number table
Stratified random sampling
Systematic sampling.
Multistage random sampling.
Non random sampling methods:
Judgement sampling
Cluster sampling
Convenience sampling
Sequential sampling
Quota sampling
Types of Errors :
➦Biased errors
➦Unbiased errors
Reasons for statistical errors:
o Errors of origin
o Errors of inadequacy
o Errors of manipulation
 Classification of data:

• According to Horace secrist, “ classification is the

process of arranging data into sequences and
Groups according to their common characteristics,
or separating them into different but related parts”.
• Basis of classification: Data is classified depending on
the objective of the study. Normally data is classified
on the following criteria.
i. Geographical
ii. Chronological
iii. Qualitative
iv. Quantitative
 Tabulation
A table is a systematic arrangement of statistical data in columns
and rows. Rows are horizontal arrangements whereas columns
are vertical arrangements. Tabulation is systematic presentation
of data in a form suitable for analysis and interpretation.
Parts of a table:
1.Table number
2.Table title
3.Captions
4.Sub
5.Body
6.Head Note
7.Footnote
8.Source Data
• Frequency: The number of times each variate or variable occurs is known as frequency.
• Variable or Variate: A characteristic which can be expressed numerically is called variable or variate.
• Frequency distribution: Classification showing different values of a variate on a corresponding is known as frequency
distribution.
Numerical data is further divided into 3 series. They are as follows:
• 1. Individual series:
• It is a serious where items are listed individually, separately one by one either in ascending order or descending order.
• Eg:
• Players A B C D E F
• Runs 5 100 0 10 15 80

• 2.Discrete series:
• When items are arranged in groups indicating definite break from one point to another and they are exactly
measurable. Discrete series represents items arranged in such a manner that each unit of data is separate and
complete. There is no continuity.
• Eg:
• Marks in accounts 99 100 50 40 10
• Marks in statistics 100 90 20 50 100

• 3.Continuous series:
• when data can take any value without any gap,the series becomes a continuous series the items are arranged in
groups or classes,
• Eg:
• Marks 10-20 20-30 30-40 40-50 50-60
• No’ of students 510 50 20 15
• Class: Each stated interval into which the continuous variables get
classified is a class.

• Class limit: The class limits are the lowest and highest values that can
be included in the class.
• For example, 10 to 19, 10 is lowest value and 19 is highest value. These
limits are called lower limit and upper limit.

• Class interval: The difference between the upper limit and the
lower limit of a class is known as class interval. For example, in a
class 10-15, the class interval is 5 ,i.e. upper limit-lower limit.

• Midpoint or mid value: It is the value lying Halfway between

lower limit and upper limit of a class. It is ascertained as follows
Midpoint= upper limit + lower limit/ 2