INDORE INSTITUTE OF LAW

UNIT I
INTRODUCTION TO STATISTICS
PROF. AMBARISH BAPAT
 Introduction to Statistics
Origin – It is either derived from the word Latin
word Status or Italian word Stato or German word
Statistick. In all the three languages it means ‘an
organized political state’.

Meaning of Statistics
Statistics has multiple meanings depending upon
the person using it. For a common man it is just a
data or a fact or a measurement. Some may
regard it as study of figures, for some it is analysis
of figures for forecasting or drawing inferences.
Diagrammatic or graphic representation of facts is
also considered as statistics.
Unit I Introduction to Statistics
Processing, analysis and application of
quantitative facts is also regarded as
Statistics. In general it can be of following
forms –
As a product – Data
As a process – Statistical methods
As an application – Methods and theories
used to handle
numerical data for
inferential decision
purposes.
Unit I Introduction to Statistics
Definition of Statistics –
According to Horace Secrist, “By statistics we mean
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”.

Unit I Introduction to Statistics

The definition mentions the characteristics which data
should possess. As per the definition it should have
following features –
1. Statistics are aggregates of facts – single or
unrelated figures are not statistics, because they do
not throw light on any problem. Statistical data are
concrete numbers which represent objects. Numbers
like 20, 25, 18, 23 etc. cannot be called statistics but
if they are placed in a series indicating ages of 20 and
25 years of the husbands the respective ages of wives
are 18 and 23 years, then these figures are termed as
statistics.

Unit I Introduction to Statistics

2. Affected to a marked extent by multiplicity of
causes – Statistics refer to the measurement of
phenomena in a complex universe. They are related to
various factors surrounding them. Hence to say that
statistics are affected by a single factor is not correct.

3. Numerically expressed, enumerated or estimated –

The facts which are to be called as statistical data are
expressed numerically as it adds a value to it.

Unit I Introduction to Statistics

4. According to the reasonable standards of accuracy –
There has to be certain rules while collecting data
associated. This is necessary to maintain homogeneity
of data.

5. Collected in a systematic manner for a pre-

determined purpose – Data is collected as per a set of
rules decided prior to the collection to avoid any kind
of redundancy as well as inaccuracy.

Unit I Introduction to Statistics

6. Placed in relation to each other – Data is usually
collected for comparing it with other type of similar
data so that certain conclusion can be drawn.

Unit I Introduction to Statistics

Other definitions of Statistics –
A. L. Bowley – He gave following three definitions of
statistics –
1. Statistics is the science of counting.
2. Statistics may rightly be called as science of
Averages.
3. Statistics is the science of the measurement
of social organism regarded as a whole in all its
manifestations.

Unit I Introduction to Statistics

Modern Definitions of Statistics –
1. W. I. King – The science of statistics is the method
of judging collective, natural or social phenomena
from the results obtained by the analysis of an
enumeration or collection of estimates.

2. P. H. Karmel – The subject statistics is concerned

with the collection, presentation, description and
analysis of data which are measurable in numerical
form.

Unit I Introduction to Statistics

3. Seligman – Statistics is the science which deals with
the methods of collecting, presenting, comparing and
interpreting numerical data collected to throw some
light on any sphere of inquiry.

4. Wallis and Roberts – Statistics is a body of methods

making wise decisions in the face of uncertainty.

Unit I Introduction to Statistics

5. Fisher – Statistics may be regarded as
a. The study of population,
b. The study of variation,
c. The study of methods of reduction of data.

In general, “Statistics is a science and an art which

deals with collection, classification, tabulation,
presentation, establishment of relationship,
interpretation and forecasting of data in connection
with social, economic, natural and other problems so
that the predetermined aims may be achieved”.

Unit I Introduction to Statistics

As per the above definition there are five stages in a
statistical investigation –
1. Collection – Collecting data is the first step in a
statistical investigation. Data must be collected with
maximum care and accuracy as it forms the foundation
of the statistical analysis. In case faulty data is
collected wrong conclusions will be drawn. The first
hand collection of data is very difficult and important
task faced by the statistician. An investigator must
view data collected earlier so that repetition and
waste of time and resource can be avoided.

Unit I Introduction to Statistics

2. Organization – Data collected from published
sources are generally in organized form. However, a
large mass of figures that are collected from a survey
needs to be organized. The first step is to edit the
data. It must be edited carefully so that omissions,
inconsistencies, irrelevant answers and wrong
computations can be adjusted / corrected. After
editing data it must be classified according to some
common characteristics. Tabulation is the last step in
the organization.

Unit I Introduction to Statistics

3. Presentation – After the data is collected and
organized it is ready for presentation. Data presented
in an orderly manner facilitate statistical analysis.
There are two different modes in which the collected
data can be presented –
1. Diagrams
2. Graphs

4. Analysis – After collection, organization and

presentation the next step is analysis. The purpose of
analyzing data is to dig out information useful for
decision making.

Unit I Introduction to Statistics

5. Interpretation – The final stage in statistical
investigation is interpretation, i.e. drawing
inferences / conclusions form the data collected and
analyzed. Interpretation is a difficult task and needs a
high level of expertise and experience.

Functions of Statistics –
1. It represents 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.

Unit I Introduction to Statistics

Application of Statistics –
Statistics and the State – Since ancient times the ruling
kings and chiefs have relied prominently on statistics
in framing suitable military and fiscal policies. Most of
the statistics related to crimes, military strength,
population, taxes etc.

Statistics and Mathematics –

Statistics is a branch of science based on mathematics.
It attempts to formulate definite rules of procedure
applicable in handling groups of data of many different
varieties.

Unit I Introduction to Statistics

Statistics and Economics – Economic policies are often
designed on the basis of statistics. Various economic
laws and theories were propounded after statistical
tests. Statistical methods help in deriving economic
laws and also in providing the validity of existing
economic laws. It helps in developing the empirical
laws side of economics.

Statistics and Physical Sciences – Various sciences like

biology, physics, chemistry, Astrology, Medicines etc.
use statistical methods. In these sciences statistical
data are collected from the results of experiments.

Unit I Introduction to Statistics

Statistics and Social Sciences – Statistics is widely used
in social sciences. Political science, geography, history,
psychology etc. use statistical methods in
investigations and research in their respective fields.
I.Q computation in psychology is done using statistical
methods.

Statistics and Industry and Commerce – Statistical

methods and procedures are employed by business
managers. Data recorded on commercial transactions
gives an insight regarding buying/selling pattern and
helps in forecasting.

Unit I Introduction to Statistics

Functions of Statistics –
1. To simplify complex data.
2. To provide comparative studies.
3. To study relationships between different facts.
4. To enlarge individual knowledge and experience.
5. To formulate policies in different fields.
6. To measure effects.
7. To test a hypothesis.
8. To provide numerical measurement.
9. To forecast.

Unit I Introduction to Statistics

Limitations of Statistics –
1. Statistics only studies the quantitative aspects of a
problem and does not study the quantitative aspects.
2. Statistics deals with averages.
3. Statistics does not study individuals.
4. Statistical results are only approximately correct.
5. Statistical results are not always beyond doubt.
6. Statistics is only a mean.

Unit I Introduction to Statistics

Limitations of Statistics –
1. Statistics only studies the quantitative aspects of a
problem and does not study the quantitative aspects.
2. Statistics deals with averages.
3. Statistics does not study individuals.
4. Statistical results are only approximately correct.
5. Statistical results are not always beyond doubt.
6. Statistics is only a mean.

Unit I Introduction to Statistics

Types of Numbers –
1. Natural Numbers (N)
2. Whole Numbers (W)
3. Integers (Z)
4. Rational Numbers (Q)
5. Real Numbers (R)

Unit I Introduction to Statistics

1. Natural Numbers (N) – They are also termed as positive integers or
counting numbers or natural numbers. Ex – {1, 2, 3….}

2. Whole Numbers (W) – They are composed of all natural numbers

including zero (0). Ex – {0, 1, 2, 3,….}

3. Integers (Z) – It consists of all the whole numbers along with all the
negative numbers i.e. negatives of all natural numbers. Ex – (……, -3, -2,
-1, 0, 1, 2, 3,….)

4. Rational Numbers (Q) – It consists of all the fractions where numerator

and denominator both are integers. Here the numerator can be zero (0)
but denominator can not be.

5. Real Numbers (R) – It includes all those numbers which can be expressed
in decimal form. It includes fractions written in decimal format (0.052).
It also includes all the irrational numbers like π, √2 etc. Every real
number corresponds to a point on the number line. They are often
termed as measuring numbers or measurement numbers.
Unit I Introduction to Statistics
Numbers can also be divided as per their signs. They
may be positive or negative. Usually numbers are signed
as per the side of the number line they lie upon. A
number to the right of zero is termed as positive while
to the left of zero it is negative.

Unit I Introduction to Statistics

Variable(s) – It can be defined as a characteristics, number
or a quantity which can be measured or counted. It is
often referred to as a data item. Variable(s) may be
age, sex, income, price, demand, grade, color etc. It is
termed as variable as its value varies between given set
of values and it may change over a period of time. For
example the voting age earlier was 21 yrs but now it has
come down to 18 yrs. So a variable ‘Voting Age’ has
value 18 yrs rather than the earlier 21 yrs.

Unit I Introduction to Statistics

Types of variable(s) –

Numeric Variables – They are variables which describe a quantity expressed

using a number or a numeric value. It is a quantitative variable and can
either be continuous or discrete.

A continuous variable is a numeric variable having value between a certain set

of real numbers. Height, age, temperature, weight etc, are example of
continuous variable.

A discrete variable is also a numeric variable. It can value from a set of distinct
whole values. It can not have a fractional value between any two whole
numbers. A discrete variable may have a unique value for a given variable.
For examples no of children in a family, no of workers in a factory etc.

Unit I Introduction to Statistics

Attributes – It refers to the quality of a characteristic. The
theory of attributes deals with qualitative types of
characteristics that are calculated using quantitative
measurements. Hence, an attribute needs slightly different
kind of statistical treatment which the variables do not get.
Attributes refer to the characteristics of the item under
study, like the habit of smoking, or drinking. So ‘smoking’
and ‘drinking’ both refer to the example of an attribute.

Unit I Introduction to Statistics

In the theory of attributes, the researcher puts more
emphasis on quality and not on quantity. Since the
statistical techniques deal with quantitative
measurements, qualitative data is converted into
quantitative data in the theory of attributes. There are
certain representations that are made in the theory of
attributes. The population in the theory of attributes is
divided into two classes, namely the negative class and
the positive class.

Unit I Introduction to Statistics

The positive class signifies that the attribute is present
in that particular item under study, and this class in the
theory of attributes is represented as A, B, C, etc. The
negative class signifies that the attribute is not present
in that particular item under study, and this class in the
theory of attributes is represented as α, β, etc. The
assembling of the two attributes, i.e. by combining the
letters under consideration (such as AB), denotes the
assembling of the two attributes.

Unit I Introduction to Statistics

This assembling of the two attributes is termed dichotomous
classification. The number of the observations that have been
allocated in the attributes is known as the class frequencies.
These class frequencies are symbolically denoted by
bracketing the attribute terminologies. (B), for example,
stands for the class frequency of the attribute B. The
frequencies of the class also have some levels in the
attribute. For example, the class that is represented by the
‘n’ attribute refers to the class that has the nth order. For
example, (B) refers to the class of 2nd order in the theory of
attributes.

Unit I Introduction to Statistics

These attribute symbols also play the role of an operator.
For example, A.N=(A) means that the operation of
dichotomizing N according to the attribute A gives the
class frequency equal to (A).

There is also independence nature in the theory of

attributes. The two attributes are said to be independent
only if the two attributes are absolutely uncorrelated to
each other.

Unit I Introduction to Statistics

Discrete Data – Quantitative data which can be counted and
has number of possible values. E.g. Days of the week, Months
in a year.

Continuous Data – Quantitative data which can be measured

and has an finite number of possible values within a selected
range. E.g. Temperature range.

Continuous data has finite number of outcomes whereas

Discrete data has infinite number of outcomes.

Unit I Introduction to Statistics

Frequency Distribution –
Frequency – Usually it is the number of times a value is
repeated.

It can be further classified for discrete and continuous type

of data.

Unit I Introduction to Statistics

Discrete Frequency Distribution – It is very simple to
construct. The number of times a number gets repeated is
noted down and the total is the frequency of that class.
Example –

Number of Rooms Frequency

1 7
2 5
3 7
4 3
5 3
Total 23

Unit I Introduction to Statistics

 Continuous Frequency Distribution – Continuous frequency
distribution is done in a number of ways. Here the data is divided
into class intervals instead of individual values. Class interval are
decided on following four factors –

1. Determining number of classes – A frequency distribution should

consists of not more than 20 - 25 and not less than 6 – 8.

2. Magnitude of class intervals – It depends upon the range of the

data and the number of classes. Range of the data is the
difference between the highest and lowest value of the variable in
question.

Unit I Introduction to Statistics

3. Class limits – While choosing class limits it must be
considered that these should be chosen in such a way that
the mid point of a class interval and the actual average of
items of that class interval should be as close to each other
as possible.

Unit I Introduction to Statistics

4. Exclusive Method – When data is classified in such a way
that the upper limit of a class interval is the lower limit of
the next class interval, then it is said to be the exclusive
method of classifying data.

C. I. M. V Freq
0 – 10 5 6
10 - 20 15 3
20 - 30 25 6

Unit I Introduction to Statistics

12, 13, 21, 25, 29, 28, 27, 11, 15, 16, 10, 9, 26, 27,
31, 33, 34, 35, 36, 38, 40, 41, 45, 43, 47, 44, 42
C. I. M. V. Freq
0 – 10 5 1
10 - 20 15 6
20 – 30 25 7
30 – 40 35 6
40 – 50 45 7
∑F = 27

Unit I Introduction to Statistics