BCOM GE 201-18

Business Statistics
Unit-1(Introduction to Statistics)
LESSON 2

Vivek Sharma
 Vivek Sharma

Unit-1( Introduction to Statistics)

L2- LESSON 2
Unit-1
L1 –Meaning, Definitions, Features of statistics,
Learning Objectives
Functions,
1. Functions of Statistics
L2-Importance ,Limitations of Statistics. 2. Uses and Importance of
Statistics
L3-Sources of Primary and Secondary data.
3.Limitations of Statistics
L4- Presentation of Data and Frequency distribution.
L5 – Meaning of Population and Sample, Parameter and
Statistics
L6- Probability and Non Probability Sampling Methods
 Unit-1( Introduction to Statistics) Vivek Sharma

L2- LESSON 2

Functions of Statistics

Helps in collecting appropriate

quantitative data
Proper and efficient planning of
a statistical enquiry
Clear comprehension of data
with tables and graphs
 Unit-1( Introduction to Statistics) Vivek Sharma

L2- LESSON 2

Functions of Statistics

Helps in understanding patterns

and variations in nature’s
phenomena using quantitative
data.
Drawing valid inferences about
population from samples.
 Unit-1( Introduction to Statistics) Vivek Sharma

L2- LESSON 2

Importance of Statistics

Simplifies mass of data.

Getting Concrete information
about the statistical enquiry.
Helps in reliable and objective
decision making
 Unit-1( Introduction to Statistics) Vivek Sharma

L2- LESSON 2

Importance of Statistics

Helps in presentation of facts in

precise and definite form.
It facilitates comparison.
Helps in prediction (Time series
and Regression Analysis)
 Unit-1( Introduction to Statistics) Vivek Sharma

L2- LESSON 2

Importance of Statistics

Helps in the formulation of the

policies
Helps in diverse fields as
Astronomy, Mathematics, Social
Science, Economics etc.
Is useful in Business, Trade,
Banking
 Unit-1( Introduction to Statistics)

L2- LESSON 2

Importance of Statistics

Trade:
•Changes in demand, supply,
habits, fashion, etc. can be
anticipated
•Helps in determining the prices
of the various products,
determining the phases of boom
and depression, etc.
 Unit-1( Introduction to Statistics) Vivek Sharma

L2- LESSON 2

Uses of Statistics

Graphical representation of
collected data
The importance of statistics in
government is utilized by making
judgments about health,
populations, education, and much
more.
 Unit-1( Introduction to Statistics) Vivek Sharma

L2- LESSON 2

Uses of Statistics

The computer use in weather

forecasting is based on a set
of statistical functions.
 Unit-1( Introduction to Statistics) Vivek Sharma

L2- LESSON 2

Uses of Statistics

The uses of statistics in

research can lead researchers to
summarization, proper
characterization, performance,
and description of the outcome of
the research.
 Unit-1( Introduction to Statistics)

L2- LESSON 2

Uses of Statistics

Quality Tests in the Industry is

based on Statistical Principles
e.g. Six Sigma , Quality Circles
 Unit-1( Introduction to Statistics) Vivek Sharma

L2- LESSON 2

Uses of Statistics

Helps a business organization to

find out the number of potential
customers in a specific area, their
income level and preferences etc.
recognize its competitors and
trends in the market
 Unit-1( Introduction to Statistics)

L2- LESSON 2

Uses of Statistics

Quality Tests in the Industry is

based on Statistical Principles
e.g. Six Sigma , Quality Circles
 Unit-1( Introduction to Statistics) Vivek Sharma

L2- LESSON 2

Uses of Statistics

Helps a business organization to

find out the number of potential
customers in a specific area, their
income level and preferences etc.
recognize its competitors and
trends in the market
 Unit-1( Introduction to Statistics) Vivek Sharma

L2- LESSON 2

Limitations of Statistics

Does not deal with an

individual. It is used in plural
sense.(For example, a students
marks in Mathematics is not
considered Statistics.)
 Unit-1( Introduction to Statistics) Vivek Sharma

L2- LESSON 2

Limitations of Statistics

Not suitable for Qualitative

Phenomena.
Based on the collected data
which may not be 100% correct,
can lead to wrong results.
 Unit-1( Introduction to Statistics) Vivek Sharma

L2- LESSON 2

Limitations of Statistics

Statistics is liable to be misused.

Should be analyzed and used by
experts.