Master of Business Administration- MBA Semester 1 MB0040 Statistics for Management Assignment Set - 1

Q1. Define Statistics. What are the functions of Statistics? Distinguish between Primary data and Secondary data. Ans Statistics as a discipline is considered indispensable in almost all spheres of humanknowledge. There is hardly any branch of study which does not use statistics. Scientific,social and economic studies use statistics in one form or another. These disciplines make-use of observations, facts and figures, enquiries and experiments etc. using statistics andstatistical methods. Statistics studies almost all aspects in an enquiry. It mainly aims atsimplifying the complexity of information collected in an enquiry. It presents data in asimplified form as to make them intelligible. It analyses data and facilitates drawal of conclusions. Now let us briefly discuss some of the important functions of statistics Presents facts in. simple form:Statistics presents facts and figures in a definite form. That makes the statement logical andconvincing than mere description. It condenses the whole mass of figures into a singlefigure. This makes the problem intelligible. Reduces the Complexity of data:Statistics simplifies the complexity of data. The raw data are unintelligible. We make themsimple and intelligible by using different statistical measures. Some such commonly usedmeasures are graphs, averages, dispersions, skewness, kurtosis, correlation and regressionetc. These measures help in interpretation and drawing inferences. Therefore, statisticsenables to enlarge the horizon of one's knowledge. Facilitates comparison:Comparison between different sets of observation is an important function of statistics. Comparison is necessary to draw conclusions as Professor Boddington rightly points out. the object of statistics is to enable comparison between past and present results to ascertainthe reasons for changes, which have taken place and the effect of such changes in future. Soto determine the efficiency of any measure comparison is necessary. Statistical devices likeaverages, ratios, coefficients etc. are used for the purpose of comparison. Testing hypothesis:Formulating and testing of hypothesis is an important function of statistics. This helps indeveloping new theories. So statistics examines the truth and helps in innovating new ideas. Formulation of Policies :Statistics helps in formulating plans and policies in different fields. Statistical analysis of data forms the beginning of policy formulations. Hence, statistics is essential for planners,economists, scientists and administrators to prepare different plans and programmes. Forecasting :The future is uncertain. Statistics helps in forecasting the trend and tendencies. Statisticaltechniques are used for predicting the future values of a variable. For example a

producerforecasts his future production on the basis of the present demand conditions and his pastexperiences. Similarly, the planners can forecast the future population etc. considering thepresent population trends. Derives valid inferences :Statistical methods mainly aim at deriving inferences from an enquiry. Statistical techniquesare often used by scholars planners and scientists to evaluate different projects. These techniques are also used to draw inferences regarding population parameters on the basis of sample information.Statistics is very helpful in the field of business, research, Education etc., some of theuses of Statistics are: Statistics helps in providing a better understanding and exact description of aphenomenon of nature. Statistics helps in proper and efficient planning of a statistical inquiry in any field of study. Statistical helps in collecting an appropriate quantitative data. Statistics helps in presenting complex data in a suitable tabular, diagrammatic andgraphic form for any easy and comprehension of the data. Statistics helps in understanding the nature and pattern of variability of aphenomenon through quantitative observations. Statistics helps in drawing valid inference, along with a measure of their reliabilityabout the population parameters from the sample dataAny statistical data can be classified under two categories depending upon the sources utilized.These categories are,1. Primary data 2. Secondary dataPrimary Data:Primary data is the one, which is collected by the investigator himself for the purpose of aspecific inquiry or study. Such data is original in character and is generated by surveyconducted by individuals or research institution or any organisation.1.

The collection of data by the method of personal survey is possible only if thearea covered by the investigator is small. Collection of data by sending theenumerator is bound to be expensive. Care should be taken twice that theenumerator record correct information provided by the informants.2.

Collection of primary data by framing a schedules or distributing and collectingquestionnaires by post is less expensive and can be completed in shorter time.3.

Suppose the questions are embarrassing or of complicated nature or the questionsprobe into personnel affairs of individuals, then the schedules may not be filledwith accurate and correct information and hence this method is unsuitable4.

The information collected for primary data is mere reliable than those collectedfrom the secondary data.Importance of Primary data cannot be neglected. A research can be conducted withoutsecondary data but a research based on only secondary data is least reliable and may have biasesbecause secondary data has already been manipulated by human beings. In statistical surveys it isnecessary to get information from primary sources and work on primary data: for example, thestatistical records of female population in a country cannot be based on newspaper, magazin