Module 1: Introduction to Statistics

The word statistics is derived from Latin word status, German

word statistik and French word statistique which means a state
or a political state. Thus Statistics is associated with
Administrative Affairs of the state. For efficient
administration government requires about food production,
imports, exports and defence force. There are many people
who made contribution to statistics such as Francis Galton,
Bernoulli, Karl Pearson etc but Ronald Fisher is called Father
of Statistics.he showed how statistical techniques can be used
in the field of medicine, psychology, agriculture, etc.
Meaning of Statistics: It is used in 2 senses,
1) In plural sense it is collection of facts. Prof Horace defined stats as
follows.
• Aggregates of facts affected to a marked extent by multiplicity of
causes, numerically, expressed enumerated or estimated according to
reasonable standards of accuracy, collected in systematic manner for a
pre-determined purpose and placed in relationship with each other.
1) In singular sense it is the science of collection, presentation, analyses
and interpretation of numerical data.
• A L Bowley defined statistics as science of counting. Later he
redefined it as science of averages.
• Boddingtons defined stats as science of estimates and probabilities.
• Croxton and Cowden defined stats as science of collection,
presentation, analyses and interpretation of numerical data.
According to Prof Horace, the following characteristics of statistics can
be noticed:
•Aggregates of facts.
•Affective to a marked extent by a multiplicity of causes.
•Numerically expressed
•Enumerated or estimated according to resonable standards of accuracy
•Collected in systematic manner.
•Collected for a pre-determined purpose.
•Placed in relationship to each other.
Branches of Statistics:
1. Statistical Methods: It deals with general statistical analyses of
numerical data. It supplies devices and techniques required for
decision making.
2. Applied Statistics: It deals with application of statistical devices and
techniques in the analyses of data relating to other sciences like
demography, Econometrics, Medicine etc.
Scope and Applications
Initially stats was used by government officials for the purpose of administration.
Hence its scope was limited however as the time passed, the science became more
popular and its field of application widened.now statistical techniques are used in
medicine, agriculture, commerce, Industries etc. In Biology it is used to study the
effect of newly invented medicines, theories of hereditary, birth and death rate,
population growth etc.
Stats in Economics Commerce and Business.
Statistical analyses of variations of price, demand and production are helpful to
businessmen and economists. Analyses of demand, price, production etc help in
decision making inbusiness activities.Mgmt of limited resources and labour in
obtaning maximum profit is done y statistical analyses of the data. Planned
recruitments and distribution of staff, personal mgmt, HRD, quality control
methods, capture of markets by advertisments, Balanced investment etc help the
producer to extract maximum profit out of minimum capital. SQC Techniques
help in Increasing and controlling the quality of products at minimum costs. Govt
administrative system is dependent on production, yield, income, labour statistics.
Economic planning is entirely based on statistical facts. Statistics has become so
important that it is said that “science without statistics bear no fruit and statistics
Functions of Statistics:
•It simplifies the complexity of the data.
•It reduces the bulk of the data.
•It adds precision t thinking.
•It helps in comparing different sets of figures.
•It guides in the formulation of policies and helps in planning
•It indicates trends and tendencies
•It helps in studing relationships between different factors.
Limitations of Statistics:
1. It does not deal with qualitative data.
2. It does not deal with individual facts.
3. Statistical inferences are not exact.
4. It can be misused.
5. Common man cannot handle statistics.
Misuse and Distrust in Statistics.
Statistics can be misused it makes arguments stronger. Hence there is a
general tendency t manipulate in support of arguments and theories.
Some ways by which stats can be misused is:
•Quoting figures without proper context.
•Comparing irregular sets of figure.
•Quoting favorable figures.
•Generalizing from part to whole.
One should not use statistics without knowing their source and
completeness. Growing misuse of stats by politicians, businessmen,
administrators etc has led to distrust in statistics.
Validity of statistical data depends on their method of their collection,
source and the purpose they are intended to serve. Statistics must be
subjected to careful scrutiny before inferences are drawn.
Some Basic Concepts
•Population
•Finite Population
•Sample
•Quantitative Characteristic
•Qualitative Characteristic
•Variable
•Attribute
•Discrete Variable
•Continuous Variable
•Nominal Data
•Ordinal Data
Statistical Investigation: A study of characteristics of units of a
population by using statistical devices and techniques is called
statistical devices.The investigation maybe:
1. To prove a newly formed theory concerning a population.
2. To know the existing nature of the population.
3. To formulate a new theory concerning the population.
Stages of Statistical Investigation
A) Planning and Preparation
B) Execution of the Survey
A) Planning and Preparation
• Purpose of the survey (object of the survey)
• Scope of the survey
• Preparation of the frame
• Type of survey (Census enumerated or Sample survey)
• Type of data collected (primary or secondary data)
• Statistical units to be used
• Degree of accuracy desired
• Statistical techniques to be adopted for analyses and decision
making
B) Execution of the Survey.
•Collection of data
•Scrutiny, Editing and Presentation of data
•Analyses of the data
•Interpretation of analyzed data
Thank You