GRADE -11 STATISTICS

Ch:01 MEANING, SCOPE AND IMPORTANCE OF STATISTICS

DEFINITION OF STATISTICS:
The systematic treatment of quantitative expressions is known as statistics .

TYPES OF DATA USED IN STATISTICS:

Statistics uses two types of data termed as :
a) QUALITATIVE DATA

b) QUANTITATIVE DATA
QUALITATIVE DATA : Qualitative Data is also called as non-quantifiable
data. It is measured in percentages.The analysis in this case is generally quality
based.Example: Prefrence of people viewing TV channels , Intelligence of
students etc.
QUANTITATIVE DATA :When information or observations are recorded in
numbers or quantities , it is termed as Quantitative Data.
Example: Number of students in a hostel, income of individuals etc.

TWO WAYS OF DEFINING STATISTICS :

Statistics can be defined in two ways :
a) Statistics in plural sense
b) Statistics in singular sense

STATISTICS DEFINED IN PLURAL SENSE :

In plural sense, statistics refers to aggregates of facts affected to a market
extent by multiplicity of causes, numerically expressed, enumerated or
estimated according to reasonable standards of accuracy, which is collected in a
systematic manner for predetermined purpose and played in relation to each
other. Example: Data relating to aggregate percentage of 5 toppers of 12 th class
of a single school.
CHARACTERSTICS :

1. Aggregate of Facts: A single observation is not statistics but a group

of observations is statistics.Example : A single age of 30 years is not
statistics but a series of data related to age is statistics.
2. Affected by multiplicity of causes :
 Statistics are generally not isolated facts and are certainly influenced by
a number of factors. Example : Electricity bills are affected by
consumption and rate of electricity
3. They are numerically expressed :
Any facts to be called as Statistics must be numerically expressed .
Example : Isha is taller that Ananya. This statement is not statistics
unless the height of the girls is not expressed in numbers.
4. They should be collected with reasonable standards of accuracy :
In statistics data must be collected with reasonable standards of
accuracy.Since, mass data is involved , there are more chances of
inaccuracy.
5. Statistics are collected in systematic manner :
Data collected without any order or system are unreliable and inaccurate.
It must be collected in a systematic manner.
6. Statistics are collected for a predetermined purpose:
Unless statistics are collected for a specific purpose , it always stands
useless. Example : If you wish to collect statistics for agricultural
production it must be decided prior that what all commodities and regions
are required.
7. Statistics are placed in relation to each other :
Statistical data is often required for comparison. Therefore, they should
be comparable region-wise and commodity wise.

STUDENTS SCHOOL A SCHOOL B

BOYS 1600 700

GIRLS 400 300

TOTAL 2000 1000

STATISTICS DEFINED IN SINGULAR SENSE :Statistics may be defined as

science of collection, presentation , analysis and interpretation of numerical
data .There are various stages of a statistical study which can be defined as :
STAGE 1: COLLECTION OF DATA
Data should be gathered with maximum care by the investigator himself or must
be obtained from a reliable source.
STAGE 2 : ORGANISATION OF DATA
Figures that are collected by an investigator need to be organized by counting,
classifying and tabulating.
STAGE 3 : PRESENTATION OF DATA
Data collected and organized must be presented in some systematic manner to
make the study of statistics easy. The organized data can be presented with
the help of tables, graph ,diagrams etc

STAGE 4: ANALYSIS OF DATA

The presented data must be analysed by using various tools such as averages,
dispersion and correlation etc.

STAGE 5 : INTERPRETATION OF DATA

This is the last stage of any statistical data. It implies drawing of conclusions on
the basis of data analysed at an early stage which in future helps to take
certain decisions.

INTERPRETATION OF DATA
ANALYSIS OF DATA
PRESENTATION OF DATA
ORGANISATION OF DATA
COLLECTION OF DATA

FUNCTIONS OF STATISTICS

1. Statistics simplifies complex data :

With the help of various statistical tools, a huge collection of data can be
presented in such manner that they become easy to understand use of averages,
percentages etc are its examples.
2. Statistics presents the facts in definite form :
By stating conclusions in a numerical form, it gives a definite shape to the facts.
3. Statistics provides a technique of comparison:
Comparison is an important function of statistics as it is helpful in drawing
economic conclusions. Example: Comparison of data of different regions.
4. Statistics studies relationships:
It helps in finding the relationships between two or more factors such as
literacy and unemployment etc.
 5. Statistics helps in forming policies:
Many policies such as that of export and import are all formed on the basis of
statistics.
6. Statistics helps in forecasting :
Stastics helps to predict the future behavior . Example : Various phenomenons
by analyzing market situations
7. Statistics helps to test and formulate theories:
When some theories have to be tested statistical data and techniques are
very powerful.

IMPORTANCE OF STATISTICS
Statistics helps in particularly in drawing research conclusions
for the following subjects :

a) ECONOMICS
b) ECONOMIC PLANNING
c) BUSINESS PLANNING
d) GOVERNMENT
(A) STATISTICS AND ECONOMICS
Statistics play an important role in the study of economics as :
1. It helps in the study of consumption:
Statistics helps to discover how different groups spend their income relating to
consumption .It also helps in fixing direct taxes like GST etc.
2. It helps in the study of production:
Statistics help in adjusting of demand and supply and makes a comparative study
in the various aspects of production.
3. It helps in the study of exchange :
The theory of price determination is based on demand and supply in the market
and can be studied with the help of statistics.
4. It helps in the study of distribution :
Statistical methods are used in solving the problem of distribution on national
income.
 5. Formulation of Economic Laws :Various laws of economics like “LAW OF
DEMAND” “ ELASTICITY OF DEMAND” have been developed by various
statistical methods.
6. Establishes Mathematical Relationship: Statistical methods can also be
used to estimate mathematical relationships between various economic
variables.Example : Data on prices and corresponding quantities demanded
of the quantity etc.
7. Helps in understanding and solving Economic Problem : Statistical
methods help in solveing economic problem such as poverty,unemployment,
disparities in distribution etc.

(B) STATISTICS AND ECONOMIC PLANNING :

Statistics is the most important tool in business planning as :
 Every phase in planning i.e. drawing a plan, execution and review is
based on statistics.
 The success of an economic plan is dependent on sufficient and
accurate statistical data available at all stages,
 Various problems such as overpopulation, lack of education can be fully
reviewed and understood only by getting the actual figure.

(C) STATISTICS AND BUSINESS PLANNING :

 The producer estimates the demand of goods and services and
looks for market research based on various statistical methods.
 Insurance companies function on the basis of estimations of
mortality rates etc and calculate insurance premium with the
use of statistics.
 It is equally important for subsidiaries of trade.
(D) STATISTICS AND GOVERNMENT:
 Before formulating policies, the government must consider
certain statistics such as taxes, wealth, trade etc.
 Statistics is indispensable for all important functions of the
ministry of state.
 Statistical techniques also help in analyzing the impact of
various government policies like demonetization.

LIMITATIONS OF STATISTICS :
There are a lot of misuses and limitations of statistics which are stated below:
1. It doesnot study the qualitative aspect of a problem:
Qualitative phenomenon like honesty, intelligence etc cannot be studied in
statistics unless these attributes are expressed in terms of numericals.

2. It doesn’t study individuals :

It is the study of mass data and always deals with aggregates thereby ignoring
a single value for analysis.
3. Statistical laws are true only on an average:
Statistical laws are not universally true as they are affected by a large
number of causes.

4. Statistics can be misused:

Statistics is liable to be misused as the results obtained can be manipulated
according to people’s interest.

5. Statistical data lack mathematical accuracy :

The statistical results drawn are generally in approximates. Therefore, number

of inaccuracies may be present and it is difficult to rectify them .

6. Statistical data must be homogeneous

For comparison, it is essential that statistical data is uniform in nature.
Hetrogeneous data must not be compared.

Example : Production of rice , cannot be compared with production of milk as

both are measured in different units.

7. Only experts can make the Best Possible use of Statistics :

The techniques of statistics are not so simple to be used by any layman. These
techniques can only be used by the experts as they are complicated in nature.