Introduction to Statistics

Statistics generally means a numerical description of an event or subject. That is, statistics is the
collection, presentation, analysis and interpretation of numerical data and decision-making.

Origin of Statistics
The origin of statistics has not been fully understood. According to various statisticians, the word
Statistics is derived from Latin word Status or Italian word 'Statista' or German word Statistik. Each
word means a political situation. In ancient times, the kings used to keep statistics of the amount of
revenue, the number of subjects, the number of soldiers, the number of births and deaths, the amount
of land, etc. to manage their affairs. That is why statistics was called the science of kings at that time.
Today, statistics are not limited to state activities. It is a branch of science, where numerical data is
collected, presented, mathematically analyzed and interpreted to make decisions. The famous
statistician R. A. Fisher single-handedly invented many new methods of statistics. For his great
contribution to the development of statistics R. A. Fisher is called the father of statistics.

Definition of Statistics
According to R.A.Fisher. The science of statistics is essentially a branch of applied mathematics and
may be regarded as mathematics applied to observational data.
Accotding Bowlay, Statistics are numerical statement of facts in any department of enquiry placed in
relation to each other.

Nature of Statistics
1. Statistics is a Science:
Statistics is a script in which we get orderly or systematic knowledge. From the point of view of the
prescribed conditions of science, statistics can be called science on the following aspects:-

(i) Statistics is the rule of knowledge and is developing at a very rapid pace.

(ii) Its various policies are widely used in all areas. Law of statistical regularity,theory of Probability,
etc are universal rules.

(iii) Based on the facts of the past and present, future trends are predicted by many statistical methods.

In this way, we can say that it is absolutely appropriate to say science to statistics.

2. Statistics is an Art:
If science is knowledge then art is action i.e., art refers to the branch of knowledge which changes the
best methods for solving various problems and the measures for achieving the facts are also suggested.

Statistics is also an art because of-

(i) Statistics presents solutions, methods, and conclusions for solving the problem of various questions.

(ii) How to use different statistical methods and rules to solve various problems? This thing is also
studied mainly in statistics. For Example, statistics tell us where the use of the arithmetic mean is best
and in which direction the median will be best used? How to create an index and what median should
be used?

(iii) For the behavior of statistical methods, special skills and experience, and self-restraint are required
in the person, which is very necessary for art to say a subject.

3. Statistics is a Scientific Method:

It should be understood in the context of general scientific methods of acquiring knowledge. There are
four aspects to this research;

(i) Observation

(ii) Hypothesis

(iii) Prediction

(iv) Verification

In fact, statistical methods are only a useful tool needed for research, so that Crookston has also
considered statistics as a scientific method.

Scope of Statistics

These are the areas where a person can find the scope of statistics.

• Statistics and Planning

In today's age of planning, statistics has become integral to governmental and organizational strategies.
Governments worldwide rely on statistical data to shape economic development plans and policies.
This practice, commonly known as "the age of planning," showcases the vital role statistics plays in
informed decision-making for the betterment of societies.

• Statistics and Economics

The influence of statistical data and analysis in economics cannot be overstated. It aids in resolving
complex economic issues, such as wage-price trends, inflation, and economic forecasting. The
application of statistical techniques, including time series analysis and regression analysis, empowers
economists to make accurate predictions and informed policy recommendations.

• Statistics and Business

For businesses, statistics is an invaluable tool for understanding customer preferences and behavior.
Through statistical analysis, business executives gain insights into market trends, customer demands,
and purchasing patterns. This knowledge guides product development, marketing strategies, and
customer relationship management, ensuring sustained growth and competitiveness.

• Statistics and Industry

In the industrial sector, statistics plays a crucial role in quality control. Production engineering relies
on statistical tools like inspection plans and control charts to assess whether products conform to
specifications. This quality control ensures consistency and reliability in manufacturing processes,
leading to improved product outcomes.

• Statistics and Mathematics

To further explain the scope of statistics and mathematics, we must note that they share a symbiotic
relationship, with advancements in statistical techniques often rooted in mathematical principles. The
wide application of mathematical concepts enhances statistical analysis methods, contributing to their
accuracy and effectiveness.

• Statistics and Modern Science

In the realm of modern science, statistics aids in the collection and analysis of data related to medical
advancements. In the field of medical science, statistical tools are used to study disease incidence, drug
efficacy, and treatment outcomes. This information is essential for evidence-based medical practices
and improving patient care.

Importance of Statistics

The important functions of statistics are:

• Statistics helps in gathering information about the appropriate quantitative data

• It depicts the complex data in graphical form, tabular form and in diagrammatic
representation to understand it easily
• It provides the exact description and a better understanding
• It helps in designing the effective and proper planning of the statistical inquiry in any field
• It gives valid inferences with the reliability measures about the population parameters from
the sample data
• It helps to understand the variability pattern through the quantitative observations

Functions of Statistics

Statistics performs the following functions

• Reduces complexities: Using statistical methods, voluminous data can be presented in a way
that it can be easily understood. Hence, it reduces the complexity to understand a vast amount
of data, to simplify its meaning.
• Expresses facts in numbers: An important function of statistics is that it can transform facts
into numbers, which is easy to understand by anyone.
• Presentation of data in condensed form: Data collected is usually in raw form, which is
complex and unorganized. Hence, it requires to be presented in a simple form so as to reach a
 final conclusion. With the help of statistics, a large amount of data can be presented in
condensed form.
• Increases the individual knowledge and experience: As the presentation of data is simple,
it enhances the knowledge and experience of people, by making it simple and easy to
understand, without having knowledge of each and every field.
• Different phenomena are compared: Statistics helps in making a comparison of data and
measuring the relationship between them. For example: Suppose a researcher wants to
measure the level of production of soybean in two states, then he/she would use statistics.
• Helpful in the formulation of policies: Plans and policies are developed beforehand in an
organization. And statistics plays a very crucial role in determining the future trends, so as to
frame them, by providing the required information.
• Helpful in prediction and forecasting: The knowledge of statistics is not just helpful in
estimating the present but it also helps in forecasting the future

Limitations of Statistics
1. Qualitative aspect ignored:

The statistical methods don’t study the nature of phenomenon which cannot be expressed in
quantitative terms.

Such phenomena cannot be a part of the study of statistics. These include health, riches,
intelligence etc. It needs conversion of qualitative data into quantitative data.

So experiments are being undertaken to measure the reactions of a man through data. Now a days
statistics is used in all the aspects of the life as well as universal activities.

2. It does not deal with individual items:

It is clear from the definition given by Prof. Horace Sacrist, “By statistics we mean aggregates of
facts…. and placed in relation to each other”, that statistics deals with only aggregates of facts or
items and it does not recognize any individual item. Thus, individual terms as death of 6 persons
in a accident, 85% results of a class of a school in a particular year, will not amount to statistics
as they are not placed in a group of similar items. It does not deal with the individual items,
however, important they may be.

3. It does not depict entire story of phenomenon:

When even phenomena happen, that is due to many causes, but all these causes can not be
expressed in terms of data. So we cannot reach at the correct conclusions. Development of a group
depends upon many social factors like, parents’ economic condition, education, culture, region,
administration by government etc. But all these factors cannot be placed in data. So we analyse
only that data we find quantitatively and not qualitatively. So results or conclusion are not 100%
correct because many aspects are ignored.

4. It is liable to be miscued:

As W.I. King points out, “One of the short-comings of statistics is that do not bear on their face
the label of their quality.” So we can say that we can check the data and procedures of its
approaching to conclusions. But these data may have been collected by inexperienced persons or
they may have been dishonest or biased. As it is a delicate science and can be easily misused by
an unscrupulous person. So data must be used with a caution. Otherwise results may prove to be
disastrous.

5. Results are true only on average:

As discussed above, here the results are interpolated for which time series or regression or
probability can be used. These are not absolutely true. If average of two sections of students in
statistics is same, it does not mean that all the 50 students is section A has got same marks as in
B. There may be much variation between the two. So we get average results.

“Statistics largely deals with averages and these averages may be made up of individual items
radically different from each other.” —W.L King

6. To Many methods to study problems:

In this subject we use so many methods to find a single result. Variation can be found by quartile
deviation, mean deviation or standard deviations and results vary in each case.

“It must not be assumed that the statistics is the only method to use in research, neither should
this method of considered the best attack for the problem.” —Croxten and Cowden

7. Statistical results are not always beyond doubt:

“Statistics deals only with measurable aspects of things and therefore, can seldom give the
complete solution to problem. They provide a basis for judgement but not the whole judgment.”
—Prof. L.R. Connor

Although we use many laws and formulae in statistics but still the results achieved are not final
and conclusive. As they are unable to give complete solution to a problem, the result must be
taken and used with much wisdom.