Introduction to Statistics

Statistics refers to the body of principles and procedures developed for collection, classification, summarization and interpretation of numerical data and for the use of such data. Without the use of statistical methods an organization would find it impossible to make sense of huge data. Purpose of statistics is to manipulate, summarize and investigate data so that useful decision making information results.

ORIGIN OF STATISTICS Origin in latin word Status Italian word Statista German word Statistik. All the 3 terms mean POLITICAL STATE. In fact beginning of statistics was made to meet administrative needs of the state. In ancient periods states were required to collect statistical data for 2 purposes: 1.Concerning population, so that state may come to know number of Youngman in country that can be recruited for army. 2.Concerning land holdings so that state may calculate the total amount of land revenue that can be collected. 3. Also known as Science of Statecraft or Political Arithmetic.

MEANING OF STATISTICS Plural Sense : Refers to numerical statements of facts relating to any field of enquiry such as data relating to production, income, expenditure, prices etc. Or NUMERICAL DATA OR STATISTICAL DATA. Singular sense : Refers to science in which we deal with techniques or methods for collecting, classifying, presenting, analysing and interpreting the data. Or STATISTICAL METHODS STATISTICS = PLURAL + SINGULAR  DATA + STATISTICAL METHODS

DEFINITIONS OF STATISTICS DEFINITION IN PLURAL SENSE DEFINITION IN SINGULAR SENSE

In Plural Sense as Numerical Data “Statistics are numerical statements of facts in any department of enquiry placed in relation to each other.” --- Bowley “By statistics we mean quantitative data affected to a marked extent by multiplicity of causes.” --- Yule & Kendall “ Statistics are numerical descriptions of quantitative aspects of things and they take the form of counts or measurements.” --- Wallis & Roberts

MOST POPULAR DEFINITION BY HORACE SECRIST “By Statistics we mean aggregate of facts affected to a marked extent by multiplicity of causes numerically expressed, enumerated or estimated according to reasonable standards of accuracy, collected in a systematic manner for a pre-determined purpose and placed in relation to each other.”

Features/ Characteristics in plural sense Aggregate of facts Numerically expressed Affected by multiplicity of causes Reasonable Accuracy Placed in relation to each other Pre-determined purpose Enumerated or estimated Collected in systematic manner

In Singular Sense as Statistical methods “Statistics may be defined as collection, presentation, analysis and interpretation of numerical data.” --- Croxton & Cowden “Statistics is a science which deals with the collection, classification and tabulation of numerical facts as a basis for the explanation, description and comparison of phenomena.” --- Lovitt

“Statistics is a science which deals with the methods of collecting, classifying, presenting, comparing and interpretting numerical data collected to throw some light on any sphere of enquiry.” --- Seligman

Features of Statistics as statistical methods Collection of data Organisation of data Presentation of data Analysis of data Interpretation of data

Scope of Statistics scope Nature Subject Matter Limitations

DISTRUST OF STATISTICS Distrust of statistics means lack of confidence in statistical methods and statements. “Statistics are the lies of the first order”. The Paris Banker stated “Statistics are like miniskirts. They cover up the essentials but give you the ideas.” In the same fashion it has been stated that “An ounce of truth will produce tons of statistics.” It is generally stated by people that “There are three types of lies-lies, damned lies and statistics wicked in the order of their naming.” Statistics can prove anything, so some people do not have confidence in data, statistical statements and statistical methods.

The persons, who use and handle statistics, should be expert and should use statistical methods with a definite objective. The correct use of statistics leads to correct conclusions and hence correct decisions. In the same fashion wrongful use of statistics leads to fallacious conclusions and hence wrong decisions. Thus a good statistician requires, ‘good judgment, broad knowledge and common sense.’ According to F.C.Mills, “Statistics, as a total, required proper usage and the results obtained through statistical analysis require intelligent interpretation.”

Following points must be kept in view if the arguments based on statistics are of any value. Source of information Reliability of information Their true sense and significance Utility of data in relation to problem in hand Amount of data in relation to problem in hand Manner of summarization

According to Marshall, “Statistical arguments are often misleading at first but free discussion cleans away statistical fallacies.” W.I King rightly pointed out, “The science of statistics in a most useful servant, but only of great value to those who understand its proper use.” According to Bowley, “Statistics only furnish a tool, necessary though imperfect, which is dangerous in the hands of those who do not know its use and deficiencies.”

IMPORTANCE OF STATISTICS Scope in Social Sciences. Scope for Education. Scope for solving the problems. Scope for commerce Scope for formulating the theories. Statistics and Business. Statistics and Mathematics Statistics and Economics. Statistics in Insurance. Statistics in Planning. Statistics and Econometrics Statistics and Physical and Natural Sciences Statistics and the State.

18 THANKS QUERIES : MOST WELCOME Break