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Functions of Statistics

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Presentation on theme: "Functions of Statistics"— Presentation transcript:

1 Functions of Statistics vijay.gahlawat@gmail.com

2 Numerical and Definite Expression of facts Simple and condensed presentation of facts To provide techniques for making comparisons Establishment of Relationship between facts Enlargement of Individual knowledge and Experience Helpful in formulation of policies Formulates and Tests hypothesis Helpful in forecasting

3 Numerical and Definite Expression of facts Statistics deals with the quantitative statements of fact and thus presents them in numerical and definite form. Quantitative statements of facts are always more convincing than vague statements. For Eg., the statements like ‘the birth rate in India is decreasing, trade deficit is being balanced, etc. hardly carry any worthwhile information without any mention of the numerical dimensions involved. In other words, these statements can be made impressive if they are presented in numerical form also it is done by statistics.

4 Simple and Condensed presentation of facts Human mind is incapable of remembering a large number of facts and figures at any one time. Therefore, the important function of statistical methods is to simplify the complex data into diagrammatic and graphic representation, averages and dispersion etc. The huge masses of data cab be converted into a picture, a diagram, etc. which are easier to understand. For eg., we can not remember the marks obtained by 50 students ; but it is easy to remember the average marks of the students in a single figure, say 60%.

5 To provide techniques for making comparison Comparison is one of the chief functions of statistics as the absolute figures convey a very little meaning. Statistical devices like averages, ratios, %, rates, coefficients, etc. are the tools that make comparison possible. The comparison between two phenomena enable us to draw useful conclusions therefrom. For eg., we estimate national income of India not for itself, but to compare the income now with the past and thus draw conclusions as to whether the standard of living the people in general is improving.

6 Establishment of Relationship between facts One important functions of statistics is to make possible the functional relationship between two or more phenomena. Coefficient of correlation, coefficient of association, regression etc. are the measures through which we measure the functional relationship. For eg., it is possible to observe the relationship between income and expenditure, demand and supply, literacy and employment, etc., through statistical methods.

7 Establishment of Relationship between facts One important functions of statistics is to make possible the functional relationship between two or more phenomena. Coefficient of correlation, coefficient of association, regression etc. are the measures through which we measure the functional relationship. For eg., it is possible to observe the relationship between income and expenditure, demand and supply, literacy and employment, etc., through statistical methods.

8 Enlargement of individual knowledge & Experience The main function of statistics is to enlarge our knowledge of complex phenomena and to lend precision to our ideas that would otherwise remain vague and indeterminate. Statistics increases the field of mental vision as a telescope that increases the field of physical vision. Infact, many fields of knowledge would have remained closed to mankind, without the efficient and useful techniques of statistical analysis.

9 Helpful in Formulation of Policies Statistics helps in formulating policies in social, economic and business fields. Various government policies in the field of planning, taxation, foreign trade, social security, etc., are formulated on the basis of analysis of statistical data and the inferences drawn from them. For eg., vital statistics comprising birth and mortality rates help in assessing future growth in population. This information is necessary for designing any scheme of family planning.

10 Formulates and Test Hypothesis Statistical methods are extremely useful in formulating and testing hypothesis. For eg., hypothesis like whether coaching is effective in improving the performance of the students, can be tested by appropriate statistical tools. Only after the effectiveness of a medicine is established by the convincing statistical techniques, a pharmaceutical company can venture to produce a medicine.

11 Helpful in Forecasting Almost all our activities are based on estimates about future and the judicious forecasting of future trends is a prerequisite for efficient implementation of policies. The statistical techniques for extrapolation, time series and forecasting are highly useful for forecasting future events.

12 Functions or Uses of Statistics (1) Statistics helps in providing a better understanding and exact description of a phenomenon of nature. (2) Statistical helps in proper and efficient planning of a statistical inquiry in any field of study. (3) Statistical helps in collecting an appropriate quantitative data. (4) Statistics helps in presenting complex data in a suitable tabular, diagrammatic and graphic form for an easy and clear comprehension of the data. (5) Statistics helps in understanding the nature and pattern of variability of a phenomenon through quantitative obersevations. (6) Statistics helps in drawing valid inference, along with a measure of their reliability about the population parameters from the sample data. Functions or Uses of Statistics


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