Definition of Statistics

Define Statistics:

Statistics is a mathematical science pertaining to the collection, analysis, interpretation or explanation, and presentation of data. It also provides tools for prediction and forecasting based on data. It is applicable to a wide variety of academic disciplines, from the natural and social sciences to the humanities, government and business. Statistical methods can be used to summarize or describe a collection of data; this is called descriptive statistics. In addition, patterns in the data may be modeled in a way that accounts for randomness and uncertainty in the observations, and are then used to draw inferences about the process or population being studied; this is called inferential statistics. Descriptive, predictive, and inferential statistics comprise applied statistics. There is also a discipline called mathematical statistics, which is concerned with the theoretical basis of the subject. Moreover, there is a branch of statistics called exact statistics that is based on exact probability statements. The word statistics can either be singular or plural. In its singular form, statistics refers to the mathematical science discussed in this article. In its plural form, statistics is the plural of the word statistic, which refers to a quantity (such as a mean) calculated from a set of data.

Definition of Statistics, Scope and importance of Statistics:Statistics in business and management: Frequency distribution: Parts of table:Definition of Statistics:

1. Statistics can be defined as the collection presentation and interpretation of numerical data.- Croxton and Crowed.

2. Statistics are numerical statement of facts in any department of enquiry placed interrelation to each other.- Bouly.

3. Statistics are measurement, enumerations or estimates of natural or social phenomena systematically arrangement to exhibit their inner relation.- Conner.

4. By Statistics we mean quantitative data affected to a marked extend by a multiplicity of causes. – Youle and Kendal.

5. The science of Statistics is essentially a branch of applied mathematics and can be regarded as a mathematics applied to observation data.- R.A fisher.

Scope and importance of Statistics:

1. Statistics and planning: Statistics in indispensable into planning in the modern age which is termed as “the age of planning”. Almost all over the world the govt. are re-storing to planning for economic development.

2. Statistics and economics: Statistical data and techniques of statistical analysis have to immensely useful involving economical problem. Such as wages, price, time series analysis, demand analysis.

3. Statistics and business: Statistics is an irresponsible tool of production control. Business executive are relying more and more on statistical techniques for studying the much and desire of the valued customers.

4. Statistics and industry: In industry statistics is widely used inequality control. In production engineering to find out whether the product is confirming to the specifications or not. Statistical tools, such as inspection plan, control chart etc.

5. Statistics and mathematics: Statistics are intimately related recent advancements in statistical technique are the outcome of wide applications of mathematics.

6. Statistics and modern science: In medical science the statistical tools for collection, presentation and analysis of observed facts relating to causes and incidence of dieses and the result of application various drugs and medicine are of great importance.

7. Statistics, psychology and education: In education and physiology statistics has found wide application such as, determining or to determine the reliability and validity to a test, factor analysis etc.

8. Statistics and war: In war the theory of decision function can be a great assistance to the military and personal to plan “maximum destruction with minimum effort.”

Statistics in business and management:

1. Marketing: Statistical analysis are frequently used in providing information for making decision in the field of marketing it is necessary first to find out what can be sold and the to evolve suitable strategy, so that the goods which to the ultimate consumer. A skill full analysis of data on production purchasing power, man power, habits of compotators, habits of consumer, transportation cost should be consider to take any attempt to establish a new market.

2. Production: In the field of production statistical data and method play a very important role. The decision about what to produce? How to produce? When to produce? For whom to produce is based largely on statistical analysis.

3. Finance: The financial organization discharging their finance function effectively depend very heavily on statistical analysis of peat and tigers.

3. Banking: Banking institute have found if increasingly to establish research department within their organization for the purpose of gathering and analysis information, not only regarding their own business but also regarding general economic situation and every segment of business in which they may have interest. 

4. Investment: Statistics greatly assists investors in making clear and valued judgment in his investment decision in selecting securities which are safe and have the best prospects of yielding a good income.

5. Purchase: the purchase department in discharging their function makes use of statistical data to frame suitable purchase policies such as what to buy? What quantity to buy? What time to buy? Where to buy? Whom to buy?

6. Accounting: statistical data are also employer in accounting particularly in auditing function, the technique of sampling and destination is frequently used.

7. Control: the management control process combines statistical and accounting method in making the overall budget for the coming year including sales, materials, labor and other costs and net profits and capital requirement. 

Frequency distribution:

* A set of classes together with the frequencies of occurrences of values in each class in a given set of data, presented in a tubular form is referred a frequency distribution.

* frequency distribution is grouping of data into mutually exclusive classes showing no of observations in each class.

Parts of table:

The various parts of table may vary from case to case depending upon the given data. But a good table must contain at least the following parts:

Table no, title of the table, caption, stub, body of the table, head note, gootnote.

The importance of statistics in recent years cannot be over emphasized. The development in statistical studies has considerably increased its scope and importance. It is no longer regarded as the science of statecraft or a by-product of state administration. Now it embraces a host of sciences-social, physical and natural. Statistical findings have assumed unprecedented dimensions these days. Statistical thinking has became indispensable for able citizenship. Statistics is of immense use in the following cases.

1. In Planning:

Planning is necessary for efficient workmanship and in formulating future policies. Statistics provides the valued interpretation of facts and figures relevant to planning. Planning depends on forecasting the future. Statistics provides the necessary tools of estimation and forecasting. So statistics is indispensable in planning.

2. In Business :

Statistical knowledge is very helpful to the businessman. He formulates different plans and policies using statistics. It helps him in forecasting the future trends and tendencies. To estimate the market fluctuations, changes in the demand conditions etc. statistical techniques are often used. Hence for becoming a successful businessman, ideas in statistics are essential.

3. In Economics :

Statistics are the ‘straws out of which Economists have to make bricks’. Statistics indispensable in economic studies. Statistical data and their analysis are used to solve a variety of economic problems such as in consumption, production, distribution of income and assets, poverty, unemployment etc. These problems are described, compared and correlated by using statistics. Use of statistics in Economics has led to the formulation of many economic laws like Engel’s law of consumption, Pareto’s Laws of distribution of income etc. Similarly statistical tools like index numbers are sued as economic barometers.

4. In administration :

In ancient times statistics was used as the science of statecraft. It was used to collect data relating to manpower, crimes, income etc. for formulating different policies. In modem times, its role has become manifold. It has become indispensable for the administrators. It is being widely used formulating and forecasting different plans and policies of the state administration.

5. In Business Management:

Business manager take decisions in the face of uncertainty. Statistical tools like collection classification, analysis and interpretation of data are essential in business-management. The success of modem business primarily depends on accurate forecasting of the future demand and mark trends. For this statistics is essential. Hence statistics is widely used in business management.

6. In research activities :

One cannot think of undertaking any research activities without using statistics. Primarily, statistical techniques are used for collecting information in any research. Besides, statistical methods are used for analysis and interpretation of research findings. Thus there is hardly any branch of study where statistics is not being used. It is used in all spheres of human activities.