Chapter: Introduction to Statistics

• Meaning of Statistics

  • Plural Sense (Numerical Data)
    • Aggregate of facts
    • Affected by multiple causes
    • Numerically expressed
    • Enumerated or estimated
    • Collected in a systematic manner
    • Placed in relation to each other
  • Singular Sense (Statistical Methods)
    • Collection of data
    • Organization of data
    • Presentation of data
    • Analysis of data
    • Interpretation of data

• Functions of Statistics

  • Expresses facts in numbers
  • Simplifies complex data
  • Facilitates comparison
  • Enlarges knowledge
  • Formulates policies
  • Forecasts future trends

• Scope of Statistics

  • Nature of Statistics
    • Is it a science?
    • Is it an art?
  • Subject Matter
    • Descriptive statistics
    • Inferential statistics
  • Limitations of Statistics
    • Study of numerical facts only
    • Does not study individuals
    • Results are true on average
    • Can be misused

• Distrust of Statistics

  • Meaning
    • Lack of confidence in statistical methods and results
  • Causes
    • Bias of the investigator
    • Defective methods of collection
    • Wrong interpretation

• Importance of Statistics in Economics

  • Quantitative expression of economic problems
  • Inter-sectoral and inter-temporal comparison
  • Working out cause and effect relationship
  • Construction of economic theories
  • Economic planning and forecasting