Introduction to Statistics

Karl Pearson

Godfrey Achenwall

Prof. Bowley

Adam Smith

Statistical methods

Numerical data

Qualitative aspects

Economic theories

Single numerical figure

Aggregate of facts

Qualitative description

Subjective opinion

Only data

Statistical methods

Government policies

Mathematical formulas only

Collection of data

Production of goods

Presentation of data

Interpretation of data

All facts must be expressed in numbers

Words can be used instead of numbers

Qualitative data is superior

Statistics deals only with words

To make data look complex

To ensure proper comparison between data

To increase the volume of data

To avoid using mathematics

To complicate economic theories

To provide numerical expression to economic facts

To create unemployment

To restrict trade

Statistics never lie

Statistics can prove anything if misused

Statistics are completely useless

Statistics require no calculation

Unlimited resources

Limited resources relative to wants

Zero wants

Excess production of goods

Person who produces goods

Person who sells goods for profit

Person who consumes goods and services for satisfaction

Person who collects taxes

Destroying goods

Creation or addition of utility

Consuming goods

Hoarding goods

To hoard wealth

To understand allocation of scarce resources

To stop all economic activities

To increase taxes

A student reading a book

A farmer growing wheat

A person sleeping at home

A tourist visiting a museum

They are always accurate

They do not provide the complete story without context and interpretation

They are too expensive

They cannot be written down

Homogeneity of data

Statistics do not study individuals

Results are true on average

Risk of misuse

Wasting resources

Using resources efficiently to maximize satisfaction

Hiding resources

Refusing to use resources

To present complex facts in a definite form

To eliminate the need for economic policies

To create inflation

To increase scarcity

Consumer

Investigator

Producer

Auditor

Working in a factory for a wage

Teaching your own child at home

Running a retail shop

Working as a bank clerk