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Statistics

Statistics
Imposing form of mathematics Tables, charts and figures E.g. i) Female ratio: 933 (2001) R-946, U-900, Highest in Kerala-1058, Lowest in Haryana 861, ii) Per capita income has gone from .in 1990-91 to ..2009-10, iii) density of population has gone up from.in 1991 to .in 2001/2011 Numbers plays an essential role in statistics. They provide raw material of statistics These material must be processed to be useful

Statistics
The word statistics comes from the Italian word Statista (meaning stateman) or the German word Statistik (political state). It was first used by Gottfried Achenwall (17191772), a professor at Marlborough and Gottingen. Croxton and Cowden- Statistics may be defined as the collection, presentation, analysis and interpretation of numerical data

Statistics
Collection
Reliable data

Organization
Editing, Classify

Presentations
Diagrams Graphs

Analysis
Measure of central tendency, measures of variation, correlation, regression, etc.

Interpretation
Drawing the conclusion from the data collected and analysed

FUNCTIONS OF STATISTICS
The following are the important functions of the science of Statistics: It presents facts in a definite form It simplifies mass of figures. It facilitates comparison. It helps in formulating and testing hypothesis. It helps in prediction. It helps in the formulation of suitable policies.

1. Definiteness
Numerical expressions are convincing and, therefore, one of the most important functions of statistics is to present general statements in a precise and definite form. Statements of facts conveyed in exact quantitative terms are always more convincing than vague utterances. Statistics presents facts in a precise and definite form and thus helps proper comprehension of what is stated. Consider, for example, a statement: "The production of food grains in India in 2008-09 was higher than that in 2000-01, The reader will not have a clear idea of the situation from the statement. He would surely like to know what is the extent of decrease in wheat production.

1. Definiteness
On the other hand, if we quantify the statement as , "The production of wheat for the year 2008-09 was 234.47 million tonnes which was 19.33 per cent higher than in 2000-01", it conveys a definite information. Similarly, statements like There is a lot of unemployment in India; The population of India is growing at a very fast rate and The prices of various commodities are rising, etc., hardly convey any worthwhile information as they do not specify the numerical dimensions involved

2. Condensation
Not only does statistics present facts in a definite form but it also helps in condensing mass of data into a few significant figures. In a way, statistical methods present a meaningful overall information from the mass of data. Thus, it is impossible for one to form a precise idea about the income position of the people of India from a record of individual incomes of the entire population. However, figures of per capita income can be easily remembered by everyone.

3. Comparison
Unless figures are compared with the others of the same kind, they are often devoid of any meaning. For example, examine the statement that "the production of rice in 2009-10 is likely to be less as compared to 2008-09." The reader would not get a clear picture from the statement. But if we make a statement that the production of rice in 2009-10 is likely to be 89.13 million tonnes as compared to 99.18 million tonnes in 2008-09, it conveys a definite meaning.

4. Formulating and testing Hypothesis


Statistical methods are extremely helpful in formulating and testing hypothesis and to develop new theories. For example , hypothesis like whether a particular coin is fair or not, whether chloromycetin is effective in curing typhoid , whether the credit squeeze is effective in checking price increases, whether students have benefited from the extra-coaching , etc. , can be tested by appropriate statistical tools.

5. Prediction
Plans and policies of organizations are invariably formulated well in advance of the time of their implementation. A knowledge of future trend is very helpful in framing suitable policies and plans. Statistical methods provide helpful means of forecasting future events. For example, if Cement Corporation of India has to decide how much cement it should produce in 2012-13, it must know the expected demand for the year. It may use subjective judgment and make a guess. However, a better method would be to analyse the sales data of the past years or arrange a statistical survey of the market to obtain necessary data for estimating the sales volume for the next year.

6. Formulation of suitable policies


Statistics provide the basic material for framing suitable policies. For example, data about population, its distribution by age and sex and other socio-economic characteristics, the rate of growth of population, migration, area, etc., help in determining the future needs such as food, clothing, housing, education, recreational facilities, water, electricity, transportation system. Similarly, detailed information on the unemployed persons like what types of qualifications, skills, experiences they have would go a long way in framing suitable policy to tackle the problem of unemployment. It would be no exaggeration to say that whether it be peace or war or any problem relating to economic, social or political issue in the absence of adequate, accurate and timely data, it would be difficult, rather impossible, to frame suitable policies. Also it may be pointed out that it is not only in the formulation of appropriate policies but also in seeing that they are properly implemented that statistics play a vital role.

Robert W. Burgess has beautifully summed up the functions of Statistics as "The fundamental gospel of statistics is to push back the domain of ignorance, rule of thumb, arbitrary or premature decision, traditions and dogmatism and to increase the domain in which decisions are made and principles are formulated on the basis of analysed quantitative facts."

SCOPE OF STATISTICS
The scope of statistics is so vast and ever-expanding that not only it is difficult to define it but also unwise to do so. Statistics pervades all subject-matter - its use has permeated almost every facet of our lives. It is a tool of all sciences, indispensable to search and intelligent judgment and has become a recogniscd discipline in its own right. There is hardly any field whether it be trade, industry or commerce, economics, biology, botany, astronomy, physics, Chemistry, education, medicine, sociology, psychology, or meteorology where statistical tools are not applicable. In fact, greatest victory of mankind of the 20th century, that of landing of Apollo II on the moon, would not have been a success in the absence of statistical help. The applications of statistics are so numerous that it is often remarked "statistics is what statisticians do."

It may be pointed out that in the last few decades there has been a virtual explosion in the use of statistical methods. This has been particularly true in recent years with the advent and accessibility of high speed digital computers which have the capacity to process large amounts of information.

Limitation of Statistics
Despite the usefulness of statics in many fields, impression should not be carried that statistics are like magical devices which always provide the correct solution to problems. Unless the data are properly collected and cortically interpreted, there is every like hood of drawing wrong conclusions. Therefore, it is necessary to know the limitation and the possible misuses of statistics

Limitations
Statistics dose not deal with individual measurements Statistics deals only with quantitative characteristics Statistics results are true only on an average Statistics is only one of the methods of studying a problem Statistics can be misused

Organizing a statistical survey


Data constitute the foundation of statistical analysis Statistical surveys are the most popular devise of obtaining the desired data. A survey is a process of collecting data from existing population units with no particular control over factor that may affect the population characteristics of interest in the study Statistical survey may be either a general purpose survey or a special purpose survey.

Organizing a statistical survey


Planning of survey Executing the survey

Survey: Survey or experiment is a devices of obtaining the desired data Statistical design: It involves identifying a decision problem and choosing an approach to solving the problem Population: is the totality of items or things under consideration Sample: A sample is any group of measurements selected from a population for analysis

Elementary units: The individual items in a population Statistical units: the unit in terms of which the investigator counts or measures the variable or attributes selected for enumeration, analysis and interpretation Frame: listing of all units in the population under study Primary data Secondary data

Planning the survey


Proper planning of survey is of paramount importance
Purpose of the survey or the statement of problem Scope of the survey Unit of data collection Sources of data (i.e. primary, secondary or both) Technique of data collection (sample or census and if sample, the method of sampling) Choice of a frame, or construction of a frame, if none is available Degree of accuracy desired Miscellaneous consideration

Executing the Survey


Setting up an administrative organization Design of forms Selection, training and supervision of the field investigators Control over the quality of the field work and field edit Follow-up of non-response Processing of data Preparation of report

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