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Understanding Statistics & How to Deal With Statistics Homework

In a plural sense, Statistics refers to information in terms of numbers or numerical data such as population statistics, employment statistics etc. However, any numerical information is not statistics. All the statistics are data but all data are not statistics. In a singular sense, statistics means the science of statistics or statistical methods. In refers to techniques relating to collection, classification, presentation, analysis and interpretation of quantitative data. Each stage of statistical study involves the use of certain standard methods. These methods are called statistical tools.

Stages	Statistical Study	Statistical Tools
FIRST	Collection of Data	Census and Sample techniques
SECOND	Organization of Data	Array of data and Tally Bars
THIRD	Presentation of Data	Tables, graphs and diagrams
FOURTH	Analysis of Data	%, Averages, and Correlation
FIFTH	Interpretation of Data	Magnitude of percentages, Averages

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FEATURES OF STATISTICS:

AGGREGATE OF FACTS: A single number does not constitute statistics. No conclusion can be drawn from it. It is only the aggregate number of facts that is called statistics as the same can be compared and conclusions can be drawn from it.
COLLECTED IN A SYSTEMATIC MANNER: Statistics should be collected in a systematic manner. Before, collecting them a plan must be prepared.
PREDETERMINED PURPOSE: Statistics are collected with some predetermined purpose. Any information collected without any definite purpose will only be a numerical value and not statistics.
PLACED IN RELATION TO EACH OTHER: Such numerical alone will be called statistics that are mutually related and so comparable. Unless they have the quality of comparison they cannot be called statistics.
AFFECTED BY MULTIPLICITY OF CAUSES: Statistics are not affected by any single factor but are influenced by many factors. Had they been affected by one factor alone then by removing that factor they would lose all their significance.
NUMERICALLY EXPRESSED: Statistics are expressed in numbers. Quantitative aspects like big or small, rich or poor do not constitute statistics.

IMPORTANCE OF STATISTICS

FORMULATION OF POLICIES: It is through statistical investigations that the finance minister gets a feedback on tax paying capacity of people. Accordingly, tax rates are fixed to get maximum possible revenue with minimum possible discomfort to the people.
ECONOMIC FORECASTING: Economists do forecasting through statistical studies. On studying the behavior of price level over the years, the economists can make the statistical forecasting about the likely trend of the price level in future. Thus, it helps in future planning.
ECONOMIC EQUILIBRIUM: It is through the use of statistical methods that the economists have evolved some eco- fundamentals telling us how profits of the producers are maximized or how consumers get maximum satisfaction.
QUANTITATIVE ASPECT OF ECONOMIC PROBLEM: Consider any economic problem be it the problem of unemployment, the problem of price rise or the problem of shrinking exports. The first task of economists is to understand its magnitude through its quantitative expression.
WORKING OUT CAUSE AND EFFECT RELATIONSHIP: Economists try to find out cause and effect relationship between different sets of data. This enables them to attempt an effective diagnosis of the problem and accordingly to suggest some effective remedies.

LIMITATION OF STATISTICS

STUDY OF NUMERICAL FACTS: Statistics studies only such facts that can be expressed in numerical terms. It restricts the use of qualitative facts.
STUDY OF AGGREGATES ONLY: Statistics studies only the aggregates of quantitative facts. It does not study any particular unit.
RESULTS ARE TRUE ONLY ON AN AVERAGE: Most statistical findings are true only as averages. They express only the tendencies.
WITHOUT REFERENCE RESULTS MAY PROVE TO BE WRONG: In order to understand the conclusions precisely, it is necessary that the circumstances and conditions under which the conclusions have been drawn are also studied otherwise they may prove to be wrong.
CAN BE USED ONLY BY EXPERTS: Statistics can be used only by those persons who have special knowledge of statistical methods.

Sources Of Collecting Data

PRIMARY DATA	SECONDARY DATA
Primary data is original as they come from the source of origin.	Secondary data are already in existence, therefore, are not original.
They are always related to the specific objective.	They are always collected for some other purpose. These data need to be adjusted to suit the objective of study in hand.
They are costlier in terms of time, money and efforts involved.	They are simply collected from the published or unpublished reports. They are less expensive.

Collection Of Primary Data

The primary data can be collected by:

Direct personal investigation.
Indirect oral investigation.
Information from local sources.
Information on questionnaires and schedules by mailing method or enumerator’s method.

Collection Of Secondary Data

The secondary data can be collected by:

Published sources.
Unpublished sources.

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