Statistics

Definition
• Statistics derived from the Latin word
’status’ . It deals with the collection,
analysis, and interpretation of numerical
data.
• Data- A set of numerical figures which are
obtained by counting, or measurement.
• Data came from the word Datumn.
• Statistics is the collection, classification,
presentation , analysis , comparison and
meaningful representation of raw data.
• Statistical data help us to understand the
economic problems i.e balance of
trade,disparities of income and wealth ,
national income accounts, supply and
demand curves, production,consumption.It
also helps in planning and forecasting.
• The success of modern business firms
depend on the proper analysis of statistical
data. For example before starting the
business or expansion of existing business
the person must analyse all facts like raw
material prices, consumer preferences, sales
records , demand of products, labour
condition, taxes etc statistically. Thus
statistics helps to determine the location and
size of the business and introduce of new
products.
 Limitation of statistics
• Statistics studies a group but not an
individual.
• Statistics decisions are true on an average
only. for better result a large number of
observations are required.
• Statistical data must be analysed by
statistics experts otherwise the results
may be misleading.
 Phases of statistics
• A statistical enquiry has four phases
• (A) Collection of data
• (B) Classification and tabulation of data
• © Analysis of data
• (D) Interpretation of data
 Collection of data
• Data means information. Data collected
expressly for a specific purpose are called
primary data . For example data collected
by a particular person or organization from
the primary source for his own use,
collection of data about the population by
census and surveys.
• Data collected and published by one
organization and subsequently used by
another organization are called secondary
data. The various sources of collection of
secondary data are newspapers and
periodicals, publication of trade
organization , research papers published
by university department, official
publication of central and state Govt.
• The collection expenses of primary data
are more than secondary data.
• The various methods of collection of
primary data are
• (i) Direct personal
investigation(interview/observation)
• (ii) Indirect oral investigation
• (iii) Data from local agents/correspondents
• (iv) questionnaires to be filed by
enumerators
• (v) Result of experiments
• Data collected in this manner is called raw
data. These are generally voluminous and
have to be arranged properly before use.
 Classification of data
• The process of arranging things in groups
or classes according to their resemblances
and affinities and gives expression to the
unity of attributes is called classification of
data. Classification condenses the data by
dropping out unnecessary details. It
facilitates comparison between different
sets of data clearly showing the different
points of agreement and disagreement.
• Classification of data enables us to study
the relationship between several
characteristics and make further statistical
treatment like tabulation.
• For example during population census in
the country people are classified according
as age group,sex(Male/female),
profession(agriculture,teacher,doctor,Clerk,
Auditors)Place of residence(urban/rural)
• Marital status, states( Karnataka , Kerala ,
Delhi,UP,Bihar) etc
• Modes of classification- There are four types
of classification(1) Qualitative(2)
quantitative(3) Temporal(4) Spiral
• Qualitative classification- It is done
according to attributes or nonmeasurable
characteristics like social status,
sex,occupation, nationality
• When only one attribute is used for
classification it is called simple
classification. For example Age is used for
classification for population
• When more than one attributes are used
for classification it is called manifold
classification. For example Religion, Age ,
Location are used for classification for
population.
 Quantitative classification
• It is done according to numerical size like
weights in kgs or heights in cms. In this
classification we classify the data by
assigning arbitrary limits known as class
limits. The quantitative phenomenon under
study is called a variable. For example
The population of the whole country may
be classified according to different
variables like age, income, wage etc.
• This classification is also known as
classification by variables.
• Variable-In statistics any measurable
characteristic or quantity which can
assume a range of numerical values within
certain limits is called a variable.Eg-
Income, height, age, weight,wage etc.
•
• A variable can be classified into two parts
named as Discrete variable and
Continuous variable.
• Discrete variable- A variable which can
take up only exact values and not any
fractional values is called a discrete
variable.Eg:No of workers in a factory,
Members of a family, Students in a
class,no of births in a year
• Continuous variable- A variable which can
take up any numerical value (Integral
/Fractional) within a certain range is called
a continuous variable. Eg: Height, Rainfall,
weight, Time, Temperature etc
• In quantitative classification we classify
theData by assigning arbitrary limits called
class limits. The group between any two
classlimits is termed as class/class interval
 The primary rules of
classification are as follows
• (i) All the classes should preferably have
equal length
• (ii) The class limits should be selected in
such a way that no value of the items in the
raw data coincides with the value of the
limit.
• (iii) The class should be exhaustive i.e each
value of the raw data should be included in
them.
• (iv) The classes should be mutually
exclusive and non overlapping i.e each item
of the raw data should fit only in one class.
• (v) The classification must be suitable for
the object of enquiry.
• (vi)The classification should be flexible and
items included in each class must be
homogeneous.
• Temporal classification- It is done
according to time for example index
number arranged over a period of time,
Population of a country for several
decades, experts and imports of India for
different five year plans.
• Spatial classification- It is done with
respect to space or places for example
production of cerals inquintals in various
• States, Population of a country according
to states
• Numerical data- The data which have a
measurement expressed in terms of
numbers is called numerical data. For
example a person’s height, weight,Blood
pressure. Numerical data is divided into
two types Discrete and continuous
• Discrete data- This represent items that
can be counted or possible values which
can be listed out. For example the number
of heads in 100coin flips takes on values
from 0 to 100.
• Continuous data- It represents
measurements their possible values can
not be counted and can only be described
using intervals on the real number line.
• For example the exact amount of gas
purchased at the pump for cars with 20
gallon tanks would be continuous data
from 0 gallons to 20 gallons represented
by the interval(0,20) Another example the
lifetime of a battery can be anywhere from
0 hrs to any infinite number of hrs. It
means no one can put a value how long it
go.