Scope, Importance and limitation of Statistics & Sampling

Presented by: Avyudaya Pratap Singh Chandan kumar Swapnil Bhongade

Application of Statistics
Statistics & Government
Statistics help in framing suitable fiscal and monitoring polices to government. Example- Statistics helps in all the govt. department such as transport, finances, defence, railways, telegraph, agriculture, etc. Transport- Number of buses require in a city planned on the basis of existing buses and number of people using public transport.

Statistics & Business

Statistical methods are used to solve many business problem. Example- Marketing researcher uses consumer buying habit to develop a new product. Production managers look quality control data to decide what adjustment should make for the manufacturing . Statistical table and charts are used by sales manager to represent a numerical facts of sales.

Application of Statistics contd..

Statistics & Economics
Statistical data and statistical methods are of immense help in the proper of understanding of economic problem and in the formulation of economic policy. Example- What to produce, How to produce and For whom to produce? These question needs lot of statistical data in the absence of which it is not possible to arrive at the correct decision. Statistical data help in understanding supply and demand of goods. Example- Gross national product, fluctuation in stock market, etc.

Statistics & science

Statistical techniques have proved extremely useful in the study of all natural sciences like astrology, biology, medicine, botany, etc. ExampleDiagnosis of disease can be done by doctor on basis of statistical data of body temperature, BP, pulse rate, etc. Botany- Study of plant growth on the basis of statistical data of temperature, soil fertility, etc.

Limitations
Statistics does not deal with individual

measurement.
It deals with the aggregate facts, the study of individual measurement lies outside the scope of statistics. Example- Wage on by an individual worker at any one time taken by itself is not a statistical datum. But the wages of workers of a factory can be used statistically. Marks of students, Height of students.

Statistics deal with quantitative characteristics.

Statistics are numerical statement of facts. Qualitative characteristics such as honesty, efficiency can not be expressed. Example- Study of intelligence of boys in a class is expressed on the basis of mark obtained in examination.

Limitations
Statisticals results are true only on an avrage.
The conclusion obtain statistically are not universally true, they are true only under certain condition.

Statistics is only one method of studying a problem.

Statistical tool do not provide the best solution under all circumstances. Hence, it is necessary that statistical conclusions should be supplemented by other evidences.

Statistics can be misused.

Statistics are like the clay, they can be molded in the manner so as to established right or wrong conclusion.

Sampling
Sampling is simply the process of learning

about the population on the basis of sample drawn from it. Process of sampling involves three elements. 1. Selecting the sample. 2. Collecting the information. 3. Making the inference about the population.

Laws of Sampling
There are two important laws on which theory of sampling is based. 1. Law of statistical Regularity. It states that a moderately large number of item chosen at random from the large group are almost sure on the average to possess the

characteristics of the large group. 2. Law of Inertia of large numbers. It states that other things being equal, large the size of sample more accurate the results are likely to be.

Methods of sampling
Sampling method Non probability 1. Judgement 2. Quota 3. Convenience Probability 1. Restricted A. Stratified B. Systamatic C. Cluster 2. Unrestricted

Methods of sampling contd..

Judgment Sampling- In this method choice of sample item depends exclusively on the judgment of investigator. Ex- If ten students each to be selected from a class of sixty for analyzing the study habits of students, investigator would select 10 students in his opinion are representative of the class. Quota Sampling- In a quota sampling, quotas are setup according to some specified characteristics such as age, income, etc.

Methods of sampling contd..

Convenience Sampling- Convenience sampling is obtained by selecting convenient population unit. It is also called as Chunk. Which refers to that fraction of the population is been investigated which is selected neither by judgment nor by probability but by convenience.

Restricted samplingStratified sampling: can be used whenever the population can be partitioned into smaller subpopulations, each of which is homogeneous according to the particular characteristic of interest. Cluster sampling: can be used whenever the population is homogeneous but can be partitioned. In many applications the partitioning is a result of physical distance. For instance, in the insurance industry, there are small"clusters" of employees in field offices scattered about the country. In such a case, a random sampling of employee work habits might not required travel to many of the"clusters" or field offices in order to get the data. Totally sampling each one of a small number of clusters chosen at random can eliminate much of the cost associated with the data requirements of management

Methods of sampling contd..

Systematic sample is formed by selecting 1 unit at random and then selecting a additional units at evenly spaced intervals until the sample has been formed. K= N/n N= Universal size, n= Sample size, K = Sampling interval Ex- 96 students with roll num from 1 to 96. It is desire to take the sample of 10 students using systematic sampling methods sampling size K= N/n K=96/10 =9.6 4,14,24,34,44,54,64,74,84,94.

Methods of sampling contd..

Unrestricted Random Sampling refers to that sampling techniques, In which each and every unit of population has an equal opportunity of being selected in the sample.