Scope or Importance of Statistics: In ancient times, statistics was regarded as the science of statecraft and was used to collect information related to military force, population, wealth, etc. intelligence, scholastic aptitude, creativity, personality, interest, behaviour, attitude, etc.) …, the sides of the ofwall are 15 m, 11 m and 6 m, find the area painted in colour,entah​, i want to you because in your profile you put a photo in which there is written (trust me, love me , me)​, hi somya03 how are you are you free to chat with me​, Richmond bought seven boxes of matches. analytic skills. The importance of development economics is that it examines the factors that need to come together to bring about economic development. We wish to study the social group, composed of individuals differing from one another. Economics largely depends upon statistics. This means that 14.7, 15.0 and 15.4 would all be scored 15. In economics research, statisticalmethods are used to collect and analyze the data and test hypotheses. In the words of Connor, “Statistics is a branch of applied mathematics which specialises in data.”. It is in this respect that the average student will probably suffer most from lack of mathematical background, whether he realizes it or not. Qualitative phenomena which cannot be numerically expressed, cannot be described as statistics e.g. It has been used right from the existence of life on this earth, although the sphere of its utility was very much restricted. the magnitude of the relevant coefficients) causing false hypotheses to be … The numbers have many properties, such as identity, order and additivity. The role of statistics in business management is pivotal. Individual, single or unconnected figures are not statistics because they cannot be studied in relation to each other. Role of Statistics in Quality and Productivity Improvement by George Box. One of its side walls has been painted in some colour withmessage "KEEP THE PARK GREEN AND CLEAN" (see Fig. Originally the word ‘statistics’ was used for the collection of data concerning states both historical and descriptive. Content Filtrations 6. are available in Kautilya’s ‘Arthashastra’. It restricts to generalisation and to specifically a particular group of individuals being observed. In how many ways can she form thesegroup.a. Thus in recent times it is used in two senses, namely, singular and plural. Add your answer and earn points. 30. Failure in anticipation will mean failure of business. The amount of time and resources at disposal also determine the amount of accuracy in estimates. "From these key points, we can understand changes in the user experience and determine where issues originate so we can work to resolve them." It is with the use of comparison only that we can depict changes which may relate to time, place, frequency or any other character, and statistical devices are used for this purpose. Importance of Statistics in Economics In ancient times, statistics was regarded as the science of statecraft and was used to collect information related to military force, population, wealth, etc. 5. Statistics is very important in business and economics because it helps businesses make informed and accurate decision based on certain trends. An economic theory is a formal explanation of the relationship between economic conditions, or variables.Economic theory is a broad concept for explaining and understanding the movement of goods in a market. It helps in conducting research investigations for which sample survey or experimental approach has to be used. The word Statistics seems to have been derived from the Latin word ‘status’ or the Italian word ‘statista’ or the German word ‘statistik’ or the French word ‘statistique’ each of which means a political state. (2)Economics: Statistics play an important role in economics. Definition of Statistics. These researches provide worthy information’s regarding the nature of a specific group of individuals. 1 See answer dgupta1507 is waiting for your help. Any rough and haphazard method of collection will not be desirable for that may lead to improper and wrong conclusion. In psychology and education, quantitative methods are being increasingly used to study various phenomena, for which statistical techniques are indispensable. Disclaimer 9. All this involves a procedure and a method from the primary stage to the final stage of analysis or conclusions etc. There are so many things we wish to know which cannot be discovered by a single observation or by a single measurement. First, we develop conceptual models of behavior to predict responses to changes in policy and market conditions. Development economics looks at promoting development by increasing people’s freedom, increasing participation in the system, empowering women, eliminating hunger and poverty, and promoting education and health. Privacy Policy 8. The future trend of the market can only be expected if we make use of statistics. Business is full of uncertainties and risks. Statistics has important role in determining the existing position of per capita income, unemployment, population growth rate, housing, schooling medical facilities etc…in a country. The modern theory of Statistics has its foundations on the theory of probability which in turn is a particular branch of more advanced mathematical theory of Measures and Integration. Similarly we can ignore ten deaths in a country but we cannot ignore even a single death in a family. if one says that there are many unemployed people in India, it does not give u any idea, whereas if one says that about 26% people of India are unemployed, u get a better idea. But if we assign numerical expression, it maybe described as ‘statistics’. Statistical data are analysed in two ways which are stated below: The descriptive statistics is concerned with describing or summarising the numerical properties of data. Here the property of identity is applicable but the properties of order and additivity are not applicable. Demographics can have a profound effect on the economy. "Structural Change in Advanced Nations: A New Set of Stylised Facts," Scandinavian Journal of Economics, Wiley Blackwell, vol. The subject Statistics, as it seems, is not a new discipline but it is as old as the human society, itself. Turtle also defines statistics as “the body of principles and techniques of collecting, classifying, presenting, comparing and interpreting quantitative data.”. The vast applications of statistical data and statistical theories have given rise to a new discipline called ‘Psychometry’. In the light of above discussions the statistics has to achieve the following set of objectives in Psychology and Education as well as in general type of researches: (i) In gathering information’s of various aspects to test assumptions or test hypothesis. As a matter of fact there are millions of people all over the world who have not heard a word about statistics and yet who make a profuse use of statistical methods in their day- to-day decisions. All the important branches of Economics—consumption, production, exchange, distribution, public finance—use statistics for the purpose of comparison, presentation, interpretation, etc. In the first situation, the numbers have been assigned purely on arbitrary basis. However, we give below some selected definitions of statistics as numerical data. To learn to interpret statistical results correctly: Statistical results can be useful only to the extent that they are correctly interpreted. Fisher is the real giant in the development of the theory of Statistics.”. Statistics can usually be expressed as a percentage, a ratio, an average, a median and even a raw number. Statistics are important because today … In such inference, it is presumed that the generalisation cannot be made with certainty. But it should apply to more than those with unusual previous mathematical training. Selligman’s definition, though very short and simple, is quite comprehensive. Economic significance entails not just the statistical significance but also the economic effect inherent in the decision made after data analysis and testing. Before we can see the forest as well as the trees, order must be given to the data. They need to know statistics in order to study past trends of enrolment, to estimate teacher requirements, to plan new schools and for many other such purposes. The national economic policies and complex interactions among various sectors of the economy make it imperative for building up macroeconomic planning models. However, no one can say that the performance of the 3rd student is just the double of the 2nd student. Attempts are made to measure human ability (e.g. There cannot be one standard of uniformity for all types of enquiries and for all purposes. Francis Galton (1822-1921) pioneered the study of ‘Regression Analysis’ in Biometry; Karl Pearson (1857-1936) who founded the greatest statistical laboratory in England pioneered the study of ‘Correlation Analysis’. 4. TOS 7. For example, if your economic model predicts that lowering interest rate causes rise in inflation, you could examine trended data for both variables to see how strong the relationship is.
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