DBB2102: Quantitative Techniques for Management Manipal University Jaipur (MUJ)

BACHELOR OF BUSINESS
ADMINISTRATION
SEMESTER 3

DBB2102
QUANTITATIVE TECHNIQUES FOR
MANAGEMENT

Unit 1: Introduction to Statistics 1

DBB2102: Quantitative Techniques for Management Manipal University Jaipur (MUJ)

Unit 1
Introduction to Statistics
Table of Contents

SL Fig No / Table SAQ /

Topic Page No
No / Graph Activity
1 Introduction - -
3–4
1.1 Objectives - -

2 - 1 5–8
Statistics and Statistical Methods
3 - 2, I 9 – 11
Characteristics of Statistics

4 - 3 12 – 13
Functions of Statistics

5 - 4 14 – 15
Limitations of Statistics
6 - 5, II 15 – 17
Statistics in Business and Management
7 - - 18
Distrust of Statistics
8 Summary - - 19

9 - - 20
Glossary
10 - - 20
Terminal Questions
11 Answers - - 20 - 21

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1. INTRODUCTION

Every person will have to make decisions of one type or the other, and the more decision-
making tools they have at their disposal to help them to make good decisions, the more likely
they are to succeed in life. The modern age is the age of science which requires that every
aspect, whether it pertains to natural phenomena, politics, economics, or any other field,
should be expressed in an unambiguous and precise form. Therefore, in order to provide an
accurate and precise explanation of a phenomenon or a situation, figures are required. The
statement that prices in a country are increasing conveys only incomplete information about
the nature of the problem. However, if the figures for prices for various years are also
provided, we are in a better position to understand the nature of the problem. Additionally,
these figures can also be used to compare the extent of price changes in a country with the
changes of prices in some other countries. Using these figures, it might be possible to forecast
the possible prices so that policy measures are able to tackle the problem. The subject that
deals with such types of data analysis is known as statistics. Statistics, as a subject has been
now introduced at all levels of education in India and elsewhere. It is a branch of applied
mathematics.

Statistics simply means numerical data, and is field of math that generally deals with
collection of data, tabulation, and interpretation of numerical data.
What is the area of statistics? What does it deal with? The following conclusions are based
on the statistical data:
a) The crime rate has gone up 15% since last year.
b) The average salary of an Assistant Professor at City University is 1,25,000 per year.
c) 75% of the SMIT students come from Northern zone.

All the above statements are statistical conclusions in some form. They help in formulating
the specific policies and attitudes regarding these areas.

In this unit and subsequent units, you will learn various principles and techniques of
statistics and their application in economics, management and business, consequently a
large number of problems have been included to demonstrate the use of statistical
techniques.

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1.1 Objectives
After studying this unit, you should be able to:
❖ Define statistics and statistical methods
❖ Describe the characteristics of statistics
❖ List the functions of statistics
❖ Discuss the limitations of statistics
❖ Explain the application of statistics in business and management

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2. STATISTICS AND STATISTICAL METHODS

The term statistics is used to mean either statistical data or statistical method. Statistical data
refers to the quantitative aspects of things, and is a numerical description. Thus, the
distribution of family incomes is a quantitative description. But there are some quantities
that are not in themselves numerical, but can be made so by counting. The sex of a human
being is not a number, but by counting the number of males, we can associate a numerical
description to the sex of all human beings in a particular locality, for example, when saying
that 45% of males are employed in Sikkim. This information then comes from the realm of
statistics. Likewise, the statistics of students of a college include count of the number of
students, and separate counts of numbers of various kinds, as males and females, married
and unmarried, and so on. They may also include such measurements as their heights and
weights.

The other aspects of statistics are the technique employed in analyzing the numerical
information and using it to make wise decision. Therefore, it is a branch of scientific method,
used in dealing with those phenomena which can be described numerically, either by
measurements or counts. For example, if a preliminary test using a new vaccine shows that
in a sample of 120 cases the incidence of the disease is reduced to 10 while that in the
unvaccinated population it is 12, can we say the vaccine is effective or not? Obviously, we
can select 120 individuals in the unvaccinated population in which the incidence is 8 or even
less. Is the observed reduction due to chance causes or does it show the effect of the vaccine?
The statistical method provides theories and techniques for analyzing and interpreting the
result.

Consider the following typical situations of the decision makers which consist of
understanding the parameters of the problem, for which the statistical data is called for.

1) Manipal University of Jaipur (MUJ) experiences a steep rise in the number of persons
seeking admission. Is this rise attributed to factors that are special to SMU, or is it a
countrywide trend? The exact course of policy action will depend upon the answer to
this question.
2) At what age an air hostess should retire? Does the increasing age affect the airline
service record? How is it balanced by the increasing experience, if at all?

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3) More than 60% of Kidney-transplant patients die within a year. Is kidney- transplant
surgery beneficial?
4) Is advertising on television more cost-effective than advertising in the newspaper? Are
street corner hoardings effective at all?

Anybody would see immediately that we need data to answer all those questions. But mere
data would not help. The data will have to be symmetrically collected and analyzed so that
our answers are not affected by other factors. For example, how does one separate the effect
of age and educational qualification when one knows that educational qualification increases
with age? Also in each of these there are a whole lot of chance factors interacting with the
outcome. Therefore, we have to isolate the effect that we want to study, and these specialized
statistical methods are required.

The statistical method, when used properly, helps in understanding phenomena using
numerical evidence. Suppose we want to understand the factors that affect the yield of rice
production in India. We may note that various factors such as rainfall, soil fertility, quality of
paddy, soil nutrients used, method of cultivation, etc. are all more or less important. One can
never be sure to predict the influence of one parameter because we cannot control all of
these independently. But it is possible to design experiments and collect data so that one is
able to, more or less, isolate each effect to a predetermined level of certainty. The procedures
for the design of experiments are provided by the statistical method.

Statistics is a subject that deals with numbers and figures describing certain situations. It
summarizes the numerical data collected, in such a manner that this summary gives us a
good indication of the nature of the data. It is necessary to analyze data in a scientific manner
so that rational decisions about the data can be made. Hence the field of statistics deals with
the proper collection of the data, organizing the data into manageable and presentable form,
analyzing and interpreting the conclusions for useful purposes.
"Statistics is defined as a branch of mathematics dealing with the collection, analysis, interpretation, and
presentation of masses of numerical data”

According to the definition of statistics, the area of statistics incorporates the five elements
as follows:

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Proper collection of data

The data itself forms the foundation of statistical analysis, and hence the data must be
carefully and accurately collected and accumulated. If data is faulty, it will lead to wrong
conclusions. The data may be available from existing published sources which may already
be organized into a presentable form, or it may be collected by the investigator himself.

Organization and classification of data

The collected data must now be edited in order to correct any inconsistencies, biases,
omissions, irrelevant answers in the survey or any mistakes in the necessary computations.
After editing, the data must be classified in suitable terms according to some common
characteristics of the elements of the data. This makes it easier for presentation.

Presentation of data
The organized data can now be presented in the form of tables or diagrams. This
presentation in an orderly manner facilitates understanding as well as analysis of the data.

Analysis of data
The basic purpose of data analysis is to make it useful for certain conclusions. This analysis
may simply be critical observation of data to draw some conclusions about it or it may
involve highly complex and sophisticated mathematical techniques. Some simple statistical
tools such as averages, dispersion of data around averages, co-relation, regression etc., are
commonly used.

Interpretation of data
Interpretation means drawing conclusions from the data which form the basis of decision-
making. Correct interpretation requires a high degree of skill and experience and is
necessary in order to draw valid conclusions.

There are four types of statistical methods, below are the names along with the examples of
the same.
1 Parametric inferential methods
- t-test
- ANOVA
- MANOVA
- Z-test
- Comparison test
2 Nonparametric inferential methods
- Chi-square

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- Wilcoxon’s test
- Friedman test
- Fisher’s test
- Binomial test
3. Predictive statistical correlation methods.
- Correlation
- Pearson’s correlation
- Spearman’s correlation
- Order correlation
4. Predictive statistical regression methods
- Regression
- Linear regression
- Logistic regression
- Hierarchical regression

Self-Assessment Questions - 1
1. The sex of a human being is quantitative data. (True/False).
2. Match the following:
a) Statistics deals with i) Tables & diagrams
b) Organized data is presented in the form of ii) Numbers & figures
3. Statistics deal with the proper collection of data, organizing the data, analyzing
the results for a useful purpose. (True/False).
4. If the data is faulty, it will produce ___________________ result.

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3. CHARACTERISTICS OF STATISTICS
The character of statistical information collected from a group of individuals or objects is of
two types-quantitative and qualitative. The quantitative character is technically called
‘variable’. A variable takes different ‘values’ and these values can be measured numerically
in suitable units. Information about the ages of a group of women is quantitative because the
age is expressed in numbers, say 30 years, 34.6 years, etc.

On the other hand, the qualitative character is called ‘attribute’. An attribute cannot be
measured, but can only be classified under different heads or ‘categories’. The Religion of a
group of women is qualitative because religion cannot be stated in numerical terms; e.g.
either Hindu or Buddhist or Christian etc.

All quantitative and numerical data cannot be described as statistics. For the quantitative
and numerical data to be identified as statistics, these must possess certain identifiable
characteristics. Some of these are as follows:

Statistics are the aggregate of facts

Single or isolated facts or figures cannot be called statistics as they cannot be compared or
related to other figures within the same framework. Accordingly, it must be an aggregate of
these figures. For example, if I say I spend 15000 per month it would not be considered as
statistics. On the other hand, if I say that the average expenditure of my family is 25000 per
month, then this would be considered as statistics, since the average has been computed
from the expenditure of each member of the family.

Statistics are affected by multiple causes

The term statistical data can be used only when we cannot predict exactly the values of the
various physical quantities. It means that the numerical value of any quantity at any
particular moment is the result of the action and interaction of a number of forces, differing
among themselves and it is not possible to say how much of it is due to any one particular
cause. Therefore, there are a number of forces working together that affect the facts and
figures. It should be capable of being related to each other so that some cause-and-effect
relationship can be established. When we say that the crime rate of Delhi has increased by
12% over the last year, a number of factors have affected this change. While these factors
can be isolated by themselves, the effects of these factors cannot be isolated and measured

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individually. Similarly, a marked increase in tobacco production in India may be due to

combined effect of many factors such as better seeds, more extensive use of fertilizers,
mechanization of cultivation, better institutional framework and governmental support,
adequate rainfall, etc. It is generally not possible to segregate and study the effect of each of
these factors individually.

Statistics are expressed numerically

Statistics are expressed in numbers. Qualitative statements do not show accurate
interpretations and hence cannot be called statistics. For example, statements like,
“Bangladesh is a poor country” would not be considered statistical statements. On the other
hand, comparing the per capita income of India with China would be called statistics.

Statistics are collected in a systematic manner for a predetermined purpose

Quantitative data can be called statistics only if they have been compiled in a properly
planned manner and for a purpose about which the enumerator had a definite idea. The
decision maker should have the clear idea about the object for which the facts are to be
collected. Again, the procedure of data collection should be well planned and in the organized
manner, i.e., it must be decided beforehand as to what kind of information is to be collected
and the method that is to be applied in obtaining it. This involves decisions on matters like
‘statistical units’, ’standard of accuracy’,’ list of questions’, etc. Facts collected in an
unsymmetrical manner and without complete information about the object, will be
confusing and cannot be made on the basis of valid conclusions.

Statistical data must be according to reasonable standards of accuracy

The accurate statistical data will be generated by counting the actual number in the data,
such as number of patients in the hospital. The data must be reasonably accurate. This is
necessary because statistical data are to serve as a basis for statistical investigations. If the
basis happens to be incorrect the results are bound to be misleading. It must, however, be
clearly stated that it is not ‘mathematical accuracy, but only reasonably accuracy’ that is
necessary in statistical work. But the accuracy or exactness cannot be guaranteed. No
estimates or forecasts or statistical decisions can be taken to be exact. They are all subject to
certain amount of inaccuracy whose limits may be stated in terms of probability. Almost in
all the cases, estimates and conclusions are arrived at on the basis of samples, and so it
cannot be expected that they will lead to exact results.

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Statistics should be placed in relation to each other

Numerical facts may be placed in relation to each other either in point of time, space or
condition. The statement ‘placed in relation to each other’ means that the facts should be
comparable. Facts are comparable in point of time when we have measurements of the
similar object, obtained in an identical manner, for different periods. They are said to be
related in point of space or condition when we have the measurements of the same
phenomenon at different locations or in different conditions, but at the same time.

Activity 1
Classify each of the following characters as either an attribute or a variable: Mother
tongue of a student, Division obtained by a student at the Higher Secondary
Examination.

[Hint: attribute cannot be measured in numerical value]

Self-Assessment Questions - 2
5. Match the following:
a) Religion i) Quantitative data
b) Height of students ii) Qualitative data
c) Unsymmetrical data iii) Wrong data
6. The quantitative characters are technically called ____________________.
7. The qualitative character is called ____________________.
8. Single or isolated facts can be called as statistics. (True/False)
9. Statistics are expressed in numbers. (True/False)

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4. FUNCTIONS OF STATISTICS
Statistics has been applied to most of the branches of science, engineering, and management.
One of the reasons of its phenomenal growth is the variety of different functions attributed
to it. Some of the most important functions are as follows:

To represent facts in the form of numerical data

The first function of statistics is to present a given problem in terms of numerical figures. We
know that the numerical presentation helps in having a better understanding of the nature
of problem. Facts expressed in qualitative terms are not very useful because they are often
vague and are likely to be understood differently by different people. Quantitative data is
easy to understand and precise. This can be clearly illustrated by an example. If we are given
the marks in English of each individual student of a class and if it is desired to judge the
performance of the class on the basis of these data it will not be an easy matter. Human mind
has its limitations and cannot easily grasp a multitude of figures. But if the students are
classified i.e, if we put into one group all those boys who get more than first division marks,
in still another group those who get second division marks, and have a separate group of
those who get third division marks, it will be easier for us to form a more precise idea about
the performance of the class.

To condense and summarize a mass of data

Generally, the problem to be investigated is represented by a large mass of numerical figures
which are very difficult to understand and remember. Using various statistical methods, this
large mass of data can be reduced to totals, averages, percentages, etc., and presented either
graphically or diagrammatically. These devices help us to understand quickly the significant
characteristics of the numerical data and consequently save us from a lot mental strain.
Single figures in the form of averages and percentages can be grasped more easily than a
mass of statistical data comprising thousands of facts. For example, the average salary of a
teacher is derived from a mass of data and surveys. But just one summarized figure gives
readers a pretty good idea about the income of a teacher.

To facilitate comparison of data

Many times, the purpose of undertaking a statistical analysis is to compare various
phenomena by computing one or more measures like mean, variance, ratios, percentages
and various types of coefficients because the absolute figures do not convey any significant

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meaning. But their comparison helps us to draw the conclusion. For example, we estimate
the national income of India not essentially for the value of that fact itself, but mainly in order
that we may compare the income of today with that of the past and thus draw conclusions as
to whether the standard of living of the people is on the increase, decrease or is stationary.
Statistics applies suitable method for comparison.

To formulate and test hypothesis for the purpose of co-relation

A hypothesis is a statement about some characteristics of a population. For example, the
statement that average height of male of a college is 70 inches is a hypothesis. Here students
of the college constitute the population. It is possible to test the validity of this statement by
the use of statistical techniques.

To forecast future trend

The success of planning by the Government or of an organization depends to a large extent
upon the accuracy of their forecasts. Statistical method provides a scientific basis for making
such forecasts. Various techniques used for forecasting are time series analysis, regression
analysis, etc.

To formulate policies
Statistical analysis of the data is the starting point in the formulation of policies in various
economic, business and government activities. The management can revise their policies and
plans based on the forecast of future trends, events or demand.

Self-Assessment Questions - 3
10. Statistics represent the facts in the form of numerical data. (True/False)
11. Statistics helps us to co-relate two or more variables. (True/False)
12. Statistical methods provide a scientific basis for forecasting
__________________________.
13. Statistical analysis of the data formulate the Govt. policies in the various sector
like economics, business etc. (True/False)

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5. LIMITATIONS OF STATISTICS
The statistical methods, though, widely used in different areas of human knowledge, has its
own limitations as far as its application is concerned. Some of these important limitations
are as follows:

Statistics does not deal with individual values

Statistical studies are undertaken to study the characteristics of a group rather than
individuals. It only deals with the aggregate values. For example, the salary of a faculty
member in itself is not statistical in nature unless the salaries of other faculty members are
also known.

Statistics do not deal with qualitative characteristics

Statistics only deal with the quantitative facts. These facts are capable of being represented
in the form of numerical figures and therefore, are also known as numerical facts. These facts
can be analyzed and interpreted with the help of statistical methods. This cannot be used to
study such events which cannot be expressed numerically. For example, intelligence of a
person may be compared to some degree by comparing Iqs or scores in certain tests.
However, certain qualitative characteristics such as honesty, integrity cannot be measured
statistically.

Statistical conclusions are not usually true

Since statistics is not an exact science, hence these conclusions are true only certain
conditions. Most of the statistical studies are based on a sample taken from the population.
Under certain circumstances the estimated data are also used. Hence, the conclusions about
a population based on such information are bound to be true only approximately. Therefore,
statistical methods, if not applied in the proper perspective of the collected data, may lead to
false conclusions. They should therefore be handled with utmost care and by experts only.

Statistical interpretation requires a high degree of skill

In order to get meaningful results with the proper collection of data, it requires extensive
training to read statistics in its proper context.

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Self-Assessment Questions - 4
14. Match the following:
a) Statistics does not deals with i) Individual values
b) Statistical interpretation requires ii) High level expertise
15. Statistics only deal with the aggregate values. (True/False)
16. Statistical conclusions are not usually true. (True/False)

6. STATISTICS IN BUSINESS AND MANAGEMENT

With the gradual industrialization and consequent expansion of trade, businessmen can no
longer rely on the old system or leave their future on chances. They have now to proceed on
scientific principles, prepare themselves for competitive markets and plan their business
accordingly. Statistics influences the operations of business and management in many ways.
Statistical applications include the areas of production, planning, marketing, financing,
accounting, research & development, decision making etc. As the complexity of the
organization increases in the competitive market, it has become necessary for executives to
base their decisions on the elaborate information systems and analysis, instead of intuitive
judgment, and statistics are used to analyze the vast data base for information. Statistics have
been extensively used in the following areas:

Entrepreneurs
It is necessary to study the market before start a new business. To ensure the success of a
new venture, a businessman has to collect the past records and current market trends
scientifically. Statistics will help to analyze the data and predict the future course of action.
A number of new enterprises have failed either due to unreliability of data or due to faulty
prediction and conclusions.

Production
After a new business is launched, the business head has to plan its production so that he is
able to meet the demand of its product and incur minimum losses on account of over or
under production. For this he has to estimate the pattern of demand of the product by

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conducting various market surveys. Based upon these surveys, he might also forecast the
demand of the product at various points of time in future using statistical techniques.

Marketing
An optimum marketing strategy would require a skilful analysis of data on population, shifts
in population, disposable income, competition, status of the people, advertising, quality of
the sales people, and other related matters. These variables and their inter-relationship must
be statistically studied and analyzed.

Purchasing
The purchasing department of an organization makes decision regarding the purchase of
raw materials and other supplies from different suppliers. The statistical data on cost of the
component, product delivery time etc. would assist in formulating purchasing policies as to
where to buy, when to buy and how much to buy.

Investment
Statistics have been almost indispensable in making a sound investment whether it be in
buying or selling of stocks and securities or real estate. The financial newspapers are full of
tables and graphs analyzing the prices of stocks and their movements. The financial
newspapers are full of tables and graphs analyzing the prices of stocks and their movements.
Based upon these statistical data, a good investor will buy when prices are at lowest and sell
when prices are at the highest.

Quality control
Statistics are used in quality control so extensively that even the phenomenon is known as
“statistical quality control (SQC)”. Statistical quality control consists of using statistical
methods to collect and analyze data in the determination and control of quality. The
techniques primarily deals with the samples, taken randomly and as representative of the
entire lot size or population, then these samples are analyzed and inferences made
concerning the characteristics of the lots from which they are drawn. The analysis of the
quality control is done with the help of control charts. A control chart shows two limits, the
lower control limit and the upper control limit for the variation in the quality of the product.
The samples of output, being produced, are taken at regular intervals and their quality is
measured. If the quality falls outside the control limits, steps are taken to rectify the
production process.

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Personnel
Study of statistical data regarding wage rates, employment trends, accident rates, employee
grievances, labor turnover rate etc., and the proper analysis of such data assists the
personnel departments in formulating the personnel policies and in the process of
manpower planning.

Activity 2
A quality control engineer inspects 50 machining components. He finds that 45 of them
meet the designed specification. The remaining components do not satisfy the
customer requirement. At this point, he has to decide his next plan of action. What will
be the appropriate action of the quality control engineer?

[Hint: Refer 1.6, quality control]

Self-Assessment Questions - 5
17. The demand of the product must be accurately forecast using _________________
approach.
18. Study of the ______________ assists the personnel departments in formulating the
personnel policies and in the process of manpower planning.
19. Make or buy decision is based on the _____________________.

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7. DISTRUST OF STATISTICS
In spite of its valuable service that statistics renders to business community and scientists,
both social and natural, there is some amount of misgiving in the minds of few people with
regard to its reliability. The use of statistics by such ignorant people is likely to give a
misleading interpretation of a given problem. For a common man, the causes of distrust are
following:

Statistics is a difficult subject

A common man is normally not aware of the subject of statistics. It is a highly technical
subject. Therefore, it is very difficult to be used by everybody. When an inexperienced person
use statistics, they are very likely to get misleading conclusions. Thus a common man does
not have any faith on the results obtained by statistical analysis.

Statistics has its limitations

While working with statistical data, limitations of statistics should be kept in mind.
Otherwise, statistical result will produce misleading information.

Different results are obtained by different people

If the similar problem is analyzed by two different persons by collecting their own data, it is
very likely that their results would be different. For example, if two persons are appointed
to estimate, separately, the average weight of students of a school, they are very likely to get
different estimates. This is a very widespread cause of distrust of statistics for a common
man.

Analysis of data without any reference to a specific problem

If the collection, analysis and predictions are done without taking any reference to a specific
problem, the results are likely to be fallacious. Therefore, it is very necessary to specify,
beforehand, the problem to be investigated and the process of collection of data and its
analysis must always be done with reference to the very problem.

The above discussion on various issues of statistics indicate that statistics is not a cause of
distrust but the persons who misuse it either deliberately or due to ignorance are really
responsible for this distrust among the common people. Thus, in order to restore confidence
in statistics and its results, one should make sure that causes mentioned above are taken
care of.

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8. SUMMARY
Let’s recapitulate the important aspects of the unit:
• In this unit, at the first stage, we studied about the background of statistics, a branch of
applied mathematics which deals with the collection and analysis of numerical data.
According to the definition of statistics, we learnt that the area of statistics includes
proper collection of data, organization and classification of data, presentation of data,
analysis of data and interpretation of the result.
• In the second stage, we discussed the characteristics of statistics and differentiate
qualitative and quantitative factors. Some of the characteristics like quantitative nature,
collection of facts, influence of multiplicity of causes etc have been discussed in this topic.
• In the third stage, we learnt the use of various statistical methods that helps in
presenting complex mass of data in a simplified form so as to facilitate the process of
comparison of characteristics in two or more situations. Statistical methods are
applicable only if data can be expressed in terms of numerical figures. The result of
analysis is applicable to groups of individuals or units and is true only on average, etc.
• In the fourth stage, we explained the limitations of statistics like its ignorance of
individual values, qualitative characteristics etc. Therefore, these limitations should be
kept in mind.
• In the fifth stage, the application of statistics has been discussed in production, planning,
quality control etc. The projection of statistics indicates that it is an indispensable tool
for the Government to ensure efficient running of its administration in addition to
fulfillment of welfare objectives. It is not possible to think of planning in the absence of
statistics. The importance of statistics is also increasing in the competitive business
world. Every business, whether big or small, uses statistics for analyzing various
business problems, including the feasibility of launching a new business.
• Finally, the causes of distrust have been discussed and it can be avoided by remaining
careful about its limitations and its possible misuses.

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9. GLOSSARY
Aggregate of facts: Collection of facts
Qualitative statements: These statements are subjective statements made by the experts.
Statistics: A branch of applied mathematics which deals with the collection and analysis of
numerical data.
Variable: Quantitative character of an individual or item whose value can always be
measured.
Attribute: Qualitative character

10. TERMINAL QUESTIONS

1. Define Statistics.
2. Discuss the function of the statistics.
3. List the limitations of the statistics.
4. What is the importance of statistics in business and management? Explain in brief.

11. ANSWERS
Self-Assessment Questions
1. False
2. a-ii, b-i
3. True
4. Wrong
5. a-ii, b-I, c-iii
6. Variables
7. Attributes
8. False
9. True
10. False
11. True
12. Future trends
13. True
14. a-i, b-ii

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15. True
16. True
17. Statistical
18. Statistical data
19. Statistical data

Terminal Questions
1. Refer to 2 – Statistics is a subject which deals with the numerical facts of any
organization that should be capable of being arranged in relation to each other.
2. Refer to 4 – One of the reasons of its phenomenal growth is the variety of different
functions attributed to it. Some of the functions are as follows: etc.
3. Refer to 5 – Some of these important limitations are as follows: Statistics does not deal
with individual values etc.
4. Refer to 6 – Statistics influences the operations of business and management in many
ways. Statistical applications include the areas of production, planning, marketing,
financing, accounting, research & development, decision making etc.

References:
• Bharadwaj R. Business statistics. (2001). Excel books: New Delhi.
• Chandan, Jagjit, Khanna, Business statistics. (2003). Vikash Publishing House.
• Das N. Statistical methods (Vol I). (2009). The McGraw Hill Companies: New Delhi.
• Gupta, Vijay Gupta, An Introduction to statistical methods. (2004). Vikash Publishing
House: New Delhi.
• Richard Levin, David Rubin, Statistics for management. (2007). Eastern Economy
Edition: New Delhi.
• https://library.uhv.edu/statistics#:~:text=Statistics%20is%20a%20branch%20of,of
%20masses%20of%20numerical%20data.

Unit 1: Introduction to Statistics 21