Chapter 1 cmemannnrerenreneenennneres 1.1 Meaning of Statistics Today we live in the age of science and technology and have witnessed new developments and progress in all walks of life. With updated inventions and researches in science, new machines, applications, systems and sources of energies have been developed for our comforts. Scientific methods have been used in all such developments. On the other hand, proper and objective decision making play an important role in activities related with industry, agriculture, business and economy. The huge sizes and complexities in business organisations make it necessary that applied scientific methods be used in decision making processes too. In this regard, the most commonly known applied scientific method is quantitative or statistical analysis. The methodologies for statistical analysis have been developed to study natural, social, political or economic phenomenon ina systematic and scientific manner. These methodologies depend on empirical study of things and therefore, are based on experience or empirical investigations. An empirical investigation consist of collecting information through observations and analysing the information for drawing conclusions. Even a common man is used to such empirical investigations. For example, based on impression from the newspaper reports of theft and robbery, he might conclude that the cases of theft and robbery are on the increase or decrease these days; the daily experience of a shopkeeper about the demand of certain item or brand may help him to decide to stock the item in larger quantities. Sometimes we pass judgement on observations and say that they are in the normal range or tunusually high or low, a given day's temperature is above normal. We use phrases like average student in a class, the range of marks in a given subject. In all this, we make use of empirical investigations, even though they may be in a very crude form, “Thus, in an empirical investigation facts are recorded through observations. When the information or observations are recorded in quantity, we have quantified the information. For instance, weights, heights, age, number of accidents, production, sales ete. are phenomena which are measurable in quantity along with a scale. These quantified or quantitative measurements are necessary for [ecisions of a statement in an empirical investigation. The systematic and scientific treatment of quantitative measurements is precisely known as statistics. The term statistics covers all fields of study wherein quantitative measurements of observations is possible and need analysis. 1.2 Definition of Statistics There have been many definitions of the term ‘Stat senses : ics' which can be broadly classified in two 1, Statistics in plural sense and 2. Statistics in singular senseStatistics HVA SCRICHE studies: cand quanitative information, Thus, in abou statsties, vital statistics andl 89 0 When we think of i arn However, ison be noted tha all ania re satisfying, certain conditions are called definition due to Horace Seerist ranked extent by multiplicity of causes, re standarrs of accuracy, collected Statistics in Plural Sense i enoting nunterical ¢ plural noun, statistic the same port tl he wold in the sense Quantitative observation red in the following, vcted 0 ding to rea. sonal ed in relation (0 each other should satisfy the following export and it weused nig are not stat which have been highligh! Fes we mean aeraeares of facts ae od, enumerated oF ¢ sstimated accord oa predetermined purpose ard pa cs, the quantitative expressions aunt fi nition of stat iz According to this defi conditions = i) Statistics are a called statistics as su "Ajay’s marks in economics 35, 40, 70, 35, 65, 39, 50, 47, 86 form statistics. Gi) Statistics are al «Single and isolated mumerical expressions are nox ons orin relation to others, For example, rMiarks of ten students in economies are soa set or an aggregate of observations ggregates of facts d eh facts can not be putin comparis ‘are 70" is not statistics. But” and 25" are statistics flected to a marked extent by multiplicity of causes : Statistics or data ave affected by amuraber of forces operating together i. hey are dependent on a number of phenomena, For example, statistics of production of an agricultural commodity are affected by rainfall, soil quality, manuring process and method of cultivation, etc. The same is true for statistics of imports, exports, sales, production, profits, cte. istics unless (iii) Statistics are numerically expressed = Qualitative expressions are not statis ical forms. As for instance, the statements’ students of a particular they are expressed in numeri class are good in physics'is not a statistical statement. Similarly, the statements like ‘the exports in the country are on the increase’ and ‘the birth-rate in India is decreasing’ are not statistical statements. However, the statement '30 students out of 120 have failed’ is a statistical statement. (iv) Statistics are enumerated or estimated according to reasonable standards of accuracy : Enumeration means a precise and accurate numerical statement. Such numerical facts about any phenomenon can be obtained in two ways, viz., by actual counting and measurement or by estimate. In a situation when the area of statistical enquiry is large, accurate enumeration is either not possible or difficult to make. In such cases, expert make use of the estimates with specified degree of accuracy. For example, the number of students in a class can be counted with perfect accuracy while counting the number of persons attending a political rally may be a di-ficult task, In the latter case, one has to use the estimation procedure to make statement like ‘ten thousand people attended the rally’. Here, the statement does not mean exactly ten thousand but it may be few hundred less or more. Similarly, exact measurements on heights, weights, distances, etc. are not possible and one has to make use of estimates with reasonable standard of accuracy. (v) Statistics are collected in a systematic order : Statistics should be collected with suitable plan of data collection, Statistics collected without any order and systems are likely to result in fallacious conclusions. (vi) Statistics are collected for a predetermined purpose : The statistics should be col be fora specific and well defined purpose. For instance, while collecting statistics ol agricultural production, we must decide beforehand the regions, commodities and the period: for which they are needed.Statistics : An Introduction (vii) Statistics are placed comparisons betw relation to each other population feores of ene phenomena over a specific region or period. For example, the Peeceeticcmee: india, U.K., U.S.A., China, etc. in 2001 census are comparable as they relation to each other Iva year Rap fora valid comparison, statistics are required to be put in + It would be meaningless to compa i it of human beings. al pare the weight of elephants with those Statistics are collected for making In the absence of the above conditions, numerical expressions of fact can not be treated as ‘statistics’. Therefo ° ’, = y efore, one can say “all statistics are numerical statements of facts but all numerical statements of facts are not statistics" 1.2.2 Statistics in Singular Sense Whenever a huge amount of numerical data are collected, there arise a need to organise, present, analyse and interpret them in a systematic order. Statistics, in a singular sense, is a branch of science which deals with scientific methods of collection, organisation, presentation analysis, and interpretation of data obtained by conducting a survey or an experimental study. According to Croxton and Cowden, “Statistics may be defined as a science of collection, presentation analysis, and interpretation of numerical data’, Thus, according to the present definition of statistics, we have the following five stages in a statistical investigation = @ Collection of data : Collection of data with a specific and well defined purpose is the first step ina statistical investigation, If collected data are faulty, the conclusions drawn are bound to be fallacious. Therefore, data should be collected with maximum care as they forin the foundation of statistical analysis. (i) Organisation of data : It is usually not possible to derive any conclusion about the main features of data only from direct inspection of the observations. The second purpose of statistics is to provide a methodology for classification and describing the properties of data in a summary form. Editing, classification and tabulation are the three steps in the ogranisation of data. (ii) Presentation of data : Collected and organised data are presented in some systematic order to facilitate statistical analysis. The organised data are presented with the help of tables, graphs and diagrams which have a greater memorising effect and facilitate comparison. (iv) Analysis of data : The next stage is the analysis of presented data. Statistics plays two important roles in the analysis of data - (i) descriptive statistics (ji) inferential statistics. The descriptive statistics is concerned wi describing or summarising the numerical properties of data. The methodology of descriptive statistics includes classification, tabulation, graphical presentation and calculation of certain indicators of data such as mean, standard deviation, range, etc. which summarise certain important features of data. On the other hand, ferential statisties, also referred to as statistical inference, is concerned with derivation of scientific inference about generalisation of results from the study of a few particular cases. Technically speaking, the methods of inferential statistics helps in generalising the results of a sample to the entire population from which the sample is drawn.,The nature of inference is inductive in the sense that we make general statements from the study of a few cases. In such inference, it is presumed that the generalisation cannot be made with certainty. Someeran of probability is often used in stating the languas and therefore rable inevit 5 ine ¢ last stage ina valid conchusions is rawins valid conclust i ee ysed data is @ dificult task and requires jon of data + jon of ana (wy Inter ' ; ence: . 3 sxll and exPET 5 of Definitions as Method jstinction 1.3 Distin Statistics Ic is singular. It is plural. P tical method. a Irrefers to a sense of data Inrefers to any stat It may be of primary OF secondary nature. Iris of scientific nature. Itis in the form of tools applied for processing the materials. Iris in the form of raw materials. Definition of Statistics ¢ definition of statistics. According to modern approach in the face of uncertainty. A few such 1.4 Modern Approach in the presently anew approach is developing in th statistis is assumed to be science of taking suitable decision, definitions of statistics are given below : 1, Neter and Wasserman : “Statistics refers to the body of technique or methodology which has been developed for the collection, presentation and analysis of quantitative data and for the use of such data in decision making”. 2. Mood, Graybill and Boes : “Statistics provi of uncertainty prevail”. 3. Kenney and Keeping : “Statistics is usually meant the science and art concerning collection, presentation and analysis of quantitative data so that intelligent judgement may be formed des tools for making decisions when conditions ‘upon them”, 4, Wallis and Roberts : “Statistics isa body of methods for making wise decisions in the face of uncertainty”. After going through the above definitions of statistics, the following points may be highlighted : (a) By statistics we mean collection presentation and analysi i : ; : lysis of quantitative data. capacity to take decision in the face of uncertainty. dara. Irhes he (b) Statistics is science and art which deals wit i Sati se leals with collection of data, presentation and analysis (c)_ Statistics provides necessary tools for taking decisions in uncertainty. (a) Stati Wwides methods for taking i sie O15 isties pro fides sthods for taking intelligent judgement in case of uncertainty. Thus, in all the definitions of statistics discussed above en single in at above emphasis is given on a single poi ingle point that statistics is a set of different methods and principles whose purpose is to tal itable and intelliget pri eis to take suit decisions in face of uncertainty, Hence, b . Hence, by usin ist correct and accurate decisions. Y using modern statistical methods, itis possible to takeStatistics : An Introduction 5 1.5 Nature of Sta Statistics is a science or an science or an art or both, tics (Whether Statistics is a Science or an Art) artis often a subject of debate. tn a n order to know whether statistics; is necessary to understand the meaning of science and art. 1.5.1 Statistics as a Science ly of knowledge, It studies ¢ he form of scientific and avoids vague judgements as good or bad. Li ‘ause and effect relationship and Drinciples of laws. It describes objectively J 1 ike other sciences, statistical methods are also used to answer the questions like, how an investigation should be conducted ? In whar way the valid and reliable conclusions can be drawn ? How far these conclusions are dependable ? Hence, statistics isa science. The science of statistics is different from Physics, Chemistry ete. Statistics is called the science of scientific methods, That is why some statisticians do not consider it a pure science but a scientific method. In the words of Croxton and Cowden, “Statistics is not a science , itisa scientific method". According to Tippet, “As science, the statistical method is a part of the general scientific method and is based on the same fundamental ideas and processes”. 1.5.2 Statistics as an Art An artis an applied knowledge. It refers to the skill of handling facts so as to achieve a given objective. It is concerned with ways and means of presenting and handling data, making inferences logically and drawing relevant conclusions, Statistics is an art. Art aspect of statistics tells, how to use statistical rules and principles to study the problems and finding their solutions. By the application of statistical methods a number of complex problems can be understood easily. Collection of statistics (Gata), its use and utility are itself an art. How the desired results are obtained by using the rules of statistics, which statistical methods are used to solve special type of problems ? How the two facts are compared and by establishing correlation conclusions are drawn ? All these aspects actually relate to art and that is why statistics is called an art. 1.5.3 Statistics is both Science and Art After studying science and art aspects of statistics itis said that statistics is both science as well as art, Statistics is used not only to gain knowledge but also to understand the facts and draw important conelusions from it. This type of conclusions prepare a path of the economic an social progress, According to Tippet, “It (Statistics) is both a science and an art. iis a science in that its methods are basically systematic and have general application and an art in that their successfl application depends to a considerable degree on the skill and special experience of the statistician and his knowledge of the field of application, e.g-, Economics". . 1.6 Functions of Statistics 1. Itsimplifies complex data : Statistical methods like averages, totals, percentages, ete, help 5 of data into a few significant Agures so as to make them easily in condensing 1 understandable. , ; a 2. It presents the facts in a a finite form : Statistics deals with the quantitative statements of fats and thus presents them in a precise wn define form, Quantitative statements of facts are always more convincing than vague statements, For example, the statements like ‘the birthseatisties in Management Studies jas are rising’, Mr. Yogesh has passed the ces of commode unite form as they do not Ta im nda fs decreasing’ the DHS OE Te tmacion in a wolve quantitative stacemenis O° H vison of quantitative facts §s also an ive des a cechnique of comparison t Comparison ee see Ton ef dete Concerned with impart, exports, WAS, PoC apiihed Inv such as Malehusian ‘Nery Rend indi blk 1 rh lysis of activities a oe eet sueveye are indispensable tools in formulating precise and definite production policies, en supply and demand, = Scope of Statistics The scope of statistics is Indeed very vast. It covers all fields of study wherein quantitative data waeeat and need analysis, Statistics is an indispensable tool for any scientific enquiry-right from the Zane of planning to the stage of conclusions. Ir applies to almost all sciences : pure and applied. Dhysical natural, medical, agricultural and engineering. (t also finds applications in some fields, Felated to, economics, business, commerce, industry ete. Le : . Sindustry ete, Let us examine the importance of statisti in some areas in which it is applied. Po 7 - > Statistics and State economic and military strength and policic f Initially statistics was developed as state craft. The ruling kings used statistics for assessing thelr import, sales, production, heath ete. Now, with the newly emergingStatistics : An Introduction 7 concept of welfare state, the functions of a state have increased. Statistical data and methods are of immense help in promoting human welfare as these help almost all government departments in suitable policy formation. For example, increasing trends in population will have its impact on food, housing, transportation, health facilities, education, and so on and the concerned government ministries will have to formulate suitable policies in order to meet the increasing impact of population on these services. = Statistics and Economics Statistics as ‘data’ and 'methodology' have proved immensely useful in solving a variety of economic problems related to wages, prices, analysis of time series, income and demand analysis. The development of various economic theories own greatly to statistical methods. 'Engel's law of family expenditure’ and ‘Mathusian theory of population’ have been formulated with statistical analysis of the related data. The impact of mathematics and statistics has led to the development of new discipline like 'Econometrices' and 'Economie Statistics’. = Statistics and Economic Planning Statistics is the most important tool in economic planning which is essential for making proper utilisation of natural resources, both human and natural, Success at every stage of planning, viz. drawing a plan, execution and review is based on statistical analysis. Priorities of expenditure of a national budget can be determined through the proper understanding of various economic problems, viz, balance of trade, industrial growth, disparities in income and wealth, agricultural production etc. Time-bound goals are set after listing the priorities of growth in different economic activities. Maximum utilization of available resources ean be made by using econometric models based on statistical analysis. ‘The evaluation of progress made is also important in planning. Statistical methods help in developing such evaluation procedures both at the state and national level. ® Statistics and Business ‘With the growing size and increasing competition, the problems of business enterprises have become complex. Statistics is now considered an indispensable tool in the analysis of activities in the field of business, commerce and industry. In business, the manufacturer is always interested to estimate the immediate and future demand of his product. The object can be achieved by properly conducted market survey and research which greatly depend on statistical methods, The trends in sales and production can be determined by statistical methods like time series analysis which are essential for future planning of these phenomena. Similarly, the correlation and regression analysis ean be used to judge the effectiveness of various sales promotion measures. Statistical concepts and methods are also used in controlling the quality of products to the satisfaction of consumer and the producer. Thus, methods of quality control and reliability analysis are invaluable in industrial engincering. ™ Statistics and Psychology and Education Statistics has found wide application in psychology and education. It forms the basic of scientific approach to problem, in which inductive inference is commonly used. Students of psychology and education cannot remain ignorant of such ...cthods of problem solving in their disciplines. Statisties helps the professional psychologist, whether a counsellor, guidance worker or a clinical psychologist, in doing his work efficiently, since in the course of his work he has to administer test, interpret test scores and maintain a record of such cases. Sta‘ tical methods are used to measure human abilitystatistics in Management Studies 8 {ecg.intelligence, scholastic aptitude, personality, interest, attitude ete.) by tests, Then there ig a heory of learn te avrely based on statistical principles. Applications of stavistics in theory of learning, ali psychology and education have = Statistics and Medical, Biological and A; statistics also figures prominently in medical, biological and agricultural sciences. In medical sranpees, one is greatly concerned with the causes and incidence of diseases and the results obtained from the use of medicines and drugs, The effectiveness of a drug or medicine can be tested by using hace observations. Similarly, in biological sciences, the precise rote of various facrors inthe growth tnd development of plant under study may be important. Galton's work on ‘regression’ ane blished association bettveen statistical methods and biological theories. in agricultural sciences, the precise role of factors, viz. manure, seed quality, watering Process, rainfall, affecting yield need to be analysed for optimising results. Statistical techniques like ‘analysis of variance’ and ‘Design of experiments’ role of such factors. We have discussed above the uses of statistics in some important areas. applicable in almost all investigations where from quantitative data can be obtained While the bi techniques of statistics are the same irrespective of the subject in which application is made, certain Statistical techniques are particularly useful in specific branches, e.g., statistical quality control in engineering, factor analysis in psychology and education, econometrices in economics etc. Here our purpose is to study only certain basie techniques of statistics which are useful in any branch of study. 1.7 Limitations of Statistics Statistics is applicable in all sciences where, quantitative measurements of the phenomenon is possible, but itis not without limitations. Therefore, for the proper application of statistics, itis also necessary to know the limitations and misuses of statistics. The following are the limitations of Statistics 1, Statistics deals with aggregates of items and not with individual : Statistics is the study of mass data and deals with aggregates or groups. In fact data on an item, considered individually does not constitute statistical data, For example, the income of a family is Rs. 5000/- does not convey statistical meaning while the statement ‘the average income of 50 families is Rs. 3050/- per month’ conveys statistical sense. Statistics deals only with quantitative data : If the study yields qualitative data which can not be meaningfully converted to quantitative data, valid conclusions cannot be drawn from such study using statistical analysis. Qualitative phenomena like honesty, intelligence, poverty etc. cannot be analysed statistically unless these attributes are assigned suitable quantitative measures. 3. Statistical laws are true only on an average : Law of statistics are not universally applicable as the laws of physics, chemistry and mathematics. These may not be true for a particular individual. If itis statistically established that a particular food results is an increase in weight -the statement will be true on an average and may not be true for an individual. 4. Statistics in only one of the methods of studying a phenomenon : Statistical methods do not always provide the best possible solution to the given problem. In varying cultural and religious situations, it may fail to reveal and pin-point the underlying factors responsible for the variations in a phenomenon under study. Thus, statistical conclusions need to be supplemented by other variations. ed to the development of a new discipline called ‘Psyelometry’ gricultural Sciences are useful for isolating the In fact, statistical analysis is sica—er 5. Statistics can be misused and misinterpreted : The greatest limitation of statistics is that it is likely to be misused. The misuse may arise due to several reasons ¢.g., when conclusions are based on incomplete information or are drawn by uns vestigators. Inadequate and faulty procedure of data collection and inappropriate comparisons may arrive at fallacious conclusions, 1.8 Distrust and Misuse of Statistics While discussing statistics as science, we observed that statistical techniques are important tools in analysing problems in social, political, economic and business life. Still there is a considerable distrust in statistics. By distrust in statistics we mean lack of faith and confidence in statistical statements and methods, It is in this reference, the people often comment like; 1. Statistics is another form of lying. Statistics ean prove or disprove anything. e . There are three kinds of lies — lies, damned lies and statistics. 4, Statistics are like bikinis. They reveal what is interesting and conceal what is vital. 1.8.1 Reasons for distrust in Statistics The following are the three main reasons which account for these divergent and derogatory remarks about statistics : (i) Figures are innocent and convincing and, therefore, the people believe them easily. (ii) Figures used for providing arguments may be inaccurate or incomplete and, therefore, may lead to fallacious conclusions. Even if the figures presented are correct, these may be interpreted in a manner to mislead the person concerned. For example if we say that Firm, A and B respectively pay Rs. 80,000/- and Rs, 60,000/- per month as salary to its employees. Now, with this information, the conclusion’ firm A is paying higher salary to its employees as compared to that in firm B' in totally misleading until we know the exact number of employees in different income groups in both the firms, In these cases we might draw different conclusions. In view of this statistics should be used with utmost care. Here, it should be noted that ‘statisties neither proves anything or disproves anything’. It is only 2 tool which, if used properly, may prove very useful and if misused might lead to disaster. Here it should be noted that the fault does not Ife with the science ofstatistics as such. ‘The distrust in statistics arises because of its misuse. Prof. ¥a Lun Chow explains it as, "Derogatory statements have been inspired by the niisuse of statistics on the part of untrained practitioners of statistical methods, ignorant users of statistical results, dishonest people who employ statistics to mislead and confuse rather than 0 clarify and illuminate’. King rightly highlights, "Seience of statistics és the most useful servant but only of great value to those who understand its proper use. The fact can be further highlighted with yet another example. Medicines are used for curing diseases, but wrong administration of a medicine may be dangerous, But we cannot blame the medicine for this outcome. Similarly, if the statistical facts are mis-interpreted by the people to serve their ends, it will be unjust to blame the science as such, In this contest, it is the people who are at fault. Thus, statistics are like clay of which one can make a God or Devil as he wish.Statistics in Management Studies 10 > SOME BASIC CONCEPTS 1.9 Population The word population is used to de group or aggregate of observations relating to word pop note a well defined set, 2 jaticat investigation. Observations in population may relate tO any phenomenon, people, animals, objects, families, commodities, happenings’ of @ particular type and oo on, Thus, we may speak of population of trees, insects, manufactured products, vital events like inthe and deaths, road accidents etc. We also have a population of measurements, when repeated a nesvations are taken on the some phenomenon. For example the phenomenon under study may be the heights of all children in a school. Here the sources, children, ore human being, and the ie smvations or measurements of heights constitute the population. Similarly, the phenomenon ninder study may be to count the number of defective and non-defective boks produced in a factory. Here the sources s bolts in the factory and observations (recording defective and non-defective bolts) constitute the population. {A population can be finite or infinite according as the set contains a finite or infinite number of ioe ations, For example, the population consisting of all bolts produced in a factory on a given day: coer nber of stadents attending primary classes in Meerut city, etc. On the other hand, the population consisting ofall possible outcomes (heads or tails) in successive tosses of a coin is infinity. Usually, the infinite populations are hypothetical in nature, that is their existence can only be imagined or conceptualised, Investigators are mainly concerned with the properties of a population, and not of its individual member. For studying the properties of a population we use statistical jmethods which helps us in making statements about the properties in numerical terms. 1.10 Sample and Sampling The process of collecting observations from all the elements of a large population may be, in general, expensive time consuming and difficult. For example, for knowing the average per capita income of the people in India, one has to collect information on all earning individuals in the country, which is rather a very difficult task. It will be far cheaper and quicker to collect information on a sample of earning individuals in the country and generalise the results of the study to the entire population. Thus, often, for studying a large population, we resort to sampling, and generalise the properties of the sample to the entire population. A sample is a fraction or a subset of population drawn through a valid statistical procedure so that it can be regarded as representative of the entire population. The valid statistical procedure of drawing a sample from the population is called sampling. 1.11 Parameter and Statistic ‘The numerical quantities which characterise a population are called parameters. In other words, a parameter is a descriptive measure of some characteristics of the population, For example, if measurements of height are given for a large population, ‘Thus, a measure computed from all the observations in the population is called @ parameter. Usually all the important properties or characteristics of a population can be specified interms of few parameters. ‘The term statistic is used to denote any quantity that is calculated from sample data. Thus, a descriptive measure computed from sample observations is called « statistic. For example, the mean or average calculated from sample observations is a statistics that serves as an estimate of the parameter, the population mean. ‘Thus, the sample statistics (plural of statistic) provide information about the population, which is infact, the main purpose of statistical methods. The statistical procedures which a phenomenon under statStatistics ; An Introduction ob% are used for drawing inferences or co . nclusi¢ ‘ + Inferential or statistical tn ustons about the population for sample data are covered under rence. Here, it is important t i Here, ts Port a te Rote that while a parameter is constant for a population, the corresponding state may vaty Fem sample to sample due to sampling variations or sampling instability. sinewave ect hr a number of samples can be drawn froma population, and for each sample istic, such as the mean, standard di i i , sta eviation, ete. sample, , etc., which will vary from sample to 1.12 Fundamental of Measurements 1.12.1 Variable In everyday life, we come across objects, living beings and phenomena, which vary in a number of ways though they may be belonging to the same general category or class. Thus, manufactured products may vary in dimensions and quality, animals of the same class may differ in speed, people in respect of their age, sex, height, weight intelligence, habits, personality, etc. In all such cases, we are dealing with characteristics that vary or fluctuate in an unpredictable way. We find that shape or quality is a characteristic on which products vary ; speed is a characteristics on which animals vary; height is the characteristics on which trees vary and people vary in respect of various characteristics like age, sex, height and intelligence, ete, The characteristic on which individuals or objects differ among themselves is called a variable. Thus, speed, shape, height, weigh, age sex are variables in the above examples , Now it is the aim of every physical and behavioural science to study the nature of variation in a variable. Statistics is a branch of science which is concerned with the study of variables that vary in unpredictable fashion and helps in providing an understanding of the phenomena and objects which show such variations. 1.12.2 Types of Variables All variables can be broadly classified in the following categories @ Quantitative variables (ii) Qualitative variables (i) Quantitative Variables : Whenever the measurement of a variable is possible on a scale in some appropriate units, it is called a quantitative variable. On such variables, objects or individuals vary in magnitude and degree and the measurements show such variations. Examples of quantitative variables are : age, height} income, speed, weight, intellectual ability, ete. Here age is measurable in years or months, height in ems; income in rupees, speed in Km/hour, weights in Kg, and intellectual ability in the forms fo scores on a test. On the other hand, the measurement on a quantitative variable are called variates. Here, the variates provide actual description of the magnitude under consideration, The observed weight of persons, the monthly income of persons, marks of 50 students in an examination, the number of accidents per week, etc.are few examples of such measurements. + Types of Quantitative Variables Quantitatives variables may be further classified as (a) _ Discrete or discontinuous variable (b) Continuous variable12. Discrete or discontinuous variable is one W Gnother by definite amounts, be, they vary on Sumber of children in families, the number Similarly, marks obtained by students in Such as 0, 1, 2, 3, sw 5O. In all these examples, value 1. Further, if we consider monthly wages 0! wage may differ from its ne A Continuous Variable car 1 theocratically a: + the values of the V by finite ‘jumps’ or ‘breaks 1 of accidents per W' an examination ach value differs from the net f employees in a factory, then each vi st value by Rs. .01 oF 1 pai jssume all values Management Studies statistics variable differ from one For example, the ek can be 0, 1, 2.3.4.5, ete. s of integral values avest by @ finite ue of are given in cern isa — a finite amount. within an interval and as such are value of @ continuous variable have no divisible into smaller and smatier fractional units, Thus, Jumps’ or ‘breaks. Age, distance , height, Variable, Age is a variable which can theoretically Faewind six years. Height of an student may vary from that of another by an infinitely small ae ane, Obviously, the measurements on a continuous variable can never be exact. (ii) Qualitative Variable : A qualitative variable shows variation in objects not in terms of magnitude, but in quality or kind. These qualities are called ateribuces. A qualitative variable rae ie ple with @ scale and as such is unexpressible in magnitudes. Sex, nationality, type of crime, Secupation, religion marital status, literacy, etc., are few examples of a qualicative var able. For fastanee, people vary according, to sex as male’ and female’, according to nationality as, ‘Indian’, ‘French’, American’ or ‘Italian’. weight, ote. are some examples of a continuous agsume an infinite number of values berveen 1.13 Summation Notation In statistics one has to use certain formulae and computational procedures in the data. In these formulae certain statistical notations are universally used and the most common of nn, It is represented by the capital Greek letter © (called Sigma). If ions, analysis of available these is the summation notat are n values assumed by a variable X, then the sum of these values or observ My Xa oeas(oy xg tos Xy is represented by J) x)-Thus >! a Xt Ng beet XD) { or simply as © x. ‘Sometimes, when no confusion can result, we can write as E ‘The following results hold good about E notation. where c is a constant. 1 Se To prove the result, let us consider. Det ey beta tee ey clay xe tant 2. yd = ne. For pro = 8 it, let us consider etetet.. be (ntimes) ne5. Example 1 : A variable X assumes the values x Seow += Son y Here, a and b are constants. For two variables X and ¥, 8 > Gy + Y= OL +H) + xy tg) te + Oy + Fn) SOY t tg tert eet t¥2 be tH) xe -a)= Sx- “Leda -na i=l So? ~ 2ax, +a2)= > Yam de fal = 8, x9 = 3,3 =5,x4q=12 and x5 =10 Solution : Given that x = 8 *2 = 5 O Six =x +n teat M4 w ye exp tx} +f 5 Calculate (i) yy x; ti il 5 5 5 SP a Ye +96) Yo - 2. 5 i a 3, xy = 5, Xq = 12and xg = 10. Thus 4x5 =84+3+5412+10=38 tal xp 4x2 = 64494 25 +144 + 100=342 5 5 Gi) Yo += 4 45x Sz 38 + 25=63 ASE x; = 38 fs isl 5 ti) Yio - 9? =o? - a +4 yee 2 +554 isl isl fol 42-4 x 38 +20 = 342-152 + 20=210. ASE x? = 342Statistics in Management Studies M4 6 6 Example 2+ ry xy = Gand y i isl 225, find the values of 6 i a < 2 OYE +9 DY xce+y Gd ue +2) fa i ist 6 solution : ())' (2x; +3) =2)) x) +6x3=2« 64 6x3=12+18=30 ial i ‘ é 6 6 G Yat += oP exd= Die + yD) i ai 6 6 Gi) Voy +2? = Fo? +45) +4) xX ( ia ia a =25+4x6+6x 4525+ 24+ 24=73 Example 3 : Express the following in summation notations + Ca) xP xR et OD YL + V2 Het RAY (OAM + foo be + Koro. Solution 2546=31 3 (a) For expressing x? + x3 +... + xf in summation from, we first find the general term or the ith term, which is x? in the present case. Finally, the notation E is operated on the ith term. Thus, spe ptutxd (b) The general or the ith term in xy) + X2¥q +... + X,Y, is xj y;. Operating notation Z on this term, the given sum in notations can be put as a = Yai My The general term in fx, + foxy +... + fioio is f xj. Operating notation E on this term, one ets MY, + XV 2 tt Ln 10 AX + foX2 +--+ fioxo => fix ial N N Example 4 + Prove that Yo FOO += DY xy + 7 + By i +N ab, whereaandb tl ist a are constants, N N Solution : Considering, (x, + €) (y, +b) Yor + ay; + bx; + ab) a ta15 Summary ‘The term Statistics is used in nwo senses. As a plural noun, it means the same thing as data or numerical and quantified information. As a singular noun, the term statistics is concerned with xis of collecting, organising, summarizing, presenting, analysing and interpreting atistical methods are useful in analysing all investigations where from the ‘aca can be obtained. Thus, statistics is an indispensable tool for any scientific enquiry y the planning state to the stage of analysis and interpretations. It is applied to all science : physical. natural, biological, medical, agricultural and engineering. Italso has a vast scope in “@ management sciences, in commerce, business and industry. In statistics, the population is a well defined set, group or aggregate of observations related to a phenomenon “ical investigation. A population can be finite or infinite according as the set contains ce number of observations. Usually, infinite population is hypothetical in nature. ising the properties of population, we use statistical methods which help us in making vm about these properties in numerical forms. In the study of a large population. A sample is small pert ofa fraction of a population drawn bya suitable method. Inferential statistics or statistical inference helps us in generalishing the results of a sample to the entire population. The parameter is a descriptive measure of sonie characteristics of the population while a Geccrotive measure obtained from sample observations is called as statistic. All the important sion can be specified by few parameters. Thus, statistical methods used er with the help of certain statistics calculated from erdes of the populat for drawing inference about unknown paramel the sample, are covered under inferential statistics, jch individuals or objects differ among themselves is called a variable. A fe may be quantitative or qualitative in nature. In case the measurement of a variable is eon a geale in some appropriate unit, itis called a quantitative variable. A qua itative variable ic anmeasurable on a scale and, as such, is unexpressible in magnitudes. Again, a Eve vattable may be either discrete or continuous. Discrete or discontinuous : ‘cc only by finite jumps’ or ‘breaks’ and can assume finite values in a finite interval. On mer hand, a continuous variable can be theoretically assume infinite values within an interval the values of a continuous variable have no sjumps' or ‘breaks’, The characteristics on Whi