What is Statistics?

The word “Statistics” has been derive from the Latin

word “Status”or Italian word “Statista” or German word “Statistika”. Each of these
words means Political State. Initially, Statistics was used to collect the information
of the people of the state about their income, health, illiteracy and wealth etc.
But now a day, Statistics has become an important subject having useful
application in various fields in day to day life. Definition:- According to Bowley
- “Statistics are numerical statements of facts in any department of enquiry placed
in relation to each other.” According to Yule and Kendall ----- “By Statistics we
mean quantitative data affected to marked extent by multiplicity of causes.”
Q. Important terminology in statistics 1. Population: A population we mean a
well defined set or group of all the objects for a particular study. The objects may
be persons, plants, books, fishes in ponds, shops etc. the population will consist of
certain elements like the plants of a certain kind in a specified field, the fishes in a
pond, the unemployed person in India, books in library and so on. For instance, if
we want to study the properties of students in a school then the population
consists of all the students of school. 2. Variable: A property of objects is known
as variable which differ from object to object and is expressible numerically, in
terms of numbers. For instance: the marks in Mathematics of students in a class
can be expressed in the term of marks obtained by the students. 3. Attribute: A
property and characteristic of objects is known as attribute which are not
expressible uantitively in number. We can express the data qualitatively. For
example, smoking, color, honesty etc. Q. NATURE OF STATISTICS. Statistics
as a science: science refers to a systematized body of knowledge. It studies cause
and effect relationship and attempts to make generalizations in the form of
scientific principles or laws. “Science, in short, is like a light house that gives light
to the ships to find out their own way but doesn’t indicate the direction in which
they should go.” Like other sciences, Statistical Methods are also used to answer
the questions like, how an investigation should be conducted. Statistics as an art:
we know that science is a body of systematized knowledge. How this knowledge is
to be used for solving a problem is work of an art. An art is an applied knowledge.
It refers 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 conclusion. Statistics is both science
and art: After studying science and art aspects of statistics, it is used not only to
gain knowledge but also to understand the facts and draw important conclusions
from it. If science is knowledge, then art is action. Looking from this angle
statistics may also be regarded as an art. Q. SCOPE OF STATISTICS In early
stages, the scope of statistics was very limited. It was confined mainly to the
administration of government and was, therefore, called the ‘Science of Kings’.
But in modern time, the scope of statistics has widened usually all those facts
come in the purview of statistics, which are expressed in quantitative terms
directly or indirectly. That is why Croxton & Cowden observed, “Today there is
hardly a phase of endeavor which does not find statistical devices at least
occasionally useful.” It is not unfair to say, science without statistics bears no fruit
and statistics without science have no root.” The applications of statistics are so
numerous that it is often remarked, “Statistics is what statisticians do.” Now let us
examine a few fields or areas in which statistics is applied. 1. Statistics and the
State: in recent years the functions of the state have increased tremendously. The
concept of the state has changed from that of simply maintaining law and order to
that of a welfare state. Statistical data and statistical methods are of great help in
promoting human welfare. The government in most countries is the biggest
collector and user of statistical data. 2. Statistics in Business and Management:
with growing size and increasing competition, the problems of business
enterprises have become complex. Statistics is now considered as an
indispensable tool in the analysis of activities in the field of business, commerce
and industry. The object can be achieved by properly conducted market survey
and research which greatly depends 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 the phenomena. 3. Statistics and
Economics: R.A.Fisher complained of “the painful misapprehension that statistics
is a branch of economics.” Statistical Data and methods are of immense help in
the proper understanding of the economic problems and in the information of
economic policies. In the field of exchange, we study markets, law of prices based
on supply and demand, cost of production, banking and credit instruments etc.
The development of various economic theories own greatly to statistical methods,
e.g., ‘Engel’s law of family expenditure’, ‘Malthusian theory of population’. The
impact of mathematics and statistics has led to the development of new
disciplines like ‘Econometrics’’ and ‘Economic Statistics’. 4. Statistics and
Psychology and Education: Statistics has found wide application in psychology and
education. Statistical methods are used to measure human ability such as;
intelligence, aptitude, personality, interest etc. by tests. Theory of learning is also
based on Statistical Principles. Applications of statistics in psychology and
education have led to the development of new discipline called ‘Psychometric’.
5. Statistics and Natural science; Statistical techniques have proved to be
extremely useful in the study of all natural sciences like biology, medicine,
meteorology, botany etc. 6. Statistics and Physical Science: The physical
sciences in which statistical methods were first developed and applied. It seems to
be making increasing use of statistics, especially in astronomy, chemistry,
engineering, geology, meteorology and certain branches of physics. 7. Statistics
and Research; statistics is indispensable in research work. Most of the
advancement in knowledge has taken place because of experiments conducted
with the help of statistical methods. Statistical methods also affect research in
medicine and public health. In fact, there is hardly any research work today that
one can find complete without statistical methods. 8. Statistics and Computer:
The development of statistics has been closely related to the evolution of
electronic computing machinery. Statistics is a form of data processing a way of
converting data into information useful for decision-making. The computers can
process large amounts of data quickly and accurately. This is a great benefit to
business and other organizations that must maintain records of their operations.
Q. FUNCTIONS OF STATISTICS Statistics performs the functions of making
the numerical aspects of facts simple, precise, comparable and reliable. In fact,
the various functions performed by statistics are the basis of its utility. R.W.
Burgess says, “The fundamental gospel of statistics is to push back the domain of
ignorance, prejudice, rule of thumb, arbitrary and premature decisions, tradition
& dogmatism and to increase the domain in which decisions are made. Principles
are formulated on the basis of analyzed quantitative facts.” 1. Numerical and
definite expression of facts: The first function of the statistics is the collection and
presentation of facts in numerical form. We know that the numerical presentation
helps in having a better understanding of the nature of a problem. One of the
most important functions of statistics is to present general statements in a precise
and definite form. Statements and facts conveyed in exact quantitative terms are
always more convincing than vague utterances. 2. Simplifies the data
(condensation): Not only does statistics present facts in a definite form but it also
helps in condensing mass of data into a few significant figures. According to
A.E.Waugh, “the purpose of a statistical method is to simplify great bodies of
numerical data.”In fact, human mind cannot follow the huge, complex and
scattered numerical facts. So these facts are made simple and precise with the
help of various statistical methods like averages, dispersion, graphic or
diagrammatic, presentation, classification, tabulation etc. 3. Comparison of facts:
Baddington states, “The essence of the statistics is not only counting but also
comparison.” The function of comparison does help in showing the relative
importance of data. For example- the pass % of examination result of a college
may be appreciated better when it is compared with the result of other college or
the results of previous years of the same college. 4. Establishment of relationship
b/w two or more phenomena; to investigate the relationship b/w two or more
facts is the main function of statistics. For example-demand and supply of a
certain commodity, prices and wages, temperature and germination time of seeds
are interrelated. 5. Enlarges individual experiences: In word of Bowley, “the
proper function of statistics indeed is to enlarge individual experience.” Statistics
is like a master key that is used to solve problems of mankind in every field. It
would not be exaggeration to say that many fields of knowledge would have
remained closed to the mankind forever but for the efficient and useful
techniques and methodology of the science of statistics. 6. Helps in the
formulation of policies: statistics helps in formulating policies in different fields,
especially in economic, social and political fields. The government policies like
industrial policy, export-import policies, taxation policy and monetary policy are
determined on the basis of statistical data and their movements, plan targets are
also fixed with the help of data. 7. Testing of hypothesis: statistical methods are
also employed to test the hypothesis in theory and discover newer theory. For
example-the statement that average height of students of college is 66 inches is a
hypothesis. Here students of college constitute the population.