Ppt on introduction to Business statistics
- 2. ORIGIN AND MEANING • Statistics has its origin in Latin word Status, Italian word Statista and German term Statistik all of which mean “Political State”. • Statistics refers to body of principles and procedures developed for collection, classification, summarization and meaningful interpretation and for the use of such data.
- 3. DEFINITION: PLURAL SENSE • Statistics are numerical statements of facts in any department of enquiry placed in relation to each other”-Bowley • By statistics we mean quantitative data affected to a marked extent by multiplicity of cause”- Yule and Kendall • Under this, the Statistics refers to numerical statement of facts related to any field of enquiry such as data related to income, expenditure, population etc in the sense of numerical data or Statistical data.
- 4. FEATURES IN PLURAL SENSE • Aggregation of facts- A single number does not constitute Statistics as no conclusion can be drawn from it. Only the aggregate of facts capable of offering meaningful information constitute Statistics. • Numerically expressed- Statistics are expressed in numbers. Qualitative data like rich, poor, beautiful, big etc cannot be termed Statistics. • Affected by Multiple causes- Statistics is not impacted by only 1 factor as multitude of factors influence it. For e.g rise in prices can be attributed to reduction in supply, increase in demand, rise in input costs etc. • Reasonable Accuracy- A reasonable degree of accuracy must be maintaining while collecting the statistical data. • Placed in relation to others- Such data is called Statistics which is mutually related and comparable. Height of 40 people cannot be compared with age of 40 people as data is not related. 6. Pre-determined purpose- Data collected without any purpose or randomly will only be a numerical value and not Statistics.
- 5. DEFINITION: SINGULAR SENSE • “Statistics may be defined as the collection, presentation, analysis and interpretation of numerical data.”-Croxton and Cowden • “Statistics is the science which deals with the collection, classification and tabulation of numerical facts as a basis for the explanation, description and comparison of phenomena- Lovitt
- 6. FEATURES • Collection of data- Decide how, where, when, what kind of data to be collected. • Organization of data- Organize the collected data to make it comparable and simple. • Presentation of data- Make the data intelligible, brief and attractive. • Analysis of data- To draw conclusions, analysis of data is required by different methods e.g. central tendency, correlation. • Interpretation of data- Comparison and conclusions in simple and easy language.
- 7. LIMITATIONS • Study of Numerical facts-Statistics can only study such facts which can be expressed in numerical terms. • Study of Aggregates only- Statistics studies only the aggregates and not particular unit. No conclusion is possible from single piece of data. • Not the only method- Statistics is not the only method to study and many a time does not suggest the best solution of each problem. • Homogeneity of data- Quantitative data has to be consistent and homogeneous otherwise it will not be possible to draw conclusions.
- 8. • THANK YOU