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3. Long Answer Type Questions

1. Explain the scope of Statistics.
2. Absence of scarcity would mean absence of Economics. Explain with logical reasoning.
3. Define Statistics. What are its basic characteristics?
4. Explain the main limitations of Statistics?
5. Describe the main stages of Statistics and the related tools.
6. "Statistics is defined as aggregate of numerical facts." Give a few examples.
7. "Statistics is defined as the 'science' which deals with the analysis of statistical data." Give examples.
8. "There are three kinds of lies-lies, damned lies and Statistics." Explain the statement.



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Scope and importance of Statistics:

1.?Statistics and planning:?Statistics in indispensable into planning in the modern age which is termed as ?the age of planning?. Almost all over the world the govt. are re-storing to planning for economic development.

2.?Statistics and economics:?Statistical data and techniques of statistical analysis have to immensely useful involving economical problem. Such as wages, price, time series analysis, demand analysis.

3.?Statistics and business:?Statistics is an irresponsible tool of production control. Business executive are relying more and more on statistical techniques for studying the much and desire of the valued customers.

4.?Statistics and industry:?In industry statistics is widely used inequality control. In production engineering to find out whether the product is confirming to the specifications or not. Statistical tools, such as inspection plan, control chart etc.

5.?Statistics and mathematics:?Statistics are intimately related recent advancements in statistical technique are the outcome of wide applications of mathematics.

6.?Statistics and modern science:?In medical science the statistical tools for collection, presentation and analysis of observed facts relating to causes and incidence of dieses and the result of application various drugs and medicine are of great importance.

7.?Statistics, psychology and education:?In education and physiology statistics has found wide application such as, determining or to determine the reliability and validity to a test, factor analysis etc.

8. Statistics?and war:?In war the theory of decision function can be a great assistance to the military and personal to plan ?maximum destruction with minimum effort.?
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Meaning of statistics:
By Statistics we mean aggregates of facts affected to a marked extent by multiplicity of causes numerically expressed, enumerated or estimated according to reasonable standards of accuracy, collected in a systematic manner for a pre-determined purpose and placed in relation to each other.?
The fundamental characteristics of statistics are described below.


1.?????????????????Statistics are aggregate of facts:


Statistics are aggregate of facts. A single figure cannot called statistics. Because can be drawn about such figures e.g. if we say that income of a person is RS 500, this figure is meaningless, because we cannot draw any conclusion about this figure i.e. whether the income of a person has increased or decrease. Thus the science of statistics is the science of aggregate and not of individuals.


2.?????????????????Statistics are affected by multiplicity of causes:


Statistics (i.e. figure) obtained about a particular phenomena are due to a number of causes e.g. production of wheat depends on seeds, fertilizer, irrigation, rainfall etc. it is not possible to study the influence of these factors separately, because these factors jointly determine the yield. ?


3.?????????????????Statistics are numerically expressed:


Statistics are numerical statement of facts. Qualitative expression such as honestly, good, bad etc. do not form statistics e.g. consider the following statement ?QUAID AZAM was a great leader?. This is not a statistics statement. If on the other hand, we say that per capita income in Pakistan in 1960 was RS 840 and RS 1400 in 1990. This is of course a statistics statement as per capita incomes is expressed numerically and is comparable.???????????


4.?????????????????Statistics are collected in a systematic manner:


When statistics are collected in a systematic manner, then they may give accurate result. If they are collected in a haphazard manner, then the very purpose of collecting statistics will be damaged such statistics always leads to misleading conclusions. Thus there must be trained investigators and proper organizations for the collection of statistics.??


5.?????????????????Statistics are placed in relation to each other:


Statistics are collected mainly for the purpose of comparison. Data collected must be comparable and homogenous e.g. if we compare the heights of persons with their income, it is not statistics, on the other hand if we compare the ages of husbands with the ages of their wives. Then it is called statistics.


6.?????????????????Statistics are collected for a per-determined purpose:


The purpose for which statistics are to be collected is always determined in advance. It enables the investigator to distinguish between wanted and unwanted data. If the purpose is not determined in advance, then investigator may collect the irrelevant data.
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Limitations are -

1.?Qualitative Aspect Ignored:

The statistical methods don?t study the nature of phenomenon which cannot be expressed in quantitative terms.

Such phenomena cannot be a part of the study of statistics. These include health, riches, intelligence etc. It needs conversion of qualitative data into quantitative data.
2. It does not deal with individual items:

It is clear from the definition given by Prof. Horace Sacrist, ?By statistics we mean aggregates of facts?. and placed in relation to each other?, that statistics deals with only aggregates of facts or items and it does not recognize any individual item. Thus, individual terms as death of 6 persons in a accident, 85% results of a class of a school in a particular year, will not amount to statistics as they are not placed in a group of similar items. It does not deal with the individual items, however, important they may be.

3.?It does not depict entire story of phenomenon:

When even phenomena happen, that is due to many causes, but all these causes can not be expressed in terms of data. So we cannot reach at the correct conclusions. Development of a group depends upon many social factors like, parents? economic condition, education, culture, region, administration by government etc. But all these factors cannot be placed in data. So we analyse only that data we find quantitatively and not qualitatively. So results or conclusion are not 100% correct because many aspects are ignored.

4. It is liable to be miscued:

As W.I. King points out, ?One of the short-comings of statistics is that do not bear on their face the label of their quality.? So we can say that we can check the data and procedures of its approaching to conclusions. But these data may have been collected by inexperienced persons or they may have been dishonest or biased. As it is a delicate science and can be easily misused by an unscrupulous person. So data must be used with a caution. Otherwise results may prove to be disastrous.
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