briefly explain three functions of statistics - Economics - Introduction

Question

briefly explain three functions of statistics

Pratishtha Majumdar · Answer

The following are some of the important functions of
statistics
1 Presents data in a simplified form: With the help of
statistical tools, a large and complex data can be presented in a
simple and understandable form
2 Gives a definite form to the facts:Statistics allows the
conclusions of a research or study to be presented in numerical
form This gives the conclusions a definite quality
3 Facilitates comparison: Data can be easily compared using
statistical tools such as averages, percentages and ratios
Comparison of data helps us in drawing important economic
conclusions For instance, a comparison of the average incomes in
rural areas and in urban areas helps us in drawing conclusions
relating to regional inequality in income
4 Guides in the formulation of theories and policies:Policies on
various economic matters such as wages and prices are formed on the
basis of statistical data Statistics forms the basis for the
formulation and testing of theories
5 Helps in forecasting:Statistical techniques help in
forecasting and predicting the future behaviour of various
variables such as market situations