Explain the scope of statistics.

Scope or 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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Statistics plays a vital role in every fields of human activity. Statistics has important role in determining the existing position of per capita income, unemployment, population growth rate, housing, schooling medical facilities etc…in a country. Now statistics holds a central position in almost every field like Industry, Commerce, Trade, Physics, Chemistry, Economics, Mathematics, Biology, Botany, Psychology, Astronomy etc…, so application of statistics is very wide. Now we discuss some important fields in which statistics is commonly applied. (1) Business: Statistics play an important role in business. A successful businessman must be very quick and accurate in decision making. He knows that what his customers wants, he should therefore, know what to produce and sell and in what quantities. Statistics helps businessman to plan production according to the taste of the costumers, the quality of the products can also be checked more efficiently by using statistical methods. So all the activities of the businessman based on statistical information. He can make correct decision about the location of business, marketing of the products, financial resources etc… (2) In Economics: Statistics play an important role in economics. Economics largely depends upon statistics. National income accounts are multipurpose indicators for the economists and administrators. Statistical methods are used for preparation of these accounts. In economics research statistical methods are used for collecting and analysis the data and testing hypothesis. The relationship between supply and demands is studies by statistical methods, the imports and exports, the inflation rate, the per capita income are the problems which require good knowledge of statistics. (3) In Mathematics: Statistical plays a central role in almost all natural and social sciences. The methods of natural sciences are most reliable but conclusions draw from them are only probable, because they are based on incomplete evidence. Statistical helps in describing these measurements more precisely. Statistics is branch of applied mathematics. The large number of statistical methods like probability averages, dispersions, estimation etc… is used in mathematics and different techniques of pure mathematics like integration, differentiation and algebra are used in statistics. (4) In Banking: Statistics play an important role in banking. The banks make use of statistics for a number of purposes. The banks work on the principle that all the people who deposit their money with the banks do not withdraw it at the same time. The bank earns profits out of these deposits by lending to others on interest. The bankers use statistical approaches based on probability to estimate the numbers of depositors and their claims for a certain day. (5) In State Management (Administration): Statistics is essential for a country. Different policies of the government are based on statistics. Statistical data are now widely used in taking all administrative decisions. Suppose if the government wants to revise the pay scales of employees in view of an increase in the living cost, statistical methods will be used to determine the rise in the cost of living. Preparation of federal and provincial government budgets mainly depends upon statistics because it helps in estimating the expected expenditures and revenue from different sources. So statistics are the eyes of administration of the state. (6) In Accounting and Auditing: Accounting is impossible without exactness. But for decision making purpose, so much precision is not essential the decision may be taken on the basis of approximation, know as statistics. The correction of the values of current asserts is made on the basis of the purchasing power of money or the current value of it. In auditing sampling techniques are commonly used. An auditor determines the sample size of the book to be audited on the basis of error. (7) In Natural and Social Sciences
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Statistics has emerged as the lifeline of Economics. It is because of the growing use of statistics by the economists that the subjects like econometrics have been added to the horizon of Economics.
The following points highlight the significance of statistics in Economics:
  1. Quantitative expression of Economic problems
  2. Inter-sectoral and Inter-temporal Comparisons
  3. Working out Cause and Effects Relationship
  4. Construction of Economic Theories or Economic Models
  5. Economic Equilibrium.
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