statistics is a method of decision making in the face of uncertainity on the basis of numerical data and calculated risks. comment and explain with suitable illustration?

  1. Economic problem arises in a particular due to 4 main reason :-  Unlimited wants , limited availability of resources , alternative usage of resources and scarcity. The main function of statistics is to provide numerical data based on various socio- economic aspects so that through which we can make decisions to mitigate the problems.
  2. But statistical data itself is uncertain . There are various error committed by the enumerator or the respondent which make the result of the data inaccurate.
  3. sampling error - the sample which is chosen is sometime very less and in such a way that the result is inaccurate .
  4. Error in data acquisition - Sometime you may misunderstand the person who has appointed you for taking interview or even the respondents answer. At such time the data which is collected is invalid.
  5. Non- response error- Sometimes the respondent may not respond genuinely or correctly to your question at those times the data which is collected is inaccurate.
  6. Sampling bias- sometimes the enumerator may influence the answer given by the respondent or the respondent get influenced by someone else at such cases also the data is inaccurate.
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