Meaning, Features, Functions and Importance

2.  The word “Statistics” has been derived
from the Latin word ‘Status’ that
means a group of numbers or figures.
 In plural sense, it means a systematic
collection of numerical facts.
 In singular sense it is the science of
collecting, classifying and using
statistics.

3.  Data must be an aggregate of certain facts.
 Data collected should be Systematically
arranged.
 Data should be numerically expressed so that
counting or measurement of data can be made
possible.
 The numerical statement of facts should be
precise and meaningful, for which the field of
enquiry should not be very large.
 Data should be collected in a systematic
manner
 The purpose of collecting the data must be
clear and pre determined.
 the data collected must be comparable

4.  Collection of data to study a problem. Data
can obtained from the primary, secondary
and other sources also.
 Presentation of data in a systematic manner
in various forms such as frequency
distribution in form of tables, graphs,
diagrams or pictures.
 Analysis of data to derive conclusion from
them with the use of statistical tools such as
measures of central tendency.
 Interpretation of data to derive some
conclusions in order to formulate certain
policies.

5.  It is that branch of statistics which is
concerned with describing the
population .
 It involves organizing, analysing and
presentation of data in the form of
Charts, Graphs and Tables
 It helps to summarize sample.

6.  It is a type of statistics, that focuses on
drawing conclusions about the
population by comparing, testing and
predicting the data.
 It explains the chances of occurrence of
an event.

7.  To simplify huge collection of numerical data
 To compare and simplify data
 To investigate the cause and effect relationship
between two or more facts
 To test the various types of hypothesis and
discover a new theory
 To predict the future course of action
 To indicate trend behaviour
 To measure uncertainty
 To draw rational conclusions on the basis of
facts collected and analyzed

8.  It deals with groups and aggregates only
 Applicable on quantitative data only
 Cannot be applied to heterogeneous data
 Person with expert knowledge of statistics
can only handle statistical data efficiently
 Inferential statistics involves certain errors

9.  IN BUSINESS: Statistics involves making
decisions, and in the business world
businessman must be very quick and
accurate in decision making.
 Eg. Statistics helps businessman to plan
production; 4 out of 5 dentists
recommend Dentine is an example of
marketing phrase that businesses will
use to make their product sell.

10.  IN ECONOMICS: In economics research
statistical methods are used for collecting
andanalysis the data and testing hypothesis.
The relationship between supply and
demands is studies bystatistical methods,
the imports and exports, the inflation rate,
the per capita income are the problems
whichrequire good knowledge of statistics.

11.  In Banking: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.

12.  In State Management : Statistics is essential
for a country. Suppose if the government
wantsto 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
government budgets mainly depends upon
statistics because it helps in estimating the
expected expenditures and revenue from
different sources.

13.  In Accounting and Auditing:Accounting is
impossible without exactness. In auditing
sampling techniques are commonly used. An
auditor determines the sample size of the book
to be audited on the basis of error
 In Astronomy: Eg.This distance of moon from
the earth is measured. Since old days the
astronomers have been statistical methods like
method of least squares for finding the
movements of stars.