This document provides an introduction to business statistics. It defines statistics in both a plural and singular sense. In the plural sense, statistics refers to numerical statements of facts related to any field of inquiry that are affected by multiple causes and placed in relation to each other. In the singular sense, statistics is defined as the collection, presentation, analysis, and interpretation of numerical data. The key features of statistics in both senses include the aggregation of facts, numerical expression of data, influence of multiple factors, and reasonable accuracy in data collection. Limitations of statistics include only being able to study numerical facts, studying aggregates rather than individual units, and requiring homogeneity of data.
2. ORIGIN AND MEANING
• Statistics has its origin in Latin word Status, Italian word Statista and German
term Statistik all of which mean “Political State”.
• Statistics refers to body of principles and procedures developed for
collection, classification, summarization and meaningful interpretation and
for the use of such data.
3. DEFINITION: PLURAL SENSE
• Statistics are numerical statements of facts in any department of enquiry
placed in relation to each other”-Bowley
• By statistics we mean quantitative data affected to a marked extent by
multiplicity of cause”- Yule and Kendall
• Under this, the Statistics refers to numerical statement of facts related to any
field of enquiry such as data related to income, expenditure, population etc
in the sense of numerical data or Statistical data.
4. FEATURES IN PLURAL SENSE
• Aggregation of facts- A single number does not constitute Statistics as no conclusion can be drawn from it.
Only the aggregate of facts capable of offering meaningful information constitute Statistics.
• Numerically expressed- Statistics are expressed in numbers. Qualitative data like rich, poor, beautiful, big etc
cannot be termed Statistics.
• Affected by Multiple causes- Statistics is not impacted by only 1 factor as multitude of factors influence it.
For e.g rise in prices can be attributed to reduction in supply, increase in demand, rise in input costs etc.
• Reasonable Accuracy- A reasonable degree of accuracy must be maintaining while collecting the statistical
data.
• Placed in relation to others- Such data is called Statistics which is mutually related and comparable. Height
of 40 people cannot be compared with age of 40 people as data is not related. 6. Pre-determined purpose-
Data collected without any purpose or randomly will only be a numerical value and not Statistics.
5. DEFINITION: SINGULAR SENSE
• “Statistics may be defined as the collection, presentation, analysis and
interpretation of numerical data.”-Croxton and Cowden
• “Statistics is the science which deals with the collection, classification and
tabulation of numerical facts as a basis for the explanation, description and
comparison of phenomena- Lovitt
6. FEATURES
• Collection of data- Decide how, where, when, what kind of data to be collected.
• Organization of data- Organize the collected data to make it comparable and
simple.
• Presentation of data- Make the data intelligible, brief and attractive.
• Analysis of data- To draw conclusions, analysis of data is required by different
methods e.g. central tendency, correlation.
• Interpretation of data- Comparison and conclusions in simple and easy language.
7. LIMITATIONS
• Study of Numerical facts-Statistics can only study such facts which can be
expressed in numerical terms.
• Study of Aggregates only- Statistics studies only the aggregates and not
particular unit. No conclusion is possible from single piece of data.
• Not the only method- Statistics is not the only method to study and many a
time does not suggest the best solution of each problem.
• Homogeneity of data- Quantitative data has to be consistent and
homogeneous otherwise it will not be possible to draw conclusions.
