STATISTICS:
Meaning & Uses
The
practice or science of collecting and analysing numerical data in large
quantities, especially for the purpose of inferring proportions in a whole from
those in a representative sample. Statistics is branch of
mathematics concerned with C2 IA i.e Collection, Classification, Interpretation
& Analysis of
numerical facts, for drawing inferences on
the basis of their quantifiable likelihood (probability).It
can interpret aggregates of data too
large to be intelligible by ordinary
observation because such data (unlike individual quantities) tend
to behave in regular, predictable manner. It is subdivided into descriptive statistics and inferential statistics.
USES OF
STATISTICS:
Statistics plays a vital role in every fields of human activity. It 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.
In the field of 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 the field of 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 the field of 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.
4.
In the field of 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.
5.
In the field of 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.
6.
In the field of Natural and Social
Sciences:
Statistics
plays a vital role in almost all the natural and social sciences. Statistical
methods are commonly used for analyzing the experiments results, testing their
significance in Biology, Physics, Chemistry, Mathematics, Meteorology, Research
chambers of commerce, Sociology, Business, Public Administration, Communication
and Information Technology etc.
7.
In the field of Astronomy:
Astronomy is
one of the oldest branches of statistical study; it deals with the measurement
of distance, sizes, masses and densities of heavenly bodies by means of
observations. During these measurements errors are unavoidable so most probable
measurements are founded by using statistical methods.
Example: 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.
8.
In the field of Research: Statistics plays a vital role in
Researches. For example it can used as in data collection, analysis.
Interpretation , explanation and presentation. Use of statistics will guide
researchers in research for proper characterization, summarization.
Presentation, interpretation of the
result of research. Statistics provides a platform to for research as to ; How to go about our
research, either to consider a sample or the whole population, the Techniques
to use in data collection and observation, how to go about the data description
by the using of measures of central tendency like Mean , Median, Mode etc. To
finding the test by using T test, Chi
square, ANOVA etc.
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