USES OF STATISTICS: Statistics is used in many fields of life some examples are given below: a. Banks: Banks are very important Econo...
USES OF STATISTICS:
Statistics is used in many fields of life some examples are given below:
a. Banks:
Banks are very important Economic part of a country. They do their
work on the guess that all the depositors' do not' takeout their money on the
same day. Bankers use Probability Theory to approximate the deposits and
claims to takeout their money.
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| uses of statistics |
b. Insurance companies:
Insurance companies play an important role to
increase the Economic progress. These companies collect payment from the
people. They approximate the death rate, accident rate and average life of
people from the LIFE TABLES. The payment per month is decided on these
rates.
c. Business:
The relation between supply and demand is very important topic
Of every day life. The changes in prices and demands are studied by INDEX
NUMBERS. The relation between supply and demand is determined by
CORRELATION And REGRESSION
d. Economic Planning:
Economic planning for future is very .important problem
for the Economist.
For example
(i) opening of new schools and colleges
(ii) revision of pay scales of employees
(iii) construction of new hospitals and
(iv)Preparation of government budgets etc. All these require estimates at some
future time which is called FORECASTING. Forecasting is made by
REGRESSION ANALYSIS.
e: Population of a country:
Many Economic plans are affected by the
Population of a country. It is necessary to know the growth rate of population
because many manufacturing plans depend on it. Growth Rate is obtained by
the GEOMETRIC METHOD,
f: All in the world are recorded.
For example births, deaths, imports, exports, end crops grown by the farmers etc.
These are recorded as Statistical data and analyzed for different purposes.
g: Sampling: A method of selecting a typical part of population is called
Sampling. It is used in Economic Surveys. The results of these surveys are
used in FORECASTING. QUALITY CONTROL CHARTS are used to control
various products.
h: Medical
In medical sciences the effects of different medicines and
treatments against different diseases are determined by using a very important
statistical technique TESTING (A procedure which is used to decide whether or
not the assumed statement under test is supported by sample data).
i: Construction Companies : All construction companies start and run their
programs after making judgment about the total cost of the project (job, work).
To guess the expenditure a very important statistical technique ESTIMATION is used.
j: M.B.A : If total earning from all sources is divided into Ten parts then Nine
parts of earnings are related to business. In master of business administration,
management of different sources of earnings, planning of projects, forecasting
of economic trends are learned from various statistical techniques.
k: Biology :
In Biology CORRELATION and REGRESSION is used for analysis
of hereditary relations. To classify the organisms into different classes
according to their age. Height, weight etc. The rules of CLASSIFICATION AND
TABULATION of Statistics are used.
I: Psychology and Sociology:
In psychology all the experiments depend upon
sample data. Hence by using of suitable sampling technique a psychologist can
obtain representative sample. In sociology social surveys like unemployment,
medical facilities, housing facilities, education facilities etc are conducted. Here
statistical methods are used to collect. analyze and interpret the data.
Characteristics of Statistics:
Following important characteristics are shown by Statistics:
(i)It deals with aggregate of facts rather than a single value.
(ii) It analyzes and interprets the relationships among variables.
(iii) It deals with uncertainties which are present every where in every event.
(iv) Statistical techniques are applied only to the facts which can be
numerically expressed.
(v) It simplifies the complex mass of data into a form which is easy to
understand, analyze and interpret.
Limitations of Statistics:
Some most common limitations of Statistics are:
(i)It does not deal with single value its techniques are applied to group of values.
(ii)Its results are valid on the average and give estimated values.
(iii) Different methods give different results, For example average calculated
by different method such as arithmetic mean, Geometric mean and
Harmonic mean etc give different answer.
(iv) Statistical techniques are applied to only to the facts which can be
numerically measured.
(v) If data are not collected carefully, the conclusion drawn will be
misleading and proper representation of data is confused.
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