Introduction to Statistics

Meaning of Statistics

The word Statistics gives different meaning when used in the singular and plural senses. In the singular sense, it means the Science of Statistics which is concerned with the collection, classification, interpretation and analysis of numerical facts helping in decision making.

In the same way, the plural sense it refers to numerical facts and figures systematically collected for special purposes.

Origin and Development of Statistics

The word Statistics is believed to be extracted from one of these words Status(Latin),Statistik(German), Statistique(French), Statista(Italian). Each word means 'Political State' and was confined to government and its offices. But time broadened the Scope of Statistics. J. Kepler used Statistics in his study of movements of heavenly bodies.

John Graunt is called the father of 'Vital Statistics' who was the first man to study Statistics of birth and death in the seventeenth century. Back in seventeenth and eighteenth century J. Bernoulli and Laplace discovery and development of the theory of probability laid the foundation of the modern theory of Statistics.

Few other contributions are listed below:

• Principle of least squares law by Gauss
• the normal probability curve by De-Moivre
• the principle of 'constancy of great numbers' by A.J. Outlet.

Great Statistician like Francis Galton, Karl Pearson, R.A. Fisher and many others made the substantial contribution to the development of statistical methods.

Statistics now has been a vital part of each and every field of human activities and all discipline of human education like Science, Commerce, Industry Planning, Medicine, Economics, Finance etc.

Definition of Statistics

We will study the definition of Statisti cs in both singular and plural sense.

Statistics as Numerical Facts (Plural Sense)

Webster defined Statistics as "The classified facts representing the condition of the people in a state - especially those facts which can be stated in numbers or in any tabular or classified arrangement."

Achenewall defined Statistics as "A collection of noteworthy facts concerning state both historical and descriptive."

Both these definitions are narrow and confine area of Statistics the affairs of the state. The most comprehensive definition of Statistics as numerical data is given by Horace Secrist as "Statistics may be defined as the aggregate of facts affected to a marked extent by a multiplicity of causes, numerically expressed, enumerated or estimated according to reasonable standards of accuracy, collected in a systematic manner, for a predetermined purpose and placed in relation to each other".

Statistics as a Science (Singular Sense)

Croxton and Cowden defined Statistics as "Statistics may be defined as the collection, presentation, analysis and interpretation of numerical data." This definition is simple but comprehensive.

But Ya-Lun-Chou has a different perspective, he says," Statistics is a method of decision-making in the face of uncertainty on the basis of numerical data and calculated risks."

Functions of Statistics

1. to present facts in a definite form: it expresses facts in numbers making the data precise and definite and easily understandable.The main functions of Statistics are as follows:
2. to simplify complexities: the mass of data can be condensed by statistical methods making easily comprehensible and fit for analysis.
3. to facilitate comparison: the condensed data thus can be easily used for comparative studies.
4. to help in formulating and testing the laws of other sciences: by the inductive methods of statistics are immensely useful in testing and correction of laws of social and natural science.
5. to formulate and test the hypothesis: Statistical methods are extremely useful in formulating and testing the hypothesis.
6. to estimate for the present and forecast for the future: by analysing the past and present data, it helps in forecasting the future trends based on that analysis.
7. to help in the formulation of policies: many departments and state formulate the policies only after analysing data with the help of statistics.
8. to enlarge individual knowledge and experience: Statistics help humans develop their reasoning power and efficiency.

Uses of Statistics

In the complex world of today, Statistics plays a significant role in the solution of problems in every area of human research and studies. Some of the uses are listed here.

Statistics in Society

Statistics has made a deep impression on every aspect of society like academics disciplines of study, natural and social sciences, business, government, and administration.

Applied Statistics, Mathematical Statistics and Theoretical Statistics

Machine Learning and Data Mining

Data management and data analysis are major factors for it. And data analysis is a major area of Statistics.

Statistics in Specialized Disciplines

There is wide range of specialized disciplines of statistics, few of them are listed below:

• Energy Statistics
• Biostatistics
• Chemometrics : for data analysis in Chemistry
• Actuarial Science : assesses risk in finance and insurance industries
• Demography
• Medical Statistics
• Social Statistics
• Psychological Statistics
• Epidemiology : Statistical analysis of diseases
• Econometrics : Statistical analysis of economic data

Statistics is a major and important tool in business and manufacturing of goods.

Limitations of Statistics

Though Statistics has major areas of applications but it is not without limitations. Few of them are:

• Statistics does not study individuals:It deals with aggregate, individual and isolated fact of the figure is outside scope of Statistics.
• Statistics does not study qualitative phenomena:It can only deal with numerical data, qualitative statements have no place here.
• the Laws of Statistics are true only on average:Laws of Statistics are not universally true, precise and perfect and cannot make sure forecasts. The results obtained from them are true only on average.
• Statistics is one of the methods used for the study of problems:There are many methods to sort out a problem but statistics is one of them.
• Statistics is liable to be misused: An Unscrupulous person can easily misuse statistics manipulating the data as per their wish.

References:

B.Sc. Statistics, Krishna Publications

Business Statistics, Bhundipuran Parakashan

Wikipedia.org