Q.1 Elucidate the functions of Statistics

Ans:- STATISTICS-

Statistics, the scientific discipline that deals with the collection, classification, analysis, and interpretation of numerical facts or data, was invented primarily in the nineteenth and twentieth centuries in Western Europe and North America. In the eighteenth century, when the term came into use, "statistics" referred to a descriptive analysis of the situation of a political state-its people, resources, and social life. In the early nineteenth century, the term came to carry the specific connotation of a quantitative description and analysis of the various aspects of a state or other social or natural phenomenon. Statistical concept and statistical thinking enable them to:-

Solve problems in almost any domain, Support their decisions, Reduce guesswork.

DIVISIONS IN STATISTICS

Statistics

Descriptive Statistics

Inferential Statistics

Collecting Organizing Summarizing Presenting

Making Inference Hypothesis Testing Determining

relationship Marking Predictions

FUNCTIONS OF STATISTICS

Statistics is used for various purposes. It’s used to simplify mass data and to make comparisons easier. It’s also used to bring out trends and tendencies in the data as well as the hidden relations between variables. All this helps to make decision making much easier. Let us look at each function of statistics in detail.

1) Statistics simplifies mass data- the use of statistical concepts helps in simplification of complex data. Using statistical concept, the manager can make decisions more easily. The statistical methods help in reducing the complexity of the data and consequently in the understanding of any huge mass of data.

2) Statistics makes comparison easier- Without using statistical methods and concepts, collection of data and comparison can’t be done easily. Statistics helps us to compare data collected from different sources. Grand totals, measures of central tendency, measures of dispersion, graphs and diagrams, coefficient of correlation all provide ample scopes for comparison.

3) Statistics brings out trends and tendencies in the data- After data is collected, it’s easy to analyse the trend and tendencies in the data by using the various concepts of Statistics.

4) Statistics bring out the hidden relations between variables- Statistical analysis helps in drawing inferences on data. Statistical analysis brings out the hidden relations between variables.

5) Decision making power becomes easier- With the proper application of Statistics and statistical software packages on the collected data, managers can take effective decisions, which can increase the profit in a business.