Chp-16 ~ Definitions, Scope, Importance and Limitations of Statistics

Question 1

In what senses is statistics defined in?

Answer 1

Statistics is defined in two senses:
1. Statistics as Numerical Facts or Statistical Data
(plural sense - numerical facts or statistical data)
2. Statistics as Statistical Methods (singular sense - collection, classification, presentation, description, analysis and interpretation)

Question 2

What is the plural definition of statistics?

Answer 2

In the plural sense, Horace Secrist has defined statistics as, “Aggregates of facts affected to a marked extent by 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”.

Question 3

What are the characteristics of the plural definition of statistics?

Answer 3

1. Statistics are aggregates of facts.
2. Statistics are numerically expressed
3. Statistics data is affects by multiplicity of causes
4. Statistics must be enumerated or estimated according to reasonable standards of accuracy
5. Statistics are collected in a systematic manner.
6. Statistics are collected for a predetermined purpose.
7. Statistics are placed in relation to each other.

Question 4

What is the singular definition of statistics?

Answer 4

According to Croxton and Cowden, “Statistics may be defined as the collection, presentation, analysis and interpretation of numerical data.

Question 5

What is the importance of statistics?

Answer 5

1. Understanding the performance of the economy
2. Understanding the importance of various sectors of the economy
3. Studying the regional balances and imbalances
4. Studying the role of government in an economy and in the formulation of economic policies
5. Statistics for planned development
6. Better comprehension of the basic principles of Economics
7. Quantitative expression of economic problems
8. Statistics is helpful in research

Question 6

What are the limitations of statistics?

Answer 6

1. Statistics is not concerned with individual observation
2. Statistics does not analyse qualitative phenomenon
3. Statistical generalisations are true only on average
4. Improper use of statistics