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 • Making Inference

• Organizing • Hypothesis Testing
• Summarizin • Determining
g 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.