UNIT I

INTRODUCTION TO STATISTICS
Objectives
The Objectives are to help to understand:
The meaning of Statistics
Origin of statistics
Growth of statistics
Function of statistics
Scope of statistics
Value of statistics
Basic concepts of statistics.
Structure
1.1 Introduction
1.2 Origin of statistics
1.3 Definitions of statistics
1.4 Functions of statistics
1.5 Scope of statistics
1.6 Trust of statistics
1.7 Population and sample
1.8 Scales on measurement
1.9 Quantitative data
1.10 Qualitative data
1.11 Methods of data Collection
1.12 Classification of data
1.13 Summary
1.14 Key words
1.15 Answer to check your progress
1.16 Further readings

1.1 INTRODUCTION
First of all, we welcome you for studying the science statistics. The most
successful man in life is one who makes the best decision, based on the available
information. Thus, you have embarked on the study which can help to take a decision
for bright future.
This course has been designed primarily to learn the subjects and thereby the
students can aspire to take up professions that demand skills and techniques in
statistics.
1.2 ORIGIN OF STATISTICS
Statistics is a tool of decision making in real life problems. It originated more
than 2000 years ago, but it was recognized as separate discipline from 1940 in India.
From then to till now, statistics is evolving as a versatile powerful and indispensable
instrument for investigation in all fields of real life problems. It provides a wide
Variety of analytical tools. We have reached a stage where no empirical Science can
afford to ignore the science of statistics since the diagnosis of pattern of recognition
can be achieved through the science of Statistics.
Statistics conveys a variety of meanings to people. Statistics is a method of
obtaining and analysing data in order to take decisions on them.
In India, during the period of Chandra Gupta Maurya there was an efficient
system of collecting official and administrative statistics. During Akbars reign
(1556-1605AD) maintained good records of land and agricultural
statistics.
Statistical surveys were also conducted during his reign.
In Germany, the systematic collection of official statistics originated towards
the end of the 18th century.
Sir Ronald A. Fisher known as Father of Statistics placed Statistics on a very
sound footing by applying it to various diversified fields. His contributions in
statistics led to a very responsible position of statistics among science.
Professor C.R. Rao is a living Indian legend, whose career spans the history of
modern statistics: He is considered by many to be the greatest living statistician in the
world to day. He has derived the most fruitful years of his life between India and
America.
Check your progress 1:
State the names of some Indian statisticians.

1.3 DEFINITIONS OF STATISTICS

There are many definitions of the term statistics. Some authors have defined
statistics as statistical data (plural sense) where as others as statistical methods
(singular sense).
Statistics as statistical Data:
Yule and Kendall state that By statistics we mean quantitative data affected to a
marked extent by multiplicity of causes.
Yule and Kendall definition points out the following characteristics:
Statistics are aggregates of facts
Statistics are affected to a marked extent by multiplicity of causes
Statistics are numerically expressed
Statistics are enumerated or estimated according to reasonable standards of
accuracy.
Statistics are collected in a systematic manner.
Statistics are collected for a pre-determined purpose and
Statistics should be placed in relation to each other.
Statistics as statistical methods:
One of the best definitions of statistics is given by Croxton and Cowden. They
define statistics as the science which deals with collection, analysis and interpretation
of numerical data. This definition points out the scientific ways of:
Data collection
Data presentation
Data analysis and
Data interpretation
Statistics as statistical models and methods:
Statistics is an imposing form of Mathematics. The usage of statistical
methods has been briskly expanding in the late 20th century, because of the application
value of the statistical models and methods. Statistical models and methods have
greater implication in the applications of many inter-disciplinary sciences.
Santhakumaran defines Statistics is the science of Winding and Twisting
network connecting Mathematics, Scientific Philosophy, Computer Software and

other intellectual sources of the millennium. (A. Santhakumaran, 26 th August 1997,

THE HINDU).
This definition reveals that statisticians work to translate real life problems
into Mathematical models by using assumptions or axioms or principle. Then they
derive exact solutions by their knowledge and thereby intellectually validate the
results and express their merits in non- mathematical form which make for the
consistency of the real life problems.
Check your progress 2:
State a modern definition of statistic:

1.4 FUNCTIONS OF STATISTICS

The following are the functions of the statistics.
(1) It presents facts in a definite form.
(2) It condenses mass of statistical data.
(3) It facilitates comparison
(4) It helps in formulating and testing hypotheses
(5) It helps in predicting the feature
(6) It helps in the formulation of suitable policies.
1.5 SCOPE OF STATISTICS
The scope of statistics is vast and ever-expending. Statistics is a tool of all
sciences indispensable to research and intelligent judgment and has become a
recognized discipline in its own right. In fact the greatest victory of mankind of the
21st century that of staying number of months on the space and safely return back to
the earth would not have been a success in the absence of statistical help. The
applications of statistics are so numerous that is often stated
Statistics is what statisticians do
Statistics and Government:
Since ancient times the ruling kings have relied heavily on statistics in forming
suitable military and fiscal policies. In Indian Government there is a separate
Department and ministry for statistics. Most of the statistics such as that of crimes,
Military, Population, Taxes, etc, that were collected by them are by-product of
administrative activity. Statistical data at of great help in promoting human welfare
and forming suitable policies. The departments of the Government whether they be
Finance, Transport, Defence, Railways, Food, Commerce, Post and Telegraph or
Agriculture depend heavily on factual data for their efficient functioning.

With ever-increasing competition, the problems of the market enterprises are

becoming complex and they are using more and more statistics in decision-making.
Professor P.C. Mahalanobis, the renowned statistician observed that statistics
as a key technology is not merely an operational tool for profitable business, but a
powerful accelerator and catalyst for economic growth. This proves the significance
of statistics in business.
Business activities can he broadly grouped under the following heads:
Production
Sale
Purchase
Finance
Market
Product research
Quality Management
With the help of statistical models and methods in respect of each of these areas
abundant qualitative information can be of obtained which can be of immense use in
formulating suitable polices.
Statistics and Economics
Professor Alfred Marshall, the renowned economist observed that Statistics
are the straw out of which I, like every other economist, have to make bricks.
Economics is concerned with the production and distribution of wealth as well as with
the complex institutional set-up connected with the consumption, savings and
investment of income. Gross Domestic Product growth rate and inflation rate are
measured on the basis of statistical data. Thus Statistics is of immense help in the
proper understanding of the economic problems.
Statistics and Research:
Statistics is indispensable in research work. Most of the advancement in
knowledge has taken place because of experiments conducted with the help of
statistical models and methods. It is possible to understand the meaning and
implication of the research findings in various disciplines of knowledge having at
least a speaking acquaintance with the subject of statistics.
Statistical applications are not intended to be exhaustive, but they simply
suggest the diversity of applications of the understanding models, method and ideas of
statistics. Statistics is essential for a good citizen. Thus statistical thinking will one
day be as necessary for efficient citizenship as the ability to read and write.

Check your progress 3:

Write down below the scope of statistics in insurance:

1.6 TRUST OF STATISTICS:

The usefulness of statistics in any field impression should be carried that
statistics always provides the correct solution to problems. If the data are
scientifically collected and carefully interpreted, then these always bring to correct
conclusions.
For example, seven students and a master want to cross a river from one side
to another side. The students are not able to swim to cross the river. The master
measures average height of the students which is 55. He also measures the depth of
the river from one side to other side in 10 places 2; 25; 4; 55; 6; 65; 10; 25;
15 and 1 which has 415 average depth of the river. The master takes a decision to
cross the river on foot, since the average height of the students is greater than the
average depth of the river. The students fail to cross the river, since some place the
depth of the river is more then 55. The master is not happy with his decision. The
master has succeeded in taking a decision because the minimum height of the students
is greater than the maximum depth of the river. If a statistician has ability, skill and
knowledge, he can be inventive as innovation constitutes intellect, then the science of
statistics actually gives the trust for taking the correct decision.
Check your progress 4:
List out the limitation of statistics, if any.

1.7 POPULATION AND SAMPLE

Data constitute the foundation for statistical analysis. Statistical data required
to carry out their activities efficiently and effectively. The rate at which statistical
data are being collected is staggering and is primarily due to the realization that better
decisions are possible with more information. When statistical data are collected and
analysed, it is usually in the context of populations and their characteristics.
Population is the totality of units under study and population characteristic is an
attribute of a population unit. If we are interested in the salaries of workers in a
particular industry, then the population is the totality of these workers and the
characteristic of interest is each workers salary. In general a population unit may have
one or more characteristics of interest in a particular study. The required data in a

study may be obtained either through a survey or an experiment. Population may be

finite or infinite.
A complete enumeration of all items in the population is known as a census. A
finite subset of enumeration of items form a population is called a sample. If the
population is very large or infinite, complete enumeration is impracticable. Further, if
the units are destroyed in the course of inspection which belong to finite or infinite
population, like life time of a machine, crackers etc. complete enumeration is not at
all practicable. Even if the population is finite, complete enumeration is not possible
because a multiplicity of causes, administrative, convenience, financial implications
and limited time factor etc. The number of individuals in a population is called
population size.
1.8 SCALES ON MEASUREMENT:
Statistical data are measured scales on measurements of characteristics or
attributes. The characteristics or attributes of objects are associated by empirical
relations. The empirical relations make a calibre to measure the characteristics or
attribute. The way of defining such empirical relations for the characteristics or
attributes is known as measurement.
There are three characteristics of the real numbers which are used to quantify
the degree of possession of the characteristics by the objects. They are order, distance
and origin.
Order means characteristics are arranged in order of numbers.
Distance means the difference between the magnitudes of numbers. The
assignment of numbers to object should be magnitude only but not direction (i.e.,
without the sign).
Origin means the real number system has unique origin zero. The assignment
of numbers to objects should be such that the relations between numbers correspond
to the real number system relations between objects.
Types of Scale:
There are four levels of scales of measurement. They are
1. Nominal Scale
2. Ordinal Scale
3. Interval Scale and
4. Ratio Scale
1.8.1 Nominal Scale:
Nominal scale is a system of classifying quantitative or descriptive data as
groups or classes. For example, if we want to categorise male and female

respondents, we could use a nominal scale of 1 for male and 2 for female But 1 and 2
in this case do not represent any order or distance. They are simply used as labels.
One can use the nominal scale to indicate categories of any variable which is not to be
given a numerical significance. For example, demographic variables such as religion,
education level, languages spoken, and other variables like magazines read, TV shows
watched can be nominally scaled.
1.8.2 Ordinal Scale:
The ordinal scale places the observations in order. The use of an ordinal scale
implies a statement of greater than or less than symbol (> or <) which may be used to
designate the qualitiative data. For example Rama is greater than Arun or Sita is less
than Ramya.
The difference between nominal and ordinal scale is that the nominal scale
incorporates the relation of equivalence only while the ordinal scale incorporates the
relation of equivalence as well as of greater than or lesser than.
1.8.3 Interval Scale:
Interval scale measures the observations with respect to the distance or degree
of difference between all the observations. In interval scale zero is the arbitrary
origin. For example temperature is measured on interval Scale. Celsius (Centigrade)
F 32
0 and Fahrenheit 0 are different for the two scales. Linear transformation C =
18
of valves of an interval scale remain unchanged. In Fahrenheit 0 degree is equal to
17.78 degree Celsius.
Check your progress 5:
Give below the differences between interval scale and ordinal scale.

1.8.4 Ratio Scale:

Ratio Scale has all the characteristics of an interval scale and in addition it has
a true point as its origin zero. The ratio of any two scale points is independent of the
unit of measurement; measures of physical dimensions such as weight, height,
distance etc. are examples of ratio scale.
1.9 QUANTITATIVE DATA
Physical measurement exists in the physical world. In is concerned work
dimension, i.e., size, weight, length, area, volume etc. Thus characteristics are
measured by a unit of measurement. 1000 grams = 1kilogram, 16 ounces = 1 pound
etc. are examples of quantitative data.

Some important properties of Qualitative data are:

1. Zero point is its true origin. In quantitative measurement units can be referred
to a zero point 5 feet means 5 feet above zero.
2. Quantitative measurement has implied assumption that units bearing the same
must have the same value. For example 10 inches mean twice as much as 5
inches.
3. Quantitative measurement is complete. Length of the entire piece of cloth can
be measured. Entire sugar in a shop can be measured etc as the examples of
quantitative measurement.
4. Quantitative measurement is absolute and
meaning.

implies that it has a definite

5. Quantitative measurement is objective. Subjective evaluation is not involved.

1.10 QUANTITATIVE DATA
A Characteristic that cannot be measured by a unit of measurement, is known
as qualitative data i.e., Qualitative measurement is indefinite and not precise. Colour
of a student, Beauty of flowers, Honesty of a man are some examples of qualitative
characteristics.
Some important properties of qualitative data are:
1. Qualitative Characteristics are no definite units of measurement.
2. Qualitative Characteristics are classified as possess the character or not
possess the character.
3. There is no zero point in qualitative measurement.
4. Measurement is relative to some standard or norm.
Check your progress 6:
State below some units of measurement of qualitative characteristics.

Check your progress 7:

Mention some qualitative characteristics.

1.11 METHOD OF DATA COLLECTION

Data processing and planning are playing a vital role in the analysis of
statistics. Utmost care must be taken while collecting data because data constitute the
foundation on which the structure of statistical analysis is built. The results obtained
from analysis are properly interpreted and policy decisions are taken. If the data are
inaccurate and inadequate the whole analysis may be faulty and decisions taken
misleading. Data may be obtained either from the primary source or the secondary
source.
1.11.1 Primary data:
Data originally collected for the first time in an investigation are known as
primary data. Such data are original in character. Data obtained in a population
census by the office of the Registrar General and Census Commissioner, Ministry of
Home affairs, Poll survey conducted by Centre for the Study of Developing
Societies (CSDS) are the examples of primary data.
Primary data are preferable to make use of the primary source wherever
possible for the following reasons:
The secondary source may contain mistakes due to errors in transcription
made when the figures were copied from the primary source.
The primary source frequently includes definitions of terms and units used.
Primary data are the actual information which are received by researcher for study
from the actual field of research. Primary data are attained by means of
Questionnaires and Schedules. In some fields primary data are collected through
interview and observation methods. Care should be taken to collect the primary data.
1.11.2 Observation method
The chief primary source of information concerning any phenomenon is direct
observation. This method requires that the researcher should personally and directly
observe the conditions and incidents of his field of study. Direct observation is the
most reliable method for gathering imformation concerning the life, status, conduct,
behaviour, customs traditions, etc. In this observation, the observer should be
absolutely detached and objective in gathering facts. Direct observation has been
classified into anticipant observation and non-participant observation. In participant
observation the observer lives in the groups or community as a member of it and
participate in their life. On the contrary in non-participant observation, the researcher
does not participate in the group life but only observes as on external spectator.
1.11.3 Interview method
Under this method of collecting data there is a face-to-face contact with the
persons from whom the information is to be obtained. The interviewer asks them
questions pertaining to the survey and collects the desired information. If a person
wants to collect data about the wages of workers in Salem, then he contacts the

10

workers in the city and obtain the desired information. The information thus obtained
is first hand or original in character.
1.11.4 Indirect oral Investigation:
In this method of collecting data, the investigator contacts the respondents or
witnesses capable of supplying the necessary information. This method is adopted in
those cases where the information obtained is of a complex nature and the
respondents are not inclined to respond if approached directly. The success of this
method of collecting the primay data depends on the following:
The ability of the interviewers to draw out the information from witnesses by
means of appropriate questions and cross-examination.
The honesty of the interviewers who are collecting the primary data.
1.11.5 Information from correspondents
Under this method, the investigator appoints local agents or correspondents in
different places to collect information. These correspondents collect and transmit the
information to the central office where the data are processed. News paper agencies
adopt this method. For example, in the construction of wholesale price index
numbers regular information is obtained from correspondents appointed in different
areas. The special advantage of this method is that it is cheap and appropriate for
extensive investigation. However, this method of collecting information may not
ensure accurate results because of the personal prejudice and bias of the
correspondents.
1.11.6 Mailed Questionnaire method
Mailed questionnaire method consists a list of questions pertaining to the
survey (known as questionnaire). The questions are prepared and sent to various
respondents by post or messengers. The questions have also space for answers. A
request is made to the respondents through a covering letter to fill up the
questionnaire and send it back within a specified time. The advantages of the method
of collecting data can be easily adopted where the field of investigation is very fast
and it is also cheap provided the respondents respond in time. The main setback of
this method is that it can be adopted only literate respondents. The other limitations
are:
It involves uncertainty about the response
Co-operation on the part of respondents may be difficult to presume.
The information supplied by the informants may not be correct.
It may be difficult to verify the accuracy.
1.11.7 Interview schedule
Interview schedule method of collecting information is that schedules are send
to respondents through interviewers. The interviewers contact the respondents, get

11

replies to the questions contained in a schedule and fill them in their own hand writing
in the questionnaire.
The main difference between the mailed questionnaire and the interview
schedule is that the questionnaire is sent to the respondents by post whereas in the
interview schedule method the interviewers carry the schedule directly to the
respondents. This method is free from most of the limitations of the mailed
questionnaire method except that there is a little non-response of prestige issues when
the interviewers go personally to obtain the information.
The main advantages of this method are:
It can be adopted in the case of illiterate people.
The information received under this method is more reliable as compared to
the other methods of collecting information.
The success of the method depends on the well trained expertised and skilled
inerviewers. This method is quite popularly used in practice because of the personal
contact of the interviewers.
1.11.8 Drafting the Questionnaire
Drafting the questionnaire is an art. The success depends largely on the skill
and insight with which the lists of questions are formulated. Questions must be
unequivocal and easily intelligible. The following considerations should be kept in
mind while drafting a questionnaire.
The person conducting the survey must introduce himself and state the
objective of the survey.
The precise number of questions to be included would depend on the object
and scope of the investigation.
The questions must be arranged in a logical order so as to get a spontaneous
reply from the respondents.
The questions should be short and simple to understand.
Personal questions should be avoided
The questionnaire should provide necessary instructions to the respondents.
Questions should be of objective types which obtain uniformity of answers
from the respondents.
Open questions should be minimised
A questionnaire should be made to look as attractive as possible
Questions requiring calculations should be avoided.
The questionnaire should be pre-tested with a group before mailing it out.

12

 One or more cross-checks should be incorporated into the questionnaire to

determine the respondent is conscientiously answering the questions.
Methods for tabulating the results should be determined before the final draft
of the questionnaire is made.
1.11.9 Pre-testing the Questionnaire
Before finalizing the questionnaire, it is advisable to pre-test the questionnaire.
There are many advantages of pre-testing the questionnaire.
The researcher can find out what are the drawbacks of the questionnaire, i.e.,
which questions should be deleted and which more should be added.
Respondents non-response of the questions give an idea to form the changes in
the questions.
Greater cooperation of the informants can be secured.
The work of pre-testing the questionnaire must be done with utmost care.
Otherwise unnecessary and unwanted changes may be introduced.
1.11.10 A specimen Questionnaire
The following a specimen questionnaire incorporates the quality of a good
questionnaire. The questionnaire relates to Customers Buying Behaviour of Consumer
Durables.
I. Personal Information
Please tick or cross in the appropriate box:
a)Your place of residence is a
i) City
ii) Town
iii) Village
b) The house you are residing in is
i) owned by you/your family
ii) a rented house
iii) a house provided by employer
c) Sex
i) Male

13

ii) Female
d) Your age: __________years
e) Educational Qualification
i) Illiterate
ii) upto higher secondary level
iii) upto UG degree level
iv) upto PG degree level
v) Professional level
f) Occupational status
i) House wife
ii) Student
iii) Daily wage
iv) Petty traders/Shop owners
v) Business / Industrialists
vi) Self Employed professional
vii) Service
viii) Former
g) Your monthly income: Rs._____________
h) Monthly income from the other sources: Rs.__________________________
i) Total number of members in your family
i) Male:___________
ii) Female:_____________
j) Type of your family
i) Joint family
ii) Nuclear family
k) Marital status

14

i) Single
ii) Married

l) Community: OC/BE/MBC/SC/ST
m) Religion: Hindu/Christian/Muslim
n) Nature of occupation
i) Traditional
ii) New
II Information Search
a) Why did you gather information?
Strongly Agree-SA, Agree-A, Undecided-UD, Disagree-DA, Strongly Disagree-SDA
(Please tick the appropriate box)
i) ________because it involves high investment
SA A
UD DA

SDA

ii)________because it is purchased infrequently

SA

UD

DA

SDA

iii)_________ because of fear of making wrong choice

SA
iv) _________to compare price
SA

UD

DA

SDA

UD

DA

SDA

UD

DA

SDA

v)___________ to compare features

SA

vi) _________to know the availability of product

SA

UD

DA

SDA

b) How did you gather information?

(Give your opinion in terms of 7 points scale please tick the appropriate box)
i) ________opinion of friends
1 2
ii)_______opinion of neighbours
1 2

15

iii)_____ opinion of work companions

1 2

vii)_________news paper advertisement

1 2
3
4

viii) _________magazine advertisement

1 2
3
4

ix)________ cinema advertisement

1 2
3

x) _________television advertisement
1 2
3

xi) _________radio advertisement

1 2
3

iv) _______consulting technical experts

1 2
3
4
v) __________discussion with family
1 2
3
4
vi) _______shop display
1 2

xii) _______ recommendation of the shop keeper/salesman

1 2
3
4
5
6 7
xiii)_______door-door propaganda
1 2
3

xiv)________ gift offers

1 2

1 2

xv) ________exhibition

1.11.11 Sources of Secondary data

Secondary data can be compiled either from the published sources or from
unpublished sources.
Published sources: Relevant secondary data can be obtained from the following:

16

a) Various publications of International orginisation such as UNO and its

subsidiaries such as International Monetary Fund, International Finance
Corporation and United Nations Educational Scientific and Cultural
orginisation ( UNESCO)
b) Centeral Government Orginisations such as office of the Register General and
Census Commissioner of India, Control Statistical Organisation (CSO ),
National Sample Survey Organisation (NSSO), Directorate of Economics and
Statistic and so on.
Unpublished Sources: All statistic data are not published. They may be found in
diaries. Letters unpublished biographies and autobiographies etc.
Precautions in the use of secondary data
The next step in a statistical invertigation is to edit the data, i.e., to scrutinize
the data. The task of editing is a highly specialised one and requires great care and
attention. While using the secondary data one must take care on the following:
Whether the data are suitable for the purpose of investigation in view.
Whether the data are adequate for the investigation
Whether the data are reliable.
1.12 CLASSIFICATION OF DATA
The data have been collected by what ever method, first step is to prepare
these data to analyse. Individual observations are called row data. When there are a
large number of individual items, it is really difficult to know the nature of the data.
The objectives of classifying data are:
To condense the mass of data in such a manner that similarities and
dissimilarities can be readily apprehended.
To facilitate comparison
To pinpoint the most significant features of the data at a glance.
Classification is the process of arranging data into groups or classes according to
the common characteristics possessed by the individual items.
Types of classification:
The statistical data can be classified on the following four bases:
i) Geographical or Spartial classification
ii) Chronological classification
iii) Qualitative classification
iv) Quantitative classification
i) Geographical classification:

17

Geographical classification can be classified area-wise such as states, towns,

etc. Data off on public limited companies in Tamilnadu can be classified as
geographical classification.
Geographical classification city
Region

Number of companies

Chennai

100

Coimbatore

75

Trichy

40

Salem

10

ii) Chronological Classification:

When data are observed over a period of time the type of classification is
known as chronological classification.
Population of India
Year

Population
(in crores)

2001

100

2002

102

2003

108

2004

110

iii) Qualitative classification:

Data are classified on the basis of some attribute or quality such as sex, colour,
honest, etc. Then the classification is known as qualitative classification.
Gender of population
Gender

Number of Students

Male

12000

Female

12050

Total

24050

Qualitative classification can be of two types. They are simple classification

and manifold classification.

18

When are attribute is studied, two classes are formed, one possessing the
attribute and the other not possessing the attribute. This type of classification is
known as simple classification.

iv) Quantitative classification:

Quantitative classification refers to the classification of data according to some
characteristics that can be measured in terms of magnitudes such as height, weight,
salary, etc. For example the students of a university may be classified according to
height as follows:
University Students height
Height in cm

Number of Students

90 100

100

100 110

300

110 -120

500

120 -130

600

130 140

750

140 150

850

150 160

200

160 170

100

Note: Details of Quantitative classification are also given in unit-2.

Simple classification

19

We may classify population on the basis of sex, literacy employed and so on.
This type of classification is known as manifold classification.

Manifold Classification
1.13 SUMMARY
You have now some idea of what comes under the study of descriptive
statistics. The above illustrations have dealt with the basic concepts of descriptive
statistics. These basic concepts give the foundation to learn the science of statistics.
1.14 KEY WORDS:
Statistics:
The word statistics seems to have been derived from the Latin word
Status or the Italian word Statista or the German word Statistik each of which
means a Political State.
Data set: A collection of data is called data set.
Data point: A Single observation is known as data point.
Science: A system study of knowledge provided the facts are existing in the world.
1.15 ANSWER TO CHECK YOUR PROGRESS:
1. Sir Ronald A. Fisher, Prof. C.R. Rao.
2. Santhakumaran defines, Statistics is the science of winding and twisting
network connecting Mathematics, Scientific Philosophy, computer Software
and other intellectual sources of the Millennium.
3. In Insurance, the sampling techniques are commonly followed. For making
various insurance Techniques and Methods, so much precision is essential and
the life of every insured persons are generally valued on the basis of their.
Insurance policies claimed accordingly. Various Insurance issues and policies
are valued according to their incomes, ages, family etc., thus, it gives various
keys and ideas to get the clear solution based on Insurance Policies.
4. (i) Statistics does not deal with individual items.

20

(ii) Statistics deals with quantitative data only.

(iii) Statistics may mislead to wrong conclusion in the absence of details
(iv) Statistical laws are true only on averages.
(v) Statistics does not reveal the entire story.
(vi) It should be uniform and homogeneous.
(vii) It is liable to be misused.
5. The difference between nominal and ordinal scale is that the nominal scale
incorporates the relation of equivalence only while the ordinal scale
incorporates the relation of equivalence as well as of greater than or lesser
than.
6. Physical measurement exists I the physical world. It is concerned with
dimension. i.e., size weight, length, area volume etc. Thus characteristics are
measured by a unit of measurement. 1000 grams =1 kilogram, 16 ounces =1
pound etc., are examples of quantitative data.
7. I. Qualitative Characteristics are no definite units of measurement.
II. Qualitative Characteristics are classified as possess the character or not
possess the character.
III. There is no zero point in qualitative measurement.
IV. Measurement is relative to some standard or norm.
QUESTIONS:
1. Define a population and a sample.
2. Explain qualitative and qualitative data.
3. What is nominal scale and ordinal scale?
4. Distinguish between qualitative and qualitative data.
5. Explain the characteristics Quantitative data.
6. Explain the different types of scales.
7. Describe the scope of statistics.
8. State the functions of statistics.
9. Statistic is the sciences Explain.
10. Define the term statistics.
11. Draw a blank table to represent the students of a University according to their
faculty (Arts, Science, Commerce, and others), age (16-20, 21-25 and others),
sex and residence (Hostelers and Day-Scholars)
FURTHER READINGS
Snedecor, G.W and W .G Cochran, Statistical Methods.
Gupta, S. G. and V.K. Kapoor,

21

 Fundamentals of Mathematical Statistics

Santhakumaran, A Probability Models and their Parametric Estimation.

22