STATISTICS: Meaning & Uses

STATISTICS: Meaning & Uses

The practice or science of collecting and analysing numerical data in large quantities, especially for the purpose of inferring proportions in a whole from those in a representative sample. Statistics is branch of mathematics concerned with  C²IA  i.e Collection, Classification, Interpretation & Analysis of numerical facts, for drawing inferences on the basis of their quantifiable likelihood (probability).It can interpret aggregates of data too large to be intelligible by ordinary observation because such data (unlike individual quantities) tend to behave in regular, predictable manner. It is subdivided into descriptive statistics and inferential statistics.

USES OF STATISTICS:

Statistics plays a vital role in every fields of human activity. It  has important role in determining the existing position of per capita income, unemployment, population growth rate, housing, schooling medical facilities etc in a country. Now statistics holds a central position in almost every field like Industry, Commerce, Trade, Physics, Chemistry, Economics, Mathematics, Biology, Botany, Psychology, Astronomy etc, so application of statistics is very wide. Now we discuss some important fields in which statistics is commonly applied.

1.      In the field of  Business:

Statistics play an important role in business. A successful businessman must be very quick and accurate in decision making. He knows that what his customers wants, he should therefore, know what to produce and sell and in what quantities. Statistics helps businessman to plan production according to the taste of the costumers, the quality of the products can also be checked more efficiently by using statistical methods. So all the activities of the businessman based on statistical information. He can make correct decision about the location of business, marketing of the products, financial resources etc.

2.      In the field of  Economics:

Statistics play an important role in economics. Economics largely depends upon statistics. National income accounts are multipurpose indicators for the economists and administrators. Statistical methods are used for preparation of these accounts. In economics research statistical methods are used for collecting and analysis the data and testing hypothesis. The relationship between supply and demands is studies by statistical methods, the imports and exports, the inflation rate, the per capita income are the problems which require good knowledge of statistics.

3.      In the field of  Banking:

Statistics play an important role in banking. The banks make use of statistics for a number of purposes. The banks work on the principle that all the people who deposit their money with the banks do not withdraw it at the same time. The bank earns profits out of these deposits by lending to others on interest. The bankers use statistical approaches based on probability to estimate the numbers of depositors and their claims for a certain day.

4.      In the field of  State Management (Administration):

Statistics is essential for a country. Different policies of the government are based on statistics. Statistical data are now widely used in taking all administrative decisions. Suppose if the government wants to revise the pay scales of employees in view of an increase in the living cost, statistical methods will be used to determine the rise in the cost of living. Preparation of federal and provincial government budgets mainly depends upon statistics because it helps in estimating the expected expenditures and revenue from different sources. So statistics are the eyes of administration of the state.

5.      In the field of  Accounting and Auditing:

Accounting is impossible without exactness. But for decision making purpose, so much precision is not essential the decision may be taken on the basis of approximation, know as statistics. The correction of the values of current asserts is made on the basis of the purchasing power of money or the current value of it.

In auditing sampling techniques are commonly used. An auditor determines the sample size of the book to be audited on the basis of error.

6.      In the field of  Natural and Social Sciences:

Statistics plays a vital role in almost all the natural and social sciences. Statistical methods are commonly used for analyzing the experiments results, testing their significance in Biology, Physics, Chemistry, Mathematics, Meteorology, Research chambers of commerce, Sociology, Business, Public Administration, Communication and Information Technology etc.

7.      In the field of  Astronomy:

Astronomy is one of the oldest branches of statistical study; it deals with the measurement of distance, sizes, masses and densities of heavenly bodies by means of observations. During these measurements errors are unavoidable so most probable measurements are founded by using statistical methods.

Example: This distance of moon from the earth is measured. Since old days the astronomers have been statistical methods like method of least squares for finding the movements of stars.

8.      In the field of  Research: Statistics plays a vital role in Researches. For example it can used as in data collection, analysis. Interpretation , explanation and presentation. Use of statistics will guide researchers in research for proper characterization, summarization. Presentation,  interpretation of the result of research. Statistics provides a platform to  for research as to ; How to go about our research, either to consider a sample or the whole population, the Techniques to use in data collection and observation, how to go about the data description by the using of measures of central tendency like Mean , Median, Mode etc. To finding the test by using T test,  Chi square, ANOVA etc.