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Unit 1: Statistics




          6.   “Statistics or statistical method may be defined as collection, presentation, analysis and  Notes
               interpretation of numerical data.”                   — Croxton and Cowden
               This is a simple and comprehensive definition of statistics which implies that statistics is
               a scientific method.
          7.   “Statistics is a science which deals with collection, classification and tabulation of numerical
               facts as the basis for the explanation, description and comparison of phenomena.”
                                                                                — Lovitt
          8.   “Statistics is the science which deals with the methods of collecting, classifying, presenting,
               comparing and interpreting numerical data collected to throw some light on any sphere
               of enquiry.”                                                  — Seligman
          The definitions given by Lovitt  and Seligman are  similar to  the definition  of Croxton  and
          Cowden except that they regard statistics as a science while Croxton and Cowden has termed it
          as a scientific method.

          With the development of the subject of statistics, the definitions of statistics given above have
          also become outdated. In the last few decades the discipline of drawing conclusions and making
          decisions under uncertainty has grown which is proving to be very helpful to decision makers,
          particularly in the field of business. Although, various definitions have been given which include
          this aspect of statistics also, we shall now give a definition of statistics, given by Spiegel, to
          reflect this new dimension of statistics.
          9.   “Statistics  is concerned  with scientific  method for collecting, organising,  summarising,
               presenting and analysing data as well as drawing valid conclusions and making reasonable
               decisions on the basis of such analysis.”

          On the basis of the above definitions we can say that  statistics, in singular sense, is a science
          which consists  of various  statistical methods that can  be used for collection,  classification,
          presentation and analysis of data relating to social, political, natural, economical, business or
          any other phenomena. The results of the analysis can be used further to draw valid conclusions
          and to make reasonable decisions in the face of uncertainty.

          1.1.1 Statistics as a Scientific Method

          We have seen above that, statistics as a non-experimental science can  be used to study and
          analyse various problems of social sciences. It may, however, be pointed out that there may be
          situations even in natural sciences, where conducting of an experiment under hundred per cent
          controlled conditions  is rather impossible. Statistics,  under such conditions, finds its use in
          natural sciences, like physics, chemistry, etc.
          In view of the uses of statistics in almost all the disciplines of natural as well as social sciences,
          it will be more appropriate to regard it as a scientific method rather than a science. Statistics as
          a scientific method can be divided into the following two categories:
          1.   Theoretical Statistics: Theoretical statistics can be further sub-divided into the following
               three categories:
               (a)  Descriptive  Statistics:  All  those  methods  which  are  used  for  the  collection,
                    classification, tabulation, diagrammatic presentation of data and  the methods  of
                    calculating average, dispersion, correlation and regression, index numbers,  etc., are
                    included in descriptive statistics.








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