Page 7 - DECO504_STATISTICAL_METHODS_IN_ECONOMICS_ENGLISH

Unit 1: Definition of Statistics, Importance and Scope of Statistics and Its Limitations
Dilfraz Singh, LPU

Unit 1: Definition of Statistics, Importance and Scope Notes

of Statistics and Its Limitations

CONTENTS
Objectives
Introduction
1.1 Definition of Statistics
1.2 Importance and Scope of Statistics
1.3 Limitations of Statistics
1.4 Summary
1.5 Key-Words
1.6 Review Questions
1.7 Further Readings

Objectives

After reading this unit students will be able to:
• Know the Definition of Statistics.
• Discuss the Importance and Scope of Statistics.
• Explain the Limitations of Statistics
Introduction

In general sense the word Statistics means facts and figures of a particular phenomenon—Under
reference in numerical numbers. In the traditional period the scope of Statistics was very much limited
to the collection of facts and figures pertaining to the age-wise and sets-wise distribution of population,
wealth etc. But now-a-days we can say that Statistics constitutes an integral part of every scientific
and economic inquiry: Social and economic studies without Statistics are useless. Statistics thus play
a vital role and as Tippet has rightly remarked, “It affects everybody and touches life at many points.”
1.1 Definition of Statistics

It has been observed that the word ‘Statistics’ comes from Latin word ‘Status’ which means Political
State. It has also been believed that the word Statistics comes from Italian word ‘Stato’. This word
was used in the fifteenth century for the ‘State’ in actual practice these words were used for Political
State or Stateman’s art.
Now-a-days Statisticians use statistics both in singular and plural sense. In the singular sense the
term Statistics is associated with “A body of methods for making decisions when there is uncertainty
arising from incompleteness or the instability of the information available for making such decisions.”
In its plural sense Statistics refers to numerical Statements of facts such as per capita income, population
etc. Thus, some authorities have defined Statistics as Statical data (Plural sense) whereas other as
Statistical method (Singular sense). According to Oxford Concise Dictionary, “Statistics—(as treated
as plural): numerical facts, systematically collected, as Statistics of population, crime etc. (treated as
singular): Science of collecting, classifying and using Statistics.”

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