Page 21 - DCOM203_DMGT204_QUANTITATIVE_TECHNIQUES_I

Quantitative Techniques – I

Notes Statistics is used to collect, present and analyze numerical figures on a scientific basis.
The use of various statistical methods help in presenting complex mass of data in a simplified
form so as to facilitate the process of comparison of characteristics in two or more situations.
Statistics also provide important techniques for the study of relationship between two or
more characteristics (or variable), in forecasting, testing of hypothesis, quality control,
decision-making, etc.
Statistics as a scientific method has its importance in almost all subjects of natural and
social sciences.
Statistics is an indispensable tool for the modern government to ensure efficient running
of its administration in addition to fulfillment of welfare objectives.
It is rather impossible to think of planning in the absence of statistics.
The importance of statistics is also increasing in modern business world.
Every business, whether big or small, uses statistics for analysing various business
situations, including the feasibility of launching a new business.
The limitations of statistics must always be kept in mind.
Statistical methods are applicable only if data can be expressed in terms of numerical
figures.
The results of analysis are applicable to groups of individuals or units and are true only on
average, etc.

1.6 Keywords

Applied Statistics: It consists of the application of statistical methods to practical problems.
Design of sample surveys,

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.
Inductive Statistics: It includes all those methods which are used to make generalisations about
a population on the basis of a sample. The techniques of forecasting are also included in inductive
statistics.
Inferential Statistics: It includes all those methods which are used to test certain hypotheses
regarding characteristics of a population.

National income accounting: The system of keeping the accounts of income and expenditure of
a country is known as national income accounting.
Numerical facts: Quantitative facts are capable of being represented in the form of numerical
figures and therefore, are also known as numerical facts.
Qualitative facts: These facts represent only the qualitative characteristics like honesty,
intelligence, colour of eyes, beauty, etc.

Quantitative facts: The facts which are capable to be expressed in forms of quantity/amount are
called.
Statistics : By statistics we mean aggregate of facts affected to a marked extent by a multiplicity
of causes,numerically expressed, enumerated or estimated according to a reasonable standard
of accuracy, collected in a systematic manner for a predetermined purpose and placed in relation
to each other.

16 LOVELY PROFESSIONAL UNIVERSITY