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Quantitative Techniques – I




                    Notes          1.1 Meaning, Definition and Characteristics of Statistics

                                   The meaning of the word ‘Statistics’ is implied by the pattern of development of the subject.
                                   Since the subject originated with the collection of data and then, in later years, the techniques of
                                   analysis and interpretation were developed, the word ‘statistics’ has been used in both the plural
                                   and the singular sense. Statistics, in plural sense, means a set of numerical figures or data. In the
                                   singular sense, it represents a method of study and therefore, refers to statistical principles and
                                   methods developed for analysis and interpretation of data.

                                   Statistics has been defined in different ways by different  authors. These  definitions can  be
                                   broadly classified into  two categories.  In the  first category  are those  definitions which  lay
                                   emphasis on statistics as data whereas the definitions in second category emphasise statistics as
                                   a scientific method.

                                   Statistics used in the plural sense implies a set of numerical figures collected with reference to a
                                   certain problem under investigation.  It may be noted here that  any set of numerical figures
                                   cannot be regarded as statistics. There are certain characteristics which must be satisfied by a
                                   given set of numerical figures in order that they may be termed as statistics. Before giving these
                                   characteristics it will be advantageous to go through the definitions of statistics in the plural
                                   sense, given by noted scholars.
                                   1.  “Statistics are numerical facts in any department of enquiry placed in relation to each
                                       other.”                                                      – A.L. Bowley
                                       The main features of the above definition are:
                                       (i)  Statistics (or Data) implies numerical facts.

                                       (ii)  Numerical facts or figures are related to some enquiry or investigation.
                                       (iii)  Numerical facts should be capable of being arranged in relation to each other.
                                       On the basis of the above features we can say that data are those numerical facts which
                                       have been expressed as a set of numerical figures related to each other and to some area of
                                       enquiry or research. We may, however, note here that all the characteristics of data are not
                                       covered by the above definition.

                                   2.  “By statistics we mean quantitative data affected to a marked extent by multiplicity of
                                       causes.”                                                  — Yule & Kendall
                                       This definition covers two aspects, i.e., the data are quantitative and affected by a large
                                       number of causes.
                                   3.  “Statistics are classified facts respecting the conditions of the people in a state – especially
                                       those facts which can be stated in numbers or in tables of numbers or in any other tabular
                                       or classified arrangement.”                                    — Webster

                                   On the basis of the above definitions we can now state the following characteristics of statistics
                                   as data:
                                   1.  Statistics are numerical facts: In order that any set of facts can be called as statistics or data,
                                       it must be capable of being represented  numerically or quantitatively. Ordinarily,  the
                                       facts can  be classified  into two  categories: (a)  Facts that  are  measurable  and  can  be
                                       represented by numerical measurements. Measurement of heights of students in a college,
                                       income of persons in a locality, yield of wheat per acre in a certain district, etc.,  are
                                       examples of measurable facts. (b) Facts that are not measurable but we can feel the presence
                                       or absence of the characteristics. Honesty,  colour of  hair or eyes, beauty,  intelligence,
                                       smoking habit, etc., are examples of immeasurable facts. Statistics or data can be obtained
                                       in such cases also, by  counting the number of individuals in different categories.  For



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