STATISTICS IN PLURAL SENSE<\/h4>\n\n\n\n
It refers to group of numerical data collected in a systematic manner with some definite objective. <\/p>\n\n\n\n
ACCORDING TO HORACE SACRIST<\/strong><\/p>\n\n\n\n \u201cStatistics is the aggregate of facts, affected to a marked extent by 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\u201d.<\/p>\n\n\n\n In singular sense, statistics refers to a science of all\nthose statistical methods and techniques which are related with various stages\nof statistical analysis.<\/p>\n\n\n\n ACCORDING TO CROXTON AND COWDEN<\/strong><\/p>\n\n\n\n \u201cStatistics may be defined as the science of collection,\npresentation, analysis, interpretation of numerical data.\u201d<\/p>\n\n\n\n Statistics<\/a> are numerical statement of facts capable of analysis and interpretation as well as study of the methods used in collection, organization, presentation, analysis and interpretation of numerical data.<\/p>\n\n\n\n It is often said that \u201cStatisticians\nis what Statisticians do\u201d<\/strong>. This explains the scope of statistics as very\nwide and extends extensively to the fields of Economics, Commerce, Trade,\nIndustry, Agriculture Physical sciences, bio-sciences, astronomy, psychology\nand many more.<\/p>\n\n\n\n The following points explain the scope of the statistics:<\/p>\n\n\n\n The word Statistics has been derived from the various words:<\/p>\n\n\n\n All these words means \u2018political state<\/strong>\u2019 or \u2018stateman\u2019s art<\/strong>\u2019. This means statistics has a deep relation with the state. In ancient times the statistics is considered as Science of kings<\/strong> or science of statecraft<\/strong> and is associated with:<\/p>\n\n\n\n But at present times, statistics is used by almost all\nministries or government departments like Finance Ministry, Agriculture\nMinistry, Defence Ministry, Industrial Ministry and many more.<\/p>\n\n\n\n EXAMPLE: <\/strong>Use of statistics for framing the policy of poverty alleviation, population control, inflation control, money supply etc.<\/p>\n\n\n\n Scope of Statistics include the area of Economics also. The\nstatistical data and methods of statistics are used for understanding the<\/p>\n\n\n\n Statistics is helpful in understanding the intensity of the\neconomic problem and deriving the solutions for the same on the basis of the\ndata available.<\/p>\n\n\n\n EXAMPLE<\/strong><\/p>\n\n\n\n Econometrics is one of the most recent fields of study\nconcerning economics. It combines the methods and techniques of Statistics and\nMathematics to build models for the analysis of economic problems and then\nprovides solution to all those problems.<\/p>\n\n\n\n EXAMPLE:<\/strong> In Econometrics Linear Regression models are formulated to analyze the effect of various determinants of demand on demand for a product.<\/p>\n\n\n\n Natural sciences are biology, Zoology, medicine, meteorology\netc. the statistics are helpful in the field of physical sciences as the\nexperiments conducted in this field are based upon the data collected with the\nhelp of descriptive statistics. Statistics is used both for analyzing data and\ndrawing conclusions.<\/p>\n\n\n\n Physical sciences involve Geography, geology, astronomy,\nPhysics etc. Descriptive statistics is used to present the complex phenomenon\nconcerning these branches of study in numerical form in a very simple way. The\nmethods of statistics are applies to analyze the data and to find conclusions.<\/p>\n\n\n\n EXAMPLE:<\/strong> In geography data concerning temperature level over the years can be collected and analyzed with the help of the statistics.<\/p>\n\n\n\n The statistical methods are also useful in the field of History,\nSociology, Education, Psychology etc. Various researches in this field are done\nwith the help of statistics. <\/p>\n\n\n\n EXAMPLE:<\/strong> In the field of politics, Statistics is used to evaluate the effects of the policies of the government.<\/p>\n\n\n\n In History, the record of all the past events is maintained\nwith the help of the descriptive statistics.<\/p>\n\n\n\n The Scope of statistics also includes the area of research. Any\nkind of research work is incomplete without the use of Statistics. It plays an\nimportant role in the empirical investigation of the laws and theories of\nvarious branches of study. It helps in verifying the practical validity of the\nlaws and theories of various branches of study.<\/p>\n\n\n\n The scope of statistics also expands to the area of Planning.\nPlanning is always done on the basis of past records or data. In this way,\nstatistics becomes a base for planning and forecasting about the future. <\/p>\n\n\n\n ACCORDING TO TIPPET<\/strong><\/p>\n\n\n\n \u201cPlanning is the order of the day and without statistics,\nplanning is inconceivable\u201d.<\/p>\n\n\n\n The saying of the Tippet rightly marked that the statistics\nand planning are indispensable.<\/p>\n\n\n\n The scope of statistics also extends to the field of\nIndustry. Statistical Quality Control is a branch of Statistics that deals with\n\u2018Quality Control\u2019 of manufactured goods. With the help of probability theory\nand sampling technique, control charts and inspection plans are formulated. <\/p>\n\n\n\n EXAMPLE:<\/strong> ISO (International Standard Organisation) has stipulated certain statistical procedures to be followed to get an ISO series certificates which have increased the scope of statistics. <\/p>\n\n\n\n Statistics is used in the field of banking for various activities\nlike<\/p>\n\n\n\n Also the credit policy is framed on the basis of the data\ncollected regarding the demand and supply of money in the economy.<\/p>\n\n\n\n Theory of probability is the tool of statistics that is used\nin the insurance sector for the calculation of premium rates. Also life\nexpectancy tables are prepared with the help of the statistics.<\/p>\n\n\n\n Statistics is also helpful in each and every activity that is covered under the framework of the commerce. It is used in the business activities such as:<\/p>\n\n\n\n Apart from the above mentioned areas, the scope of statistics also extends to the fields of Chemistry, Sociology, engineering, accounting, auditing etc. It is instrumental in enhancing human welfare and as such is a master key that enables us to solve the problems of mankind almost in every field.<\/p>\n\n\n\n\n\n\n\n Answer:<\/p>\n\n\n\n Statistics are numerical statement of facts capable of\nanalysis and interpretation as well as study of the methods used in collection,\norganization, presentation, analysis and interpretation of numerical data.<\/p>\n\n\n\n Statistics word has been derived from<\/p>\n\n\n\n It refers to group of numerical data collected in a systematic manner with some definite objective. <\/p>\n\n\n\n ACCORDING TO HORACE SACRIST<\/strong><\/p>\n\n\n\n \u201cStatistics is the aggregate of facts, affected to a marked extent by 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\u201d.<\/p>\n\n\n\n In singular sense, statistics refers to a science of all\nthose statistical methods and techniques which are related with various stages\nof statistical analysis.<\/p>\n\n\n\n ACCORDING TO CROXTON AND COWDEN<\/strong><\/p>\n\n\n\n \u201cStatistics may be defined as the science of collection, presentation, analysis, interpretation of numerical data.\u201d<\/p>\n\n\n\n A good businessman makes a good sales prediction keeping in view all types of seasonal and market variations. The big industrial units test the quality of raw materials they purchase and the finished goods they sell by methods of sampling. The businessmen can also study the additional requirements which propels people to like their products. The businessmen give sale-incentives for their agencies in the form of higher commissions, price-cuts etc. It is possible only if relevant data are available. Thus in modern business, it is due to availability of data, that suitable policies can be followed in case of production, investment, marketing and sale management. <\/p>\n\n\n\n Following are of the typical application areas:<\/p>\n\n\n\n Use for Quality Management (SQC)<\/strong>: Statistical quality control (SQC) helps in separating the assignable causes from the chance causes. SQC techniques also help in reducing and stabilizing process variation that may reduce cost significantly.<\/p>\n\n\n\n Use in Process Capability:<\/strong> It enables us to find out whether the enterprise is capable of meeting customer specification. If it is not meeting customer requirements, then management has to take decisions regarding the modernization of plant, change the technology etc. to achieve process capability. Statistics plays a crucial role in this field.<\/p>\n\n\n\n Use in Finance area<\/strong><\/p>\n\n\n\n (a) Financial ratio analysis: <\/strong><\/em>Key financial ratios are worked out, by using the Balance sheet and income statement data, to know the financial health of an enterprise, comparative statistical analysis reveals the performance of the company in the past years and the emerging trend in the future.<\/p>\n\n\n\n (b) Cash forecasting<\/em><\/strong>: Financial analyst has to forecast cash requirement to meet short-term obligations eg payment of salary, working capital, payments to suppliers etc. Statistical analysis helps in working out realistic cash forecasting.<\/p>\n\n\n\n Use in Materials Management<\/strong> <\/p>\n\n\n\n (a) Inventory level:<\/em><\/strong> By using appropriate statistical methods one can maintain in optimum inventory level of raw materials and finished products and thus savings are made which impact the profit.<\/p>\n\n\n\n (b) Quality assessment for incoming and outgoing items:<\/em><\/strong> Statistical sampling techniques help in ensuring quality of incoming and outgoing items. Raw materials and the other items are checked for quality to meet customer’s needs and inspection of finished products is done on sample basis to reduce complaints from customers.<\/p>\n\n\n\n Use in Marketing<\/strong><\/p>\n\n\n\n (a) Marketing research<\/strong>:<\/em> It provides solutions to various problems involved in marketing goods, services or ideas. In this context systematic collection, analysis and interpretation of marketing data is done by using statistical methods. Marketing decisions involve the introduction of new product, reaction of consumer to price hike, effectiveness of advertisement comparison etc.<\/p>\n\n\n\n (b) Demand projections:<\/em><\/strong> Short-term and long term demand projections are required for the company’s products and services. These projections are required both for domestic and international markets. Statistical surveys and analysis of the past time series data relating to industry provides reliable sales and demand projections.<\/p>\n\n\n\n Undoubtedly, statistics<\/a> has universal applicability, but there are also some facts which prove as limitations of statistics. <\/p>\n\n\n\n ACCORDING TO NEWSHOLME<\/strong><\/p>\n\n\n\n \u201cStatistics must be regarded as an instrument of research of\ngreat value but having severe limitations which are not possible to overcome\nand as such need our careful attention.\u201d<\/p>\n\n\n\n The limitations of statistics are as follows:<\/p>\n\n\n\n Statistics consider only those facts that can be expensed\nquantitatively. It means statistics do not record qualitative aspects of the\ndata. The important variables like honesty, integrity, loyalty etc. cannot be\nstudied under the scope of the statistics. \nTo study the qualitative data, first it must be converted into the\nquantitative form, and then the technique of statistical analysis can be\napplied on it.<\/p>\n\n\n\n ACCORDING TO HORACE SACRIST<\/strong><\/p>\n\n\n\n \u201cSome phenomenon cannot be quantitatively measured, honesty\nof resourcefulness, integrity, goodwill, all important in industry as well as\nin life generally, are not susceptible of direct statistical measurement.\u201d<\/p>\n\n\n\n The results of the statistics are not applicable on the\nindividuals. This is so because statistics cannot deal with the single,\nisolated and ungrouped data. It deals with set of observations only.<\/p>\n\n\n\n EXAMPLE: <\/strong>The finding of per capita income of Punjab does not mean every person residing there has same income. Some people may have more and other may have less. This shows that statistics do not deal with individuals and its results are applicable on group only.<\/p>\n\n\n\n ACCORDING TO WI KING<\/strong><\/p>\n\n\n\n \u201cStatistics largely deals with averages and these averages\nmay be made up of individuals items radically different from each other.\u201d<\/p>\n\n\n\n The above statement truly reflects that statistics deals\nwith averages only. In fact, statistics is not a pure science as like other\nphysical sciences. The reason being the phenomenon taken under the study is\naffected by multiplicity of causes. And it is impossible to study the effect of\neach factor individually.<\/p>\n\n\n\n Statistics can be easily misused if the wrong person is\nusing it. There is lots of personal judgment or biasness involved in it while:<\/p>\n\n\n\n A statistician or researcher can misuse the data collected<\/p>\n\n\n\n Statistics do not provide solutions to the all kinds of the\nproblems in all circumstances. There are so many problems which are affected by\nmany factors like culture, religion, history, philosophy, character etc.\nStatistics are not of so much help to study all such problems.<\/p>\n\n\n\n The techniques of the statistics are not easy to use. These\ncan be used by experts only who are having sufficient knowledge of applying the\ntechniques. Also the researcher must possess the experience of collecting the\ndata from the adequate or correct sources.<\/p>\n\n\n\n Statistics is the science of averages. All the results are\nfound out with the help of the probabilistic analysis techniques. The findings\nare not purely correct. The outcomes are also not applicable in all the\nsituations. This proves as one of the serious limitations of statistics.<\/p>\n\n\n\n \u201cStatistics deals only with measurable aspects of things and\ntherefore can seldom give the complete solution to a problem. They provide a\nbasis for judgement but not the whole judgment.\u201d<\/p>\n\n\n\n ACCORDING TO CROXTON AND COWDEN<\/strong><\/p>\n\n\n\n \u201cIt must be assumed that the statistical method is the only\nmethod for the use in research; neither should this method be considered the\nbest attack for every problem.\u201d<\/p>\n\n\n\n The tools of statistics are supposed to be only a means to\nunderstand any given problem rather than a method to solve any problem.<\/p>\n\n\n\n\n\n\n\n Answer:<\/p>\n\n\n\n Statistics are numerical statement of facts capable of\nanalysis and interpretation as well as study of the methods used in collection,\norganization, presentation, analysis and interpretation of numerical data.<\/p>\n\n\n\n Statistics word has been derived from<\/p>\n\n\n\n It refers to group of numerical data collected in a systematic manner with some definite objective. <\/p>\n\n\n\n ACCORDING TO HORACE SACRIST<\/strong><\/p>\n\n\n\n \u201cStatistics is the aggregate of facts, affected to a marked extent by 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\u201d.<\/p>\n\n\n\n In singular sense, statistics refers to a science of all\nthose statistical methods and techniques which are related with various stages\nof statistical analysis.<\/p>\n\n\n\n ACCORDING TO CROXTON AND COWDEN<\/strong><\/p>\n\n\n\n \u201cStatistics may be defined as the science of collection, presentation, analysis, interpretation of numerical data.\u201d<\/p>\n\n\n\n A good businessman makes a good sales prediction keeping in view all types of seasonal and market variations. The big industrial units test the quality of raw materials they purchase and the finished goods they sell by methods of sampling. The businessmen can also study the additional requirements which propels people to like their products. The businessmen give sale-incentives for their agencies in the form of higher commissions, price-cuts etc. It is possible only if relevant data are available. Thus in modern business, it is due to availability of data, that suitable policies can be followed in case of production, investment, marketing and sale management. <\/p>\n\n\n\n Following are of the typical application areas:<\/p>\n\n\n\n Use for Quality Management (SQC)<\/strong>: Statistical quality control (SQC) helps in separating the assignable causes from the chance causes. SQC techniques also help in reducing and stabilizing process variation that may reduce cost significantly.<\/p>\n\n\n\n Use in Process Capability:<\/strong> It enables us to find out whether the enterprise is capable of meeting customer specification. If it is not meeting customer requirements, then management has to take decisions regarding the modernization of plant, change the technology etc. to achieve process capability. Statistics plays a crucial role in this field.<\/p>\n\n\n\n Use in Finance area<\/strong><\/p>\n\n\n\n (a) Financial ratio analysis: <\/strong><\/em>Key financial ratios are worked out, by using the Balance sheet and income statement data, to know the financial health of an enterprise, comparative statistical analysis reveals the performance of the company in the past years and the emerging trend in the future.<\/p>\n\n\n\n (b) Cash forecasting<\/em><\/strong>: Financial analyst has to forecast cash requirement to meet short-term obligations eg payment of salary, working capital, payments to suppliers etc. Statistical analysis helps in working out realistic cash forecasting.<\/p>\n\n\n\n Use in Materials Management<\/strong> <\/p>\n\n\n\n (a) Inventory level:<\/em><\/strong> By using appropriate statistical methods one can maintain in optimum inventory level of raw materials and finished products and thus savings are made which impact the profit.<\/p>\n\n\n\n (b) Quality assessment for incoming and outgoing items:<\/em><\/strong> Statistical sampling techniques help in ensuring quality of incoming and outgoing items. Raw materials and the other items are checked for quality to meet customer’s needs and inspection of finished products is done on sample basis to reduce complaints from customers.<\/p>\n\n\n\nSTATISTICS IN SINGULAR SENSE<\/h4>\n\n\n\n
SCOPE OF STATISTICS<\/h4>\n\n\n\n
STATISTICS AND THE STATE<\/h4>\n\n\n\n
STATISTICS AND ECONOMICS<\/h4>\n\n\n\n
STATISTICS AND ECONOMETRICS<\/h4>\n\n\n\n
STATISTICS AND NATURAL SCEINCES<\/h4>\n\n\n\n
STATISTICS AND PHYSICAL SCEINCES<\/h4>\n\n\n\n
STATISTICS AND SOCIAL SCEINCES<\/h4>\n\n\n\n
STATISTICS AND RESEARCH<\/h4>\n\n\n\n
STATISTICS AND PLANNING<\/h4>\n\n\n\n
STATISTICS AND INDUSTRIAL MANAGEMENT<\/h4>\n\n\n\n
STATISTICS AND BANKING<\/h4>\n\n\n\n
STATISTICS AND INSURANCE<\/h4>\n\n\n\n
STATISTICS AND COMMERCE<\/h4>\n\n\n\n
CONCLUSION<\/h4>\n\n\n\n
BUSINESS STATISTICS NOTES BCOM 1ST YEAR<\/h2>\n\n\n\n
QUESTION: Define the term “Statistics” and discuss its use in business and trade. Also point out its limitations?<\/strong><\/h3>\n\n\n\n
STATISTICS IN PLURAL SENSE<\/h4>\n\n\n\n
STATISTICS IN SINGULAR SENSE<\/h4>\n\n\n\n
USE OF STATISTICS IN BUSINESS AND TRADE<\/h2>\n\n\n\n
LIMITATIONS OF STATISTICS<\/h4>\n\n\n\n
QUALITATIVE ASPECTS IGNORED<\/h4>\n\n\n\n
STATISTICS DEALS WITH\nAGGREGATES ONLY<\/h4>\n\n\n\n
STATISTICS DEALS WITH AVERAGES ONLY<\/h4>\n\n\n\n
STATISTICS CAN BE MISUSED<\/h4>\n\n\n\n
STATISTICS DOES NOT REVEAL THE ENTIRE STORY<\/h4>\n\n\n\n
STATISTICS CAN BE USED BY EXPERTS ONLY<\/h4>\n\n\n\n
STATISTICS RESULTS ARE NOT ALWAYS DEPENDABLE<\/h4>\n\n\n\n
ACCORDING TO CONNOR<\/h4>\n\n\n\n
ONLY A MEAN NOT AN END<\/h4>\n\n\n\n
BUSINESS STATISTICS NOTES BCOM 1ST YEAR<\/h2>\n\n\n\n
QUESTION: Define Statistics and discuss its utility as a managerial tool. Also discuss the ‘distrust’ of Statistics?<\/h3>\n\n\n\n
STATISTICS IN PLURAL SENSE<\/h4>\n\n\n\n
STATISTICS IN SINGULAR SENSE<\/h4>\n\n\n\n
UTILITY OF STATISTICS AS A MANAGERIAL TOOL<\/h2>\n\n\n\n
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