Table of Contents

Sl. No. Topics Page. No.

01. Introduction 01
02. Definition of statistics: 01
03. 02
Definition of Business Statistics
04. “Statistics Is the Numerical Expression But all 02
the numerical expression are not statistics”
05. Steps in statistical investigation 03
06. 05
Functions of statistics
07. Scope of statistics 07
08. Definition of data 08
09. 09
Types of Data
10. Sources of Data 09
11. 11
Methods of Primary Data Collection
12. Requirements of good questionnaire 13
13. Prepare or designing a good questionnaire 15
14. 16
Classification of data
15. Exclusive method, Inclusive method 17
16. 18
Population
17. 19
Sample,
18. Sampling, Parameter. 20

INTRODUCTION:
 The word “statistics” is very popularly used in practice. Statistics is the study of the collection,
analysis, interpretation, presentation, and organization of data. In applying statistics to, e.g., a scientific,
industrial, or societal problem, it is necessary to begin with a population or process to be studied.
Populations can be diverse topics such as "all persons living in a country" or "every atom composing a
crystal". It deals with all aspects of data including the planning of data collection in terms of the design of
surveys and experiments.

At first professor G.Achenwall used the word “statistics” in 1749. Then john gaunt (1620-1674) who
was the user of statistics in case of vital statistics. The word statistics derived from the,

The Latin word – states

The Italian word – statista
The German word – statistik
The French word – statistique. Which means political state?

Definition of statistics:

Statistics means the numerical expression. In singular perspective the meaning of statistics
is that statistics suggests those formula and functions through which the calculated subject is expressed. A
type of mathematical analysis involving the use of quantified representations, models and summaries for a
given set of empirical data or real world observations. Statistical analysis involves the process of collecting
and analyzing data and then summarizing the data into a numerical form.

Scholar view:

According to croxton and cowden: defined statistics as the subject of collection, presentation, and
analysis and interpretation of numerical data.

According to Yule and Kendal defined: statistics means quantitative data, which are affected to a
market extent by multiplicity of causes

According to bowely defined: statistics is numerical statement of facts in any department of

enquiry placed in relation to each other.

According to W.I.King defined: statistics is the science of decision making in the field of uncertainty.
Statistics as a method of analysis. Statistics methods used at arriving in quantitative information or
statistical data. a theory and method of collecting organizing, presenting, analyzing and interpreting and
drawing conclusion based on the data.

DEFINITION OF BUSINESS STATISTICS:

 Statistical method and techniques used to analyze data collected from various fields of
business and management is called business statistics. Business statistics is a science assisting us to make
business decisions under uncertainties based on some numerical and measurable scale.

Business statistics is the collection of numerical data regarding business, presentation, interpretation and
analysis. In this respect Boddingtons says, in order to succeed in any business today, the businessman must
study all factors which entire into the production, buying, selling, exporting and importing goods.

“Statistics Is the Numerical Expression But all the numerical expression are not
statistics”

By statistics we can aggregate of facts affected to a market extent by multiplicity of causes,

numerically expressed, estimated according to reasonable standards of accuracy, collected in a systematic
manner for a pre determined purpose and placed in relation to each other.

This definition clearly points out numerical data must possess in order that they may be called statistics. They
are as follows:

Statistics are aggregate facts:

Individual and segregated information cannot be statistics. Rather statistics is aggregated and
interrelated collection of information. Single and isolated figures are not statistics for the simple reason that
such figures are unrelated cannot be compared. For example a single figure relating to production, sale, birth,
death cannot be regarded statistics although aggregates of such figures would be called statistics because of
their comparability and relationship.

Statistics are affected by multiplicity causes:

Statistics is not the outcome of single causes; it is rather influenced by various causes. But it is
almost impossible to discuss all the causes elaborately. For example statistics of production of rice are affected
by rainfall, quality of soil, seeds and manure, method of cultivation etc.

Statistics are numerically expressed:

All statistics are numerically statements of facts. I.e. expressed in numbers. If information
tends to be a statistics, it must be expressed in number. The information that cannot be expressed in numbers
cannot be information. Life span, height, weight of man can be expressed in number. So they belong to statistics.
But upper class or lower class is not statistical estimation.

Statistics are enumerated or estimated according to reasonable standards of accuracy:

 The data should be proper and correct as far as possible so that they can be employed or applied
confidently for a special purpose. Though it is impossible for the data to be absolutely right, care should be taken
to minimize the errors. For example estimating the average age of the students of a class, an approximate age of
every student should be collected and will do it.

Statistics are collected in a systematic manner:

Before collecting statistics, a suitable plan of data collection should be prepared and the work
carried in systematic manner. Data collected in a haphazard manner would very likely lead to fallacious
conclusion.

Statistics are collected for a pre-determined purpose:

The purpose of collecting data must be decided in advance. The purpose should be well defined
and specific. For example, if the objective is to collect data on prices it would not serve any useful purpose unless
one knows whether he wants to collect data on wholesale or retail prices.

Statistics should be placed in relation to each other:

If numerical facts are to be called statistics, they should be comparable. Valid comparisons can be
made only if the data are homogeneous.

In the absence of the above characteristics numerical data cannot be called statistical, hence,. “all statistics are
numerical statements of facts but all numerical statements of facts are not statistics”.

Steps in statistical investigation-

The large volume of numerical information gives rise to the need for systematic methods which
can be used to organize, present, analyze and interpret the information effectively.

Croxton and cowden have given a very simple and concise definition of statistics, in their view; statistics may be
defined as a science of collection, presentation, analysis and interpretation of numerical data. This definition
clearly points out five stages in statistical investigation.

Five stages of statistical investigation:

 Collection of data
 Organization of data
 Presentation of data
 Analysis of data
 Interpretation of data.
Collection of data:

Collection of data constitutes the first step in a statistical investigation. If data are faulty, the
conclusions drawn can never be reliable. The data may be available from existing published or unpublished
sources or else may be collected by the investigator himself. The firsthand collection of data is one of the most
difficult and important tasks faced by statistician. Therefore the investigator must take special care in collection.
There are different methods of collection of data (census, sampling, primary, secondary, etc) and must be
reliable.

Organization of data:

Data collected from published sources are generally in organized from. The collected data must be
edited very carefully so that the omissions, inconsistencies, irrelevant answers and wrong computation in the
returns from survey may be corrected or adjusted.

Presentation of data:

After the data have been collected and organized they are ready to presentation. The collected and
organized data are generally in an unintelligible from and need to be classified and tabulated before they can be
analyzed. Data presented in an orderly manner facilitates statistical analysis.

Analysis of data:

After the presentation of data, the next step is to analyze the presented data. Methods used in
analyzing the presented data are numerous ranging from simple observation of data of complicated,
sophisticated, and highly mathematical techniques, through the means of measure central tendency, dispersion,
skewness etc.

Interpretation of data:

The last stage in statistical investigation is interpretation. Drawing conclusion from the collected and
analysis data. The interpretation of data is a difficult task and necessities a high degree of skill and experience. If
the data that have been analyzed are not properly interpreted, the whole object of the investigation may be
defeated and fallacious conclusion dawn. According to Wallis, statistics is a body of methods for making wise
decision in the face of uncertainty. Therefore the future course of events can be forecast through the
interpretation of data.

Functions of statistics:
 Statistics as a discipline is considered indispensable in almost all spheres of human knowledge.
There is hardly any branch of study which does not use statistics. Scientific, social and economic studies use
statistics in one form or another. These disciplines make-use of observations, facts and figures, enquiries and
experiments etc. using statistics and statistical methods. Statistics studies almost all aspects in an enquiry. It
mainly aims at simplifying the complexity of information collected in an enquiry. It presents data in a
simplified form as to make them intelligible. It analyses data and facilitates drawl of conclusions. Now let us
briefly discuss some of the important functions of statistics.

The various functions performed by statistics in modern times are discussed under:

1. Simplification of Complex Facts:

The foremost purpose of the statistics is to simplify huge collection of numerical data. It is beyond the
reach of human mind to remember and recollect the huge facts and figures. Statistical method makes it possible
to understand the whole in the short span of time and in a better way.

2. Comparison:

Comparison of data is yet another function of statistics, simplifying the data; it can be correlated or
compared by certain mathematical question like averages, ratios, coefficients etc. In this regard Boddingtons
opined that the object of statistics is to enable comparison to be made between past and present results will a
view to ascertain the reasons for changes which have taken place and the effect of such changes in the future.

3. Relationship between Facts:

Statistical methods are used to investigate the cause and effect relationship between two or
more facts. The relationship between demand and supply, money-supply and price level can be best understood
with the help of statistical methods.

4. Formulation and Testing of Hypothesis:

The most theoretical function of statistics is to test the various types of hypothesis and discover a
new theory. For instance, by using appropriate statistical tools we can test the hypothesis whether a particular
coin is fair or not, whether Indian consumers are brand loyal etc.

5. Forecasting:

Statistical methods are of great use to predict the future course of action of the phenomenon. It is
only on the basis of statistical techniques that I planners in India prepare future estimates for production,
consumption, investment etc.

6. Enlarges Individual Knowledge:

 Statistical methods sharpen the faculty of rational thinking and reasoning of an individual. It is a
master-key that solves problems of mankind in every sphere of life. Thus, Whipple has rightly opined statistics
enables one to enlarge his horizon.

7. To Indicate Trend Behavior:

Statistics helps to indicate trend behavior certain fields of enquiry. The statistical techniques like
Analysis of Time Series Extrapolation etc. are highly used to know the trend behavior of the enquiry in question

8. Classification of Data:

Classification refers to a process of splitting up the data into certain parts which helps in the
matters of comparison and interpretation of the various features of the data. This is done by the various
improved techniques statistics.

9. To Measure Uncertainty:

In most of the social fields, comprising of business, commerce, economics, it becomes necessary to
take decisions in the face of uncertainty and study the change of occurrence of certain events and their effect on
the polio adopted.

10. To Draw Rational Conclusion:

In various fields of uncertainty like business and commerce, it is very much necessary to draw
rational conclusions on the basis of facts collected and analyzed. For this, the mind of the decision maker should
be free from any bias and prejudices.

Scope of statistics:

In the present world statistics is represented as an important subject to us regarding our daily life.
Statistics is not a mere device for collecting numerical data, but as a means of developing sound techniques for
their handling analysis and drawing valid inferences from them. Statistics is applied in every sphere of human
activity- social as well as physical like biology, commerce, education, planning, business management,
information technology etc. it is almost impossible to find a single department of human activity where statistics
cannot be applied. We now discuss briefly the scope of statistics given below:

Statistics and state:

For the fair government and administration of a country the use and application of statistics are inevitable.
The state craft, employment, taxation, and collection, annual budget, controlling crimes etc, require proper
statistics for their fair conduct.

Statistics and planning:

 Statistics in indispensable into planning in the modern age which is termed as "the age of planning". Almost
all over the world the govt. are re-storing to planning for economic development.

Statistics and economics:

Statistical data and techniques of statistical analysis have to immensely useful involving economical
problem. Such as wages, price, time series analysis, demand analysis.

Statistics and business:

Statistics is an irresponsible tool of production control. Business executive are relying more and more on
statistical techniques for studying the much and desire of the valued customers.

Statistics and industry:

In industry statistics is widely used inequality control. In production engineering to find out whether
the product is confirming to the specifications or not. Statistical tools, such as inspection plan, control chart etc.

Statistics and mathematics:

Statistics are intimately related recent advancements in statistical technique are the outcome of wide
applications of mathematics.

Statistics and modern science:

In medical science the statistical tools for collection, presentation and analysis of observed facts relating
to causes and incidence of dieses and the result of application various drugs and medicine are of great importance.

Statistics, psychology and education:

In education and physiology statistics has found wide application such as, determining or to determine
the reliability and validity to a test, factor analysis etc.

Statistics and war:

In war the theory of decision function can be a great assistance to the military and personal to plan
"maximum destruction with minimum effort."

Statistics and commerce:

Statistics are lifeblood of successful commerce. Any businessman cannot afford to either by under
stocking or having over stock of his goods. In the beginning he estimates the demand for his goods and then takes
step to adjust with his output or purchases. Thus statistics are indispensable in business and commerce.

Statistics and weather forecasting:

We can have weather forecasting by considering the present and the past statistical information of it.
In this regard, the time series of statistics is used. Besides we can have fore knowledge about coming flood,
draught, tidal, etc and other natural disaster.

Statistics and science:

 The methodical system of statistics is necessary for the analysis of the impropriety of the project and
research. Statistics is needed in physics, chemistry, geology, astronomy, genetics and different branches of
science.

Statistics and research:

Statistics indispensable in research work. Most of the advancement in knowledge has taken place
because of experiments conducted with the help of statistical methods. In fact, there is hardly any research work
today that one can find complete without statistical data and statistical methods.

DATA:

Statistics always deals with information and information’s should be expressed in number if we like to
analyze it. Certain type of information’s that are expressed in numerical from can be termed as data. Therefore
data is the most essential part in analysis.

DEFINITION OF DATA:

Data is the plural from of datum. Data are the collection of raw facts and figures from any sects of
inquiry for the purpose of statistical analysis. A set of observations obtained from a particular enquiry is called
data or data set. In computing, data is information that has been translated into a form that is more convenient
to move or process. In other contexts, data has somewhat different meanings. it is a facts or information used
usually to calculate, analyze, or plan something.

DATUM:

Single observation known as datum. One item of information, one fact, one statistic, is on its own a
datum, the singular form of the more commonly used "data." If you can't find one single datum to support your
theory, it's time for another theory. Whereas several bits of information taken together are called data, one is a
datum. The word comes from the Latin for "something given." Datum is also used for a starting point of
measurement, often used in surveying or engineering. The single datum that your experiment provided was that
you are tall, dark and handsome. Now stop looking in the mirror and do some research.

TYPES OF DATA:

We can be classified into two types of data on the basis of the nature, such as,

1. Qualitative data.
2. Quantitative data.

Qualitative data:
 The data which cannot be measured by the numerical form is called qualitative data. Such as:
region, economical condition, color, sex, etc.
Quantitative data:
The data which can be expressed in numerical from or in numbers are called quantitative data. For
example, family size, population size, height, weight, monthly income, etc.

SOURCES OF DATA:
Data constitute the foundation of statistical analysis and interpretation. Hence the first step in
statistical work is to obtain data. We may collect data by our own selves. To do so we have to constant to that
field in which we are interested. Data can be obtained from three important sources, namely,

1. Secondary sources.
2. Internal sources.
3. Primary data, depending on the source, we can have either secondary data or internal data or
primary data.

Secondary data:

The data which are already obtained by some other persons or organizations and are already
published or utilized are called secondary data. When an investigator uses the data which has already been
collected by others, such data are called secondary data. Secondary data can be obtained from journals, repots,
government publications, publications of research organizations, trade and professional bodies. Such data may
be full of errors because of bias, inadequate size of sample, substitution, errors of definition etc.

Internal data:

In statistical analysis of many business problems one may be able to use internal data which emerges in
the process of keeping records such as employee earnings from a payroll, sales amounts from a sales journal, and
the amount of raw materials. Thus the chief sources of internal data are the accounting records kept in most
business. Since internal data originate within the business, collecting the desired information does not offer much
difficult.

Primary data:

The data which are obtained by direct observations from the population or sample is called primary
data is called primary data. Primary data are normally collected for the first time, but if any researcher or
organization likes to collect the primary data by own self they certainly can do so. The primary data are original in
character and not well organized somehow, primary data are also called raw data or original data. The collection
of raw data is highly expensive in respect of money, time and labor
METHODS OF PRIMARY DATA COLLECTION:

The primary data are collected from the original source. The work of collecting original data is
usually limited by time, money, manpower available for the study. When the data to be collected are very large
in volume. The actual procedures used in collecting data are essentially the same whether all the items are to
be included or only some items are considered.

There are two basic methods of obtaining data, namely:

1. Questioning.
2. Observation.

Questioning:
Questioning, as the name suggest, is distinguished by the fact that data are collected by asking
questions from people who are thought to have the desired information. Questions may be asked in persons, or
in writing. A formal list of such questions is called questionnaire. Questionnaire refers to a device for securing
answers to questions by using a form which the respondent fills in him.

Observation:
When data are collected by observation, the investigator asks no questions; instead, he observes
the objects or actions or actions in which he is interested. Sometimes individuals make the observations, on the
other occasions, mechanical devices observe and record the desired information. Observation method does not
automatically produce accurate data. Physical difficulties in the observation situation on the part of the observe
may result in errors. Even more important, however, is the influence on observations of the observes training,
philosophy, opinions and expectations.

Questioning Approach Observation Approach

 Respondents play an active role
 Interview or a formal questionnaire
 Question design  Passive
 Can use either for exploratory, descriptive, or  In-person or mechanical devices
experimental  Time consuming
 Not all questioning or interviewing situations  Can use either for exploratory,
use formal questionnaires descriptive, or experimental
 Questionnaire is a tool that is used in many,
but not all, research projects

When questionnaire method used, three different techniques of communication with questionnaires are
available:
1. Personal interview,
2. Mail, And
3. Telephone.
Personal interviews:

Personal interviews are those in which an interviewer obtains information from respondents in face
to face meetings. The information obtained by this method is likely to be more accurate because the
interviewer can clear up doubts, can cross examine the informants and there by obtain correct information.

Mail questionnaire:

Mail questionnaires are placed in respondents hands by other means such as attaching them to
customer’s products, putting them in magazines or newspapers or having field workers leave them with
respondents. In each case respondents complete the questionnaires themselves and send back the completed
forms by post.

Telephone interviews:

Telephone interviews are similar to personal interviews except that communication between
interviewer and respondent is on the telephone instead of direct personal contact. Telephone conversation
cannot be very long and also replies on the telephone can very long and also replies on the telephone can be
very erratic and unreliable.

REQUIREMENTS OF GOOD QUESTIONNAIRE:

1. What information will be sought?

2. What types of questionnaire will be required?

3. How that (those) questionnaire will be administered?

4. What the content of the individual question will be?

5. How many question will be used and how the individual question will be sequenced?

6. What the form of response of each question will be?

7. Whether the questionnaire shall be structured or unstructured?

8. Whether the questionnaire shall be disguise and undisguised?

 Prepare or designing a good questionnaire:

Drafting of a good questionnaire is highly specialized job and requires great care, skill, wisdom,
efficiency and experience. Now hard and fast rules can be laid down for designing or framing a questionnaire.

1. The number of the questions should be as few as possible:

The number of questions in the investigation should be kept to the minimum, because
people do not feel happy in answering a long questionnaire. The entire question must be relevant to the problem
under investigation.

2. The questions should be short and simple to understand:

It must also be simple clear, unambiguous, brief, precise, and corroborative in nature.

3. Questions should be arranged logically:

The question must be arranged in a logical order so that a natural and spontaneous reply to each
induced. Thus the sequence of the questions should be considered carefully in terms of the purpose of the study
and the persons who will supply the information.

4. Questions of a sensitive nature should be avoided:

As far as possible questions of religious or personal or political nature should not be asked.
Sometimes, the informant may dislike such type of questions and may not give correct information.

5. Questions should be capable of brief answer:

The questionnaire should be so designed that the respondents are required to give very brief
answers.

6. Get up of the questionnaire:

The questionnaire should be made attractive and interesting through proper lay out and
presentation so as to induce high response.

7. Question should be capable of objective answer:

This type of question is known as multiple choice questions. This type is easy for the respondent to
answer and also easy for tabulation.
8. Instructions to the information:

The questionnaire should provide necessary instructions to the informants. For example, the
questionnaire should specify the time within which it should be sent back.

9. Pre- testing the questionnaire must be done before posting it:

Short comings of the questionnaire can be discovered by pre testing the questionnaire.

10. Footnotes:

If a particular questions needs clarification, it should be marked or lettered and the explanation provided
in footnotes.

Classification of data:

Classification:

Classification is a process of arranging the available information’s into homogeneous groups

according to similarities and non- characteristics. Therefore further analysis would be easier.

According to L .R. Conner: the process of arranging things in groups or classes according to resemblance and
affinities.

The data can be classified into the following types:

1. Geographical classification.

2. Chronological classification.

3. Quantitative classification.

4. Qualitative classification.

1. Geographical classification:
 In geographical classification the data are classified on the basis of geographical areas. For example
when we present the production of sugar cane, wheat, rice, etc, for various states is called geographical
classification.

Division Production(tones)

Dhaka 1572

Chittagong 1200

Rajshahi 1440

2. Chronological classification:

In chronological classification data are classified on the basis of time. For example, the
sales figures of a company are given below:

year Sales (Rs lakhs)

2010 18810

2011 23816

2012 32435

3. Quantitative classification:

In quantitative classification refers to the classification of data according to some

characteristics that can be measured such as height, weight, incomes, sales etc. For example the workers of a
factory may be classified according to wages as follows:

Monthly wages(Rs) No. of workers

4000-4500 100
 4500-5000 150

5000-5500 200

4. Qualitative classification:

In qualitative classification data are classified on the basis of some attribute or quality such as sex,
color of hair, literacy, religion etc. For the example, the classification according to the religion and sex of B.B.A
students of varsity given below:

Religion male female

Muslim 20 15

Hindu 7 5

Buddhist 5 2

There are two types of classifying the data according to the class intervals, namely;

1. Exclusive method.

2. Inclusive method.

Exclusive method:

In this method the upper limit of a class becomes the lower limit of the next class, it is called
“exclusive”, as we do not put any item that is equal to the upper limit of a class in the same class, we put in the
next class, the upper limit of classes are excluded from. The following data are classified on this basis,

Income (Rs) No. of employees

5000-6000 100

6000-7000 200

7000-8000 300
Inclusive method:

In this method the upper limit of any class interval is kept in the same class interval. In this method
the upper limit of a previous class is less by 1 from the lower limit of the next class interval. The following
data are classified on this basis:

Income (Rs) No. of employees

5000-5999 100

6000-6999 200

7000-7999 300

Population:

Population means the aggregate of human individuals in a defined area or region. In statistics,
population refers the totality of all the items or individuals having some specific characteristics. e.g., all
the students of Camilla University constitute a population.

A population can be classified into one of two groups-

a) Finite population:

A population having a finite number of units (or individuals or items) is called an finite
population.

Example: the population consisting the students of Camilla University.

b) Infinite population:

The population consisting of all possible outcomes (her head and tail) in successive tosses of a
coin.

Example: A representative and considerably small part of population is known as a sample of that
population.

Sample:
 A part of the population selected for study is called a sample. In other words, the selection of a
group of individuals or items from a population in such way that this group represents the population is
called a sample. A representative and considerably small part of population is known as sample of that
population.

Example: a group of 1500 students from 31000 students of Camilla University constitute a sample.

Sampling:

The methods for selecting, sample from a population known as sampling. In sampling method only a
part of the entire population is studied. In our daily life the sampling method is most frequently used, e,g, a
house wife tests only a small quantity of rice to see whether all the rice in the cooking pot has been well
cooked.

Parameter:

Any statistical measured computed from population data is known as statistic. A parameter is a
characteristic of a population. A statistic is a characteristic of sample. Inferential statistics enables you to
make an educated guess about population parameter based on statistic computed from a sample randomly
drawn from that population. . Numerical value which describes a population. Such as µ(population
mean) ,λ ,σ(population standard deviation) ,β correlation.