WELCOME
Introduction
To
Statistics
By:
Prajeet K. Timalsina
Imperial Business College
Hattisar, Kamaldi, Kathmandu
History and Development of Statistics
Word statistics has been derived from Latin word ‘Status’, Italian word
‘Statistica’ and German word ‘Statistik’ which means political state
Human beings used statistics unknowingly.
People used to keep the information’s of cattle’s, properties, records of
crops etc.
State used to keep the records of police and army.
Britain started to release the statics knowingly after the Napoleonic war.
It was used to formulate the economic policy.
So it can be argued that the origin of statistics in formal ways.
First comprehensive work on numerical interpretation of biological and social
phenomenon is due to John
Sir William Petty developed theory as Political Arithmetic
Statistics is used in every areas nowadays
They are the basis for many business, governmental and commodity decisions
In this context it is logical to recall H.G. Wells’s statement that “statical thinking will
one day be as necessary for efficient citizenship as the ability to read and write
Statistics may be used in
• Qualitative information of facts
• Statistical methods for handling numerical data
It is mostly used for collecting, analysing and summarizing the numerical data.
Definitions of Statistics
Definition of statistics are given by many scholars:
According to Horace Secrist,
“Statistics are aggregates of facts affected ta a marked extent by
multiplicity of causes, numerically expressed, enumerated or
estimated according to reasonable standard of accuracy, collected
in a systematic manner for a predetermined purpose and placed in
rational to each other.”
A comprehensive definitions given by cortex and Cowden is
“Statistics may be defined as the collection, presentation, analysis
and interpretation of numerical data.”
Parts of Statistics (Types)
There are two parts of statistics and they are:
A. Theoretical Statistics
B. Applied Statistics
A. Theoretical Statistics
It is also known as mathematical statistics which provides the approaches for making
decision.
It is further divided into two sub division
1. Descriptive Statistics
2. Inferential Statistics
Descriptive Statistics
Summarizes of data, which may be tabular, graphical or numerical
are known as descriptive statistics
Descriptive statistical measures are central tendency, measures of
dispersion, measures of skewness, measures of kurtosis, etc.
Inferential Statistics
Drawn sample can represent the entire population
Different Statistical techniques are used to draw the valid conclusion
On the basis of the statistical measures calculated from the
sample data so that the conclusion can be representative of whole
data
B. Applied Statistics
Consists of massive application of theoretical or
mathematical statistics in different area
It is used to solve day to day practical problems.
Statistics may be the art of making numerical
conjectures like :
Who is going to win the next election?
How many people are unemployed?
Why does the casino make a profit at roulette?
Fundamental Elements of a
Statistical Analysis
a) Problem Formulation
It is necessary to formulate a problem on which a study is carried out
Problems should be clearly understood
b) Objective of the study
Researcher needs to know the objectives of the study
The objectives should not be ambitious and should be feasible with
respect to cost, time and other resources
c) Sources of data
Data is the main source
Researcher should be able to know the source of data should be primary
or secondary
d) Preparations of Questionnaires
In order to collect the data it is necessary to prepare the suitable set of
questionnaire
Questions should be non-ambiguous, coherent, sequential, etc.
e) Conducting the field survey
Field work is the most to collect the correct data
Researcher should decide whether field work will be census or survey
f) Checking the data quality
It is necessary to check the units of measurements, quality of range, etc.
g) Data analysis
It should be analysed by using appropriate statistical
methods
Experienced statistician should be used
h) Interpreting and presentation of the findings
Researchers must have to interpret these findings in
meaningful manner
A comprehensive report is prepared with all the
statistical findings
Functions of Statistics
To represent facts from numerical figures in a definite form:
It shows every fact in figures and in numbers
To condense the widely and voluminous data:-
It is quite inconvenient to say something about the huge mass of data
It helps to condense the huge and voluminous data by using appropriate
statistical measures
To help classification of data.
To make the data comprehensive, it is useful to classify the data utilizing
statistical principle
To provide methods for making comparison:-
It provides different statistical procedure and methods for comparing
the relevant values with each other
To help in formulating policies:-
To formulate plan and policies ,need to based on statistical conclusion
on the data
To determine relationship between different phenomena:-
Its techniques such as; correlation and regression etc. are useful to
measure the relationship between the variables
To help in predicting future trends:-
On the basis of past or present estimate values of variables, other values of
variable for future time can be predicted.
To formulate the test the hypothesis:-
It is the science, which is most useful for formulate and testing hypothesis
To have an idea about the occurrence or non-occurrence of certain event:-
With the help of probability laws and rules one can find it
to draw valid inferences or conclusions:-
Due to different reason it is hard to enumerate each and every unit of
universe
Sample data are chosen and by using different statistical tools statistics
helps to draw valid conclusions
Scope of Statistics
Statistics in Business and Industries:
It is the implementation of program
For effective implementation of the organizational program, the number of
components need to be taken care
Generally, the issues such as commitment of top level mgmt.
Role of statisticians, planning for implementation etc. Play very important role
Statistics in Accounting:
-Public accounting firms use statistical sample procedures when conducting
audits for their clients
Eg;I f accounting firm wants to determine whether the A/R shown in clients B/S
fairly represents the actual amount of A/R or not there is need to take the
sample of the a/c by checking this, the auditor make conclusion whether this
amount is acceptable or not
Statistics in Finance
-To make financial decision and financial analysis
-Statistics helps to guide their investment recommendation
-statistical measure such as :-coeff.of variation, regression
analysis is used to study financial performance of any financial
institution and organ
Statistics in Economic
Statistics has widely used in economics
Economists used different statistical information and methods in
making forecasting, planning, formulation of economic policies,
unemployment rates, quality control charts, construction of price
index number etc.
Statistics in Computer and Informational Technology
Computer alone is not sufficient to resolve all the problems
related to data. For eg.computer cannot resolve the problems
that arise during the time of data collection, data analysis and
interpretation of information.
The availability of computers has resolved the problem of data
storage as well as the problem of data processing (process of
converting data into meaningful data)
The availability of internet facilities or other electronic mailing
devices has easy the communication of data or information
Limitations of Statistics
Statistics does not deal with individuals
Statistics does not deal with qualitative characteristics directly
Statistical laws are not exact
Statistics can be misused
Statistics starts with the assumptions
Data in statistics can be manipulated easily
Distrust of Statistics
Figures are innocent, easily believable and more
convincing
Figures forwarded for arguments may be inaccurate or
incomplete and thus might lead to wrong inference
Figures though accurate, may be presented by
manipulating them, If this happens public will be
misinformed
Any Question?
Thank you
