CHAPTER Introduction to Statistics Functions — Importance — Uses and Limitations of Statistics. Statistical data-Classification, Tabulation, Diagrammatic & Graphic representation of data. 14 12 13 14 Introduction. 1.1.1 Definitions of Statistics 1.1.2 Functions of Statistics. Importance and uses of statistics .. 4.21 Statistics in Planning .. 1.2.2 Statistics in State. 1.2.3 Statistics in Mathematics. 1.2.4 — Statistics in Economics. 1.2.5 Statistics in Industry 1.2.6 — Statistics in Astroriomy 1.2.7 Statistics in Social Sciences... 1.2.8 Statistics in War. Limitations of Statistics. 1.3.1. Statistics does not Study Qualitative Phenomenon... 1.32 Statistics Fails to Cover (Study) Individuals 1.3.3 Statistical Laws are not Exact. 1.3.4 Statistics is Liable to be Misused.. Statistical data-classification . 1.4.1 Funetions of Classification 1.4.2 Reasons for Data ClassificationQuanti 15 16 az 18 ive Analysis (MU-Sem.6-Comp) 3 Types of Data Classification 1.4.4 Three Main Types of Data Classification. 1.4.5 Determining Data Risk. 14.6 Using a Data Classification Matrix. 1.4.7 An example of Data Classification, 1.4.8 Regression Algorithm Versus Classification Algorithm 1.4.9 Application Domains, 1.4.10 Rules for Classification 1.4.11 Bases of Classification 1.4.12 Geographical Classification, 14.13 Chronological Classification 1.4.14 Qualitative Classification 1.4.15 Quantitative Classification Tabulation-Meaning and its Importance. 1.5.1 The Parts of a Table 1.5.2 Types of Tabulation... 1.5.3 Types of Tabi 15.4 Solved Examples on Preparation of Tables Diagrammatic and graphic representation of data ... 1.8.1 Difference between Diagrams and Graph: 1.6.2 General Rules for Constructing Diagrams. 1.6.3 Univariate analysis (U.A) 1.6.4 Steps to be Followed for U.A. Methods of Univariate Distribution 1.7.1 Frequency Distribution (F.D.) 1.7.2 Bar-Charts 1.7.3 Bar-Graph.. 1.7.4 Histogram 1.7.5 Pie-Chart 1.7.6 Pie-diagram.. 1.7.7 Comparison Table (Bar Chart V/s Histogram). 1.7.8 Comparison Between Histogram and Bar Graph 1.7.9 Frequency Polygon. Important Questions for Exam. * Chapter Ends ye (New Syllabus w.e.f academic year 21-22) (M6-76) & Tech-Neo Publications ...A SACHIN SHAH Vent!ee Quantitative Analysis (MU-Sem.6-Comp) (Introduction to Statistics) ...Pg. No. (1-3) 1.1 INTRODUCTION The subject of statistics is as old as human civilisation, although the sphere of its utility was very much restricted. ‘The word statistics is derived from the Latin word ‘Status’, which means a political state. + In the ancient times the scope of statistics was primarily limited to the collection of the following data by the governments for military and fiscal policies. (i) Age and sex-wise population of the country. (ii) Property and wealth of the country. Helps the government to have an idea of the manpower of the country, so that it can safeguard the country against any outside aggression and (i) Provides the government with information for introduction of new taxes and levies. + Noted Englishmen did pioneering work in developing the subject of statistics. One writer has used the following words : “R.A. Fisher is the real giant in the development of the theory of statistics.” Indian statisticians also have made valueable contribution in the theory of statistics. . + Notable among them are : CRRao (Statistical Inference), Parthasarthy (Theory of Probability), P.C, Mahalanobis and P.V. Sukhatme (Sample Surveys); S.N. Roy, (Multivariate ‘Analysis); R.C. Bose, KR. Nair, J.N. Srivastava (Design of Experiments) and others have placed India’s name in the world map of statistics. YS 14:1 Definitions of Statistics ‘The word statistics conveys different meanings in singular and plural sense. When used as plural, statisties means numerical set of data and when used in singular, it means the science of statistical methods used for collecting, analysing and drawing inferences from the numerical data. “Statistic may be defined as the aggregate of facts affected by 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 pre- determined purpose and placed in relation to each other” _ Prof. Horace Seerist. (New Syllabus w.ef academic year 21-22) (M6-76) a ‘Tech-Neo Publications ...A SACHIN SHAH Venturequantitative Analysis (MU-Sem.6-Come) (introduction to Statistics) Pa. No (1x «Someone has jokingly said : «gince statistics is the science of averages, 6° if head is kept in boiler and legs , freeze, then the temperature of the stomach is statistics.” Ys. 1.1.2 Functions of Statistics ‘Three main functions of statistics are : (1) Collection of data Following are methods of collection of data : (a) Direct personal enquiry method. (b) Indirect oral investigation. (©) By fitting of schedules (d) By mailed questionnaires. (e) Information from local agents and correspondents. (By old records. (g) By direct observational methods. (2) Presentation of data ‘There are two kinds of statistical data, they are > (a) Primary data and (b) Secondary data (8) Analysis of data The requisites are : . (a) It should be complete. (b) It should be consistent. (© It should be accurate. 7 (@) It should be homogeneous in respect of unit of information. yi 1.2 IMPORTANCE AND USES OF STATISTICS a «After the second world war, the concept of welfare state took its roots alm? the world. «Hence the scope of statistics has widened to social and economic phenome ys! * statistics is viewed not only as a mere device of collecting numerical 0° : means of sound techniques for their handling and drawing inferences from (Ne se er (New Syllabus wef academic year 21-22) (6-76) UBT cx st ‘ech-Neo Publications .-A SA zQuantitative Analysis (MU-Sem.6-Comp) (New Syllabus w.e academic year 21-22) (M6-76) (Introduction to Statistics) ...Pg. No. (1-5) Because of mathematical treatment, it includes all sciences : social, physical and natural. It finds numerical applications in various diversified fields such as agriculture, industry, sociology, biometry, planning, economics, business, management, psychometry, insurance, accountancy and auditing and so on. . ‘The importance of statistics is correctly expressed by the commissioner of labour Carol D. Wright. “To a very striking degree our culture has become a statistical culture. Even a person who may never have heard of an index number is affected ... by ... of those index numbers which describe the cost of living. It is impossible to understand psychology, Sociology, Economics, Finance or a Physical Science without some general idea of the meaning of an average, of variation, of sampling, of how to interpret charts and tables.” According to H.G. Wells : “Statistical thinking will one day be as necessary for effective citizenship as the ability to read and write.” Also, according to Bowley : “A knowledge of statistics is like a knowledge of foreign language or of algebra : It may prove of use at any time under any circumstances”. Now, we discuss importance of statistics in some different disciplines. 1.2.1 Statistics in Planning The modern age is termed as ‘age of planning’ and almost all organisations in the government or business or management are resorting to planning for efficient working and for formulating policy decisions. To achieve this end, the statistical data relating to production, consumption, prices, investment, income, expenditure and so on and the advanced statistical techniques such as index numbers, time series analysis, demand analysis and forecasting techniques for handling such data are very important. In India, the use of statistics in planning was well visualised long back and the National Sample Survey (N.S.S.) was primarily set up in 1950 for the collection of statistical data for planning in India. 1.2.2 Statistics in State The idea of welfare state is taking its roots in almost all countries. Today statistical data and techniques are must to the government in future economic programmes. Mortality (death) statistics serve as a guide to the health authorities for sanitary improvements, improved medical facilities and public cleanliness. Tech-Neo Publications ...A SACHIN SHAH Venture(introduction to Statistics) Statistical Organisation (C.S.0.. %_ 1.2.3. Statistics in Mathematics ® Prices of + The modern theory of statics is based on the theory of probability. Also the G® Industria development of statistical techniques and theories for application to varices tclaneen, Ci) Sales Social, Physical and natural are based on different mathematical modele, (0) Imports * _ Tho increasing role of mathematics into statistics has led to a new branch of statisticg (© Cost of called Mathematical Statistics.’ In short, “Statistics is a branch of applieg ° ~The demand | mathematics which specialises in data,” determine the YS 1.2.4 Statistics in Economics am a * Statistical data and advanced techniques of statistical analysis are immensely useful GD The price in the solution of a variety of distribution of income and cenuttion ofthe various commodities by different sections of the society and dn a enable us to have some idea about their purchasing capacity and their standard of nen living. = ‘The studies of production statistics enable us to strike a balance between supply ud 1.2.6 Seats demand which is provided by the laws of ‘supply and demand. The income and wealth © Astronomers 1 ‘statistics are helpful in reducing the disparities of income. bodies Hike star + The statistics of prices are needed to study the price theories and the general probe The principle of inflation through the construction of the cost of living and wholesale price index the famous ‘Noi numbers. + Gauss used ‘* Exchange statistics reflect upon the commercial development of a nation and tell measurements about the money in circulation and the volume of the business in the country. + The advanced and sound statistical techniques have been used succesfully i im analysis of cost functions, production functions and consumption funetions. neta ent * Time series analysis, index numbers, forecasting techniques and demand analysis 1.2.7 Statistic ‘ of estimates’. some of the very powerful statistical tools are usod in economic data and economt =| 5 planning. - which bring ou ‘+ Time series analysis is used for the study of series relating to prices, production objet to abject. consumption of commodities, bank clearings, money in circulation ete. os ——— ven (New Syllabus w.e academic year 21-22) (M6-76) a} tech-Neo Publications ...A SACHIN SHAH {New Sylabus we acdQuantitative Analysis (MU-Sem.6-Comp) (Introduction to Statistics) ...Pg. No. (1-7) Index numbers are termed as ‘economic barometers’. They are the numbers and exhibit the changes over specified period of time in @ Prices of different commodities. Gi) Industrial / Agricultural production. Gi) Sales Gv) Imports and exports. (v) Cost of living etc. ‘The demand analysis consists in making an economic study of the market data to determine the relation between : (i) The prices of a given commodity and its absorption capacity for the market i.e. demand and (ii) The price of a commodity and its output i.e. supply. 1.2.5. Statistics in Industry In industry, statistics is used in ‘Quality control’. The main aim in any production process is to control the quality of the manufactured product so that it conforms to specifications. ‘This is called process control and is achieved through the powerful technique of control charts and inspection plans. 1.2.6 Statistics in Astronomy Astronomers made statistical data recordings about the movements of heavenly bodies like stars and planets for the study of eclipses. The principle of least squares was developed by Gauss to obtain the equation of the famous ‘Normal Law of Errors’ in Astronomy. Gauss used the normal curve to describe the theory of accidental errors of measurements involved in the calculation of orbits of heavenly bodies. 1.2.7 Statistics in Social Sciences According to W.I. King, “The science of statistics is the method of judging collective, natural or social phenomenon from the results obtained from the analysis or collection of estimates”. Every social phenomenon is affected to a marked extent by a multiplicity of factors which bring out the variation in observations from time to time, place to place and object to object. (New Syllabus w.ef academic year 21-22) (M6-76) [Ral rech-Neo Publications ..A SACHIN SHAH Venturea Quantitative Analysis (MU-Sem.6-Comp) {introduction to Statistics) Pg. No. (1. Statistical tools of Regression and Correlation Analysis ean be used to study the effay of each of these factors on the given observation. Sampling Techniques and Estimation Theory are powerful tools for any social survey, * Statistical data and statistical techniques have been used extensively in soca sciences. * Croxton and Cowden have remarked : “Without an adequate understanding of the statistical methods, the social sciences may be like the blind man grouping in a dark that is not there. The methods of statistics are useful in an ‘human activities in any field of thought in which numerical d 1.2.8 Statistics in War the investigator iy room for a black ca over-widening range « lata may be had”. Statisties can also be used in war-times. Without the data concer ning the military strength of the enemy, it is not possible to face a war. * Pakistan lost the war in spite of the fact that it had much more sophisticated military equipments in terms of war aeroplanes, The statistical analysis revealed that this was due to inadequate, insufficient and inferior training given to the Pakistan milita This shows that war cannot be won by merely modernising the fleet of war planes bombers, tanks ete. ry Personnel in the use of equipment. ‘The army officials should be given sufficient, equipment. *1 1.3 LIMITATIONS OF STATISTICS ee right training for the effective use of th: Although statistics is used widely in almost all sciences : social, physical and naturé and also used in almost all spheres of human activity, there are still some limitatio which restrict its scope and utility. YD 1.3.1 Statistics does not Study Qualitative Phenomenon Statistics are numerical statements, Since statistics deals with only numerical dat®;" ‘can be applied to only those phenomena which can be measured quantitatively. For example, the standard of living ofthe people in Pune has gone up cansidersb! ideral compared with the last year or the population of India has increased consider®! during the last few years do not constitute statistics, . ee Pen eran ei tule (New Syllabus w.e,f academic year 21-22) (M6-76) TB rech-Neo Publications ...A SACHIN SHAH Ve!(Introduction to Statistics) Quantitative Analysis (MU-Sem.6-Comp) Thus, it means that statistics cannot be used for the study of quality characteristics like health, beauty, honesty, welfare, poverty etc. which cannot be measured quantitatively. Even then the techniques of statistical analysis can be applied to qualitative phenomenon indirectly. We can assign them quantative standards or express them numerically. For example, attribute of intelligence in a group of individuals can be studied using ‘Intelligence Quotient’ (1Q) and it may be regarded as the quantitative measure of the individual's intelligence. YB 1.3.2. Statistics Falls to Cover (Study) Individuals * A-single item or figure cannot be regarded as statistics unless it is a part of any particular field of data. Thus statistical methods do not give any recognition to an object or a person or an event. For example, the price of a single commodity, the profit of a particular concern or the production of a particular business house do not make statistics because these figures are not comparable. * But the sum-total of figures relating to prices and consumption of various commodities, the sales and profits of a business house, the income, expenditure, production ete. over different places and different times will form statistics. + For example, the average income of a group of people of a particular state in some given year is of no meaning unless we are also given the figures of other groups in same year. © Thus statistics is based mainly to those problems where group characteristics are mentioned. % 1.3.3 Statistical Laws are not Exact + The statistical laws are based on probability inferences. Such inferences are approximate and not exact, as the mathematical or scientific inferences are. Statistical laws are more or less true only on the average. + For example, if we throw a die, the probability of getting a number say 5 is 2. That does not mean that if we throw a die 12 times, we will get number 5 two times. * We may get the same number 0, 1, 2, ..., 12 times. But, if we carry on the same experiment indefinitely, then we expect all the numbers to be equally spaced. (New Syllabus we academic year 21-22) (M6-76) Tb rech-neo Publications ....A SACHIN SHAH VentureQuantitative Analyeis (MU-Sem.6-Comp) (Introduction to Statistics) D %. 1.3.4 Statistics Is Liable to be Misused + Statistics neither proves nor disproves anything. It is merely a tool which, if righty used may prove to be useful but if misused by inexperienced, unskilled and dishoneg, statisticians might lead to dangerous conclusions. * According to Bowley, “Statistics only furnishes a tool though imperfect which i, dangerous in the hands of those who do not know its use and deficiencies”. Statistica) methods are the most dangerous tools in the hands of the inexpert. * The main point is that statistics deals with figures which are innocent in themselves and do not represent quality and can also be easily distorted, manipulated by Politicians, unskilled and dishonest workers, dishonest people for personal selfch motives. + - Thus the most significant limitution of statistics is that it must be used by experts. 1,4 STATISTICAL DATA-CLASSIFICATION ‘We mention below some definitions of classification. “Classification is the process of arranging data into sequences and groups according e their common characteristics, or separating them into different but related parts”, + Seerist. “A classification is a scheme for breaking a category into a set of parts, called classes according to some precisely defined differing characteristics possessed by all the elements of the category’. - Tuttle AM + Thus ‘classification’ is the arrangement of the data into different classes, which are!# be determined depending upon the nature, objectives and scope of the enquiry. * For example, the number of students registered in Pune University during thé academic year 2020-21 may be classified on the basis of the following criterion : @) Sex, (ii) Age, Gii) Religion, (iv) The state to which they belong, (v) Differett faculties : Engineering, Medical, Arts, Science, Law, Commerce ete. (vi) Heights * weights, (vii) Institution / College and so on. ‘+ The same data can be classified into different groups in a number of ways. That ® based on physical, mental or social characteristics. * The data in one class will be different from those of another class with respect to characteristic called the basis or criterion of classification. HAH vents” (New Syllabus wef academic year 21-22) (M6-76) [lal rech-Neo Publications ..A SACHIN S! Quantitative Ana °° Thus we ¢ restricted 1 ‘more bases * This techn cross-classi * For exampl ‘age, religion 1.4.1 Func Different (m @) Geographic ®) Condensati form. And i features cont @ Ie facititat comparisons @) It helps to s ‘more compar example, sex () It gives stat beterogencous similarities. 1 processing lke % 1.4.2 Reason = Data classificat for a variety of © Maintaining re objectives. In s be searchable a + For the purpose proper security copied. (New Syllabus wef acedQuan tive Analysis (MU-Sem.6-Comp) (Introduction to Statistics) 1) © * Thus we observe that to analyse any statistical data, classification need not be restricted to one criterion or basis only. So we classify the data with respect to two or more bases simultaneously. * This technique of dividing the given data into different classes is called cross-classification. © For example, the students in Pune University may be classified with respect to sex, age, religion and so on. % 1.4.1 Functions of Classification Different (modes or) functions of classification are : (1) Geographical classification : This is according to place, area or region. (2) Condensation of data : Classification presents the huge raw data in a condensed form, And it is easily comprehensible to the mind and also highlights the main features contained in the data. @) It facilitates comparigon : Classification allows us to make meaningful comparisons depending on the basis of classification. (4) It helps to study relationships : The classification of data with respect to two or more comparisons enables us to study the relationship between the two criterion. For example, sex of the students and faculty they join in the university. (6) It gives statistical treatment of the data : Classification arranges the huge heterogeneous data into relatively homogeneous groups according to their points of similarities. This way data is made more intelligible and useful. And further processing like tabulation, analysis and interpretation of data is possible. 1.4.2 Reasons for Data Classification + Data classification has improved significantly over tiine. Today, the technology is used for a variety of purposes, often in support of data security initiatives. + Maintaining regulatory compliance and to meet various other business or personal objectives. In some cases, data classification is a regulatory requirement, as data must be searchable and retrievable within specified timeframes. «For the purpose of data securities, data classification is a useful tactic that facilitates proper security responses based on the type of data being retiieved, transmitted or copied. (New Syllabus w.e.f academic year 21-22) (M6-76) [el rech-neo Publications ...A SACHIN SHAH VentureQuantitative Analysis (MU-Sem.6-Comp) (introduction to Statistios) Pg. 2 2 1.4.3 Types of Data Classification (D_ Data classification often involves a multitude of tags and labels that define the type 4, data, its confidentiality and its integrity. (2) Availability may also be taken into consideration in data classification processes, (8) Data’s level of sensitivity is often classified and it is based on varying levels importance or confidentiality, which then correlates to the security measures put j, place to protect each classification level. ‘WS 1.4.4 Three Main Types of Data Classification ‘These are considered as industry standards : @ Content : Content-based classification inspects and interprets files looking fir sensitive information, Gi) Context : Context-based classification looks at application, location or ereator amang other variables as indirect indicators of sensitive information. User : User-based classification depends on a manual, end-user selection of ex document. User-based classification relies on user knowledge and discretion a creation, edit, review or dissemination to flag sensitive’ documents. Content-context and user-baded approaches can be both right or wrong depending the business-need and data-type. ‘1.4.5 Determining Data Risk 7 + In addition to the types of classification, an organisation must determine the relatit risk associated with the types of data, how that data is handled and where it stored/sent (ond points) + Acommon practice is to separate data and ystems into three levels of risk. G) Low risk : If data is public and it is not easy to lose permanently (i.e. recovers ® easy), this data collection and the systems surrounding it aro likely a lower *# than others. (i) Moderate risk : Essentially, this data is not public or is not used inter (ie. by the organisation and/or partners). . ‘Also, it is also'not Likely to be critical to operations or sensitive to be of risk", Proprietary operating procedures, cost of goods and some com? documentation may fall into the moderate category. ‘* Gii) High risk : Anything remotely sensitive or erucial to operational secusit’ © {nto the high risk category. a — ot Ral rech-Neo Publications ..a SACHIN SHAH (new Syllabus academic year 21-22) (M6-76) _ Wine, * Many organisatis need 8 comprehe lasification mat: + Creating mats ‘compromised and classify beter and 23147 An examp + Anumber of diff One way to clas confidential, busi + Am organisation 0 ‘qualities it drills ¢ + For example, type certain character ‘geographic local + User classification 5] ata reclassificat Tes important for reassigning the value classification goals. ‘1.4.8 Regression ‘+ Both regression a When it eomes to classification algor + Forany system ths classification slo ‘ew Sylabus wer ocaer aeQuantitative Analysis (MU-Sem.6-Comp) (Introduction to Statistics) (1-13) Also, pieces of data that are extremely hard to recover (if lost). All confidential, sensitive and necessary data falls into a high risk category. %& 1.4.6 Using a Data Classification Matrix Creating and labelling data may be easy for some organisations. If there are not a large number of data types or perhaps your business has fewer transactions, determining the risk of data and your systems is likely less difficult. Many organisations dealing with high volume or multiple types of data are likely to need a comprehensive way of determining their risk. For this, many use a “data classification matrix’. Creating a matrix rating data and /or systems from how likely they are to be compromised and how sensitive that data is will help you to determine quickly how to classify better and to protect all things sensitive. 1.4.7. An example of Data Classification ‘A number of different category lists can be applied to the information in a system One way to classify sensitivity categories might include classes such as secret, confidential, business-use only and public. ‘An organisation might use a system that classifies information as based on the type of qualities it drills down into. For example, types of information might be content that goes into the files looking for certain characteristics. Context based classification examines applications, users, geographic location or creator about the application. User classification is based on what an end user chooses to create, edit and review. Data reclassification It is important for an organisation to continuously update the classification system by reassigning the values, ranges and outputs to more effectively meet the organisations classification goals. &\ 1.4.8 Regression Algorithm Versus Classification Algorithm Both regression and classification algorithms are standard data management styles. When it comes to organisation of data, the biggest difference between regression and classification algorithms fall within the type of expected output. For any system that will produce a single set of potential results within a finite range, classification algorithms are ideal. (New Syllabus w.ef academic year 21-22) (M6-76) [al rech.veo Publications ...A SACHIN SHAH Venture= Quantitative Analysis (MU-Sem.6-Comp) (Introduction to Statistics) Qeniehe te _{introduction to Statistics) Pg. No. (1-14) «When the results of an algorithm are continuous, such as an output of time or length ‘using a regression algorithm or linear regression algorithm is more efficient, % 1.4.9. Application Domains Classification has many applications. In some of these it is employed as a data mining procedures, while in others more detailed statistical modelling is undertaken. Q) Computer vision (a) Medical imaging and medical image analysis. (b) Optical character recognition. (©) Video tracking (2) Drug discovery and development (a) Toxico genomics (b) Quantitiative structure-activity relationship. (3) Geo-statisties (4) Speech recognition (6) Handwriting recognition (6) Biometric identification _ (Biological classification (8) Statistical natural language processing (@) Document classification (10) Internet search engines (1) Credit seoring (12) Pattern recognition. (1) Recommender system (14) Micro-array classification 1.4.10 Rules for Classification «Technically sound classification of the data in any statistical investigation deme" b the nature of the data and objectives of the enquiry. «But, consistent with the nature and objectives of the enquiry, the following gil principles may be observed for good classification. i) It should be unambiguous «The classes should be rigidly defined so that they should not lead € ¢ ambiguity, Thati, there should not be any room for doubt or confusion r=°™ the placement of the observations in the given classes (New Syllabus weef academic year 21-22) (M6-76) Tal rech-neo Publications ..A SACHIN wane’ —(Introduction to Stati * For example, if we have to classify a group of individuals as ‘employed’ and ‘un-omployed’, it is a must to define in clear terms as to what we mean by an ‘omployed person and unemployed person. (ii) It should be exhaustive and mutually exclusive © © Tho classes must be exhaustive in the sense that each and every item in the data must belong to one of the classes. A good classification must be free from residual class like others or miscellaneous because such classes do not reveal the characteristics of the data completely. «But if the classes are very large in number as is the case in classifying various commodities consumed by people in a certain locality, then it is necessary to introduce a residual class. «Also the various classes should be mutually disjoint or non-overlapping so that the observed value must belong to one and only one of the classes. + For example, if'we classify the students in a college as males, females and addicts to a particular drug then the classification is faulty because the group “addicts to a particular drug” includes both males and females. «In this case a proper classification will be with respect to two criteria, i.e. with respect to sex (males and females) and further dividing the students in each of these two classes into ‘addicts’ and non-addicts to the given drug. (iii) It should be stable «In order to have meaningful comparisons of the results, an ideal classification must be stable, ie., the same pattern of classification must be adopted throughout the analysis. + For example, in the census 1991, the population was classified with respect to profession was as under (a) Main activity : C is working [Cultivator (C), Agricultural labourer (AL), Household Industries (HEI), Other Works (OW). (b) Broad category : Non-worker [Houshold duties (H), student (ST), Renteer or Retired person (R); Dependent, Beggars, Institutions and others (DBIO)]. + Here, the results obtained in the two categories can be compared meaningfully. (iv) It should be suitable for the purpose + The classification must be in keeping with the objectives of the enquiry. + For example, if we want to study the relationship between the university education and sex, it is worthless to classify the students with respect to age and religion. (New Syllabus wef academic year 21-22) (M6-76) {EX Tech-Neo Publications ...A SACHIN SHAH VentureQuantitative Analysis (MU-Sem.6-Comp) 10 Statistics) ...Pg. 6) (v) It should be flexible * The good classification should be flexible so that it can be adjustable to the ney, and changed situations and conditions. * No classification is good enough to be used for ever : Changes in the classificatioy are necessary with the changes in time and changed circumstances. * But flexibility should not be resulted in instability of classification. The give, population must be classified into some major groups which more or less remain stable and allowing for adjustment due to changed circumstances or conditions * This can be done by sub-dividing these major groups into sub-groups or sub. classes which can be made flexible. « Hence, the classification can maintain the character of flexibility along with stability. 1.4.11 Bases of Classification ‘The criteria or the bases with respect to which the data are classified depends on the objectives and the purpose of the enquiry. Generally, the data can be classified on the following four bases : (i) Geographical i.e. Area wise or Regional. Gi) Chronological i.e. with respect to recurrence of time. Gii) Qualitative ie. with respect to some character or magnitude. (iv) Quantitative i We elaborate these one by one. 1.4.12 Geographical Classification ‘The basis of this classification is the geographical or locational differences betwe®? the various items in the data, like cities, Regions, Areas, Zones ete. For example, the density of the population in different cities of India, is given in following table : Density of population in different cities of India. (Per square kilometer) . with respect to numerical values or magnitudes. City __| Density of population Calcutta 710 ‘Mumbai 672 Delhi 451 Chennai 215 Chandigarh 87 . ——~st (New Sylabus wef academic year 21-22) (M6-76) [Sl tech-Neo Pubications _.a SACHIN SHAHY® _ti eC” {Introduction to Statistics) ...Pg. No. (1-17) Quantitative Analysis (MU-Sem.6-Comp) «Graphical classifications are presented according to size or values. This lays more emphasis on the important area or region. Y® 1.4.13 Chronological Classification Chronological classification is one in which the difference in time, e.g. the population of a given coun! ofa big business house over different years. the population of India for different decades. data are classified on the basis of try for different years, the profits « We mention Population of India (In crores) Year | Population 1931] 27.9 |1941] 319 1951] 36.1 1961 | 43.9 1971 | 54.8 1981 | 68.3 1991] 84.4 2] m3 | 2011} 122.7 2021} 132.8 ‘This time-series data occurs quite frequently in Economic and Business statistics and they are classified chronologically, starting with the first period of occurrence. % 1.4.14 Qualitative Classification When the data are qualitative i.e. which are not capable of quantitative measurement like intelligence, occupation, employment literacy etc. then the classification is called as qualitative or descriptive or with respect to attributes. © In qualitative classification the data are classified according to the presence or absence of the attributes in the given units. © If the data are classified into only two classes with respect to an attribute like its presence or absence among the various units, the classification is called as simple or (New Syllabus wef academic year 21-22) (M6-76) $4] Tech-Neo Publications ...A SACHIN SHAH Ventureis Quantitative Analysis (MU-Sem.6-Comp) riroauction to Saas) Pa. No. (ty dichotomous. Again, if the given population is classified into more than two a with respect to a given attribute, itis called as manifold classification. * For example, for the attribute intelligence the various classes can be : nase Population 2 as ae ow | [est | [Ese] [SS] 1.4.15 Quantitative Classification ‘+ Ifthe data are classified on the basis of quantitative measurement like age, heigh, weight, production, prices, income, sales, profits, expenditure ete. then it is termed a quantitative classification. ‘+ The quantitative phenomenon is called as variable and hence this classificatio also called as classification by variables. + For example, the earnings (daily) of different stores may be classified as : Daily earnings (in 100 rupees) of 60 Departmental stores : Daily earnings | Number of stores Upto 100 101-200 201-800 301-400 401-500 1501-600 601-700 701-800 wlalalelole/g|s + In the above classification, the daily earnings of the stores are tormed as variablt ‘and the number of stores in each class as the frequency. «The above classification is also called as grouped frequency distribution. "© Variable + ‘The quantitative phenomenon under study is termed as variable or a variate . Vv (@ Continuous variable (ii) Discrete variable (Discontinuous variable) bles are of two types : vet (New Syllabus wef academic year 21-72) (M6-76) [ES] rech.neo Publications _.a SACHIN SHA Seana Ana o ‘Continuous vari + Movarahes ‘given specified * Forexample, * Precisely, a vs fivenvaluet i) Discrete variabl + The variable + For example, ‘mistakes per >1_1.5_TABULAT By Tabulation is the data, in rows AM. Tuttle has de “A statistical tab columns and hor words, phrases an the full meaning Professor Bowley “The intermestiat are obtained and ¢ ‘Tabulation is one sand comprehensi Ie tries to make ¢ possible space and ‘According to prof. «In the tabulatio chief teacher” (wew sylabus wef cade FSS