University School of Business

BA-ECONOMICS
SUBJECT NAME: Statistical Methods
SUBJECT CODE: 24SET-113

Dr. Aman Jindal

ASSOCIATE PROFFESOR

TOPIC OF PRESENTATION
BASIS OF STATISTICS DISCOVER . LEARN . EMPOWER
Course After undergoing this Course, the students will be
Outcome able:
CO1 To understand the key concepts and principles of applied
statistics.
CO2 To apply the tools of applied statistics and develop application
of models.
CO3 To analyse the tools of applied statistics in Economics.

CO4 To illustrate the concept of probability, operations research, time

series and index numbers.

CO5 To developed statistical models for industrial application.

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⚫Definition (Descriptive statistics)
⚫ The part of statistics concerned with the description and summarization of data is
called descriptive statistics

⚫For example:

Tables or graphs are used to organize data, and descriptive values such as
the average score are used to summarize data.

⚫ A descriptive value for a population is called a parameter and a descriptive value

for a sample is called a statistic.

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Inferential
Statistics
•
Definition (inferential statistics)
• The part of statistics concerned with the drawing of conclusions from data is called inferential
statistics
• When the experiment is completed and the data are described and summarized, we hope to be
able to draw a conclusion about the efficacy of the drug.

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Application Areas of
Statistics
⚫ In the early 20th century, two of the most important areas of applied statistics were population biology and
agriculture .
⚫ Nowadays the ideas of statistics are everywhere.
⚫ Descriptive statistics are featured in every newspaper and magazine.
⚫ Statistical inference has become indispensable.
⚫ to public health and medical research,
⚫ to marketing and quality control
⚫ to education,
⚫ to accounting
⚫ to economics
⚫ to meteorological forecasting
⚫ to polling and surveys
⚫ to sports,
⚫ to insurance
⚫ to gambling and
⚫ to all research that makes any claim to being scientific.

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Scope and importance of
Statistics
⚫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.

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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.

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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 disease and the result of application various drugs and
medicine are of great importance.

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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.”

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 Statistics in business and
management
1 Marketing: Statistical analysis are frequently used in providing information for making decision in
the field of marketing it is necessary first to find out what can be sold and then to evolve suitable
strategy, so that the goods which to the ultimate consumer. A skill full analysis of data on production
purchasing power, man power, habits of competitors, habits of consumer, transportation cost should
be consider to take any attempt to establish a new market.
2.Production: In the field of production statistical data and method play a very important role. The
decision about what to produce? How to produce? When to produce? For whom to produce is based
largely on statistical analysis.
3. Finance: The financial organization discharging their finance function effectively depend very
heavily on statistical analysis of peat and tigers.

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 Statistics in business and
management
3.Banking: Banking institute have found if increasingly to establish research department within
their organization for the purpose of gathering and analysis information, not only regarding
their own business but also regarding general economic situation and every segment of
business in which they may have interest.
4.Investment: Statistics greatly assists investors in making clear and valued judgment in his
investment decision in selecting securities which are safe and have the best prospects of
yielding a good income.
5.Purchase: the purchase department in discharging their function makes use of statistical data
to frame suitable purchase policies such as what to buy? What quantity to buy? What time to
buy? Where to buy? Whom to buy?

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6. Accounting: statistical data are also employer in accounting particularly in auditing function, the
technique of sampling and destination is frequently used.

7.Control: the management control process combines statistical and accounting method in making the
overall budget for the coming year including sales, materials, labor and other costs and net profits and
capital requirement.

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 Limitations of
Statistics
• Statistics laws are true on average. Statistics are aggregates of facts. So single observation
is not a statistics, it deals with groups and aggregates only.

• Statistical methods are best applicable on quantitative data.

• Statistics cannot be applied to heterogeneous data.

• It sufficient care is not exercised in collecting, analyzing and interpretation the

data,
statistical results might be misleading.

• Only a person who has an expert knowledge of statistics can handle statistical
data efficiently.

• Some errors are possible in statistical decisions. Particularly the inferential

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statistics involves certain errors. We do not know whether an error has been committed or
References

TEXT BOOKS/REFERENCE BOOKS

TEXTBOOKS
T1 Statistics for Management by G.C. Beri. Tata McGraw Hills Publishing Company Ltd., New Delhi
T2 Croucher, J. 2017. Statistics: Making Business Decisions, 13thEdition, Tata McGraw Hill, ISBN: 9780074710419.
T3 Levine, D., Sazbat, K. and Stephan, D. 2013. Business Statistics, 7thEdition, Pearson Education, India, ISBN: 9780132807265

REFERENCE BOOKS
R1 Business Statistics by Amir D. Aczel and J. Sounderpandian. Tata McGraw Hill Publishing Company Ltd., New Delhi.
R2 Gupta, C. and Gupta, V. 2004. An Introduction to Statistical Methods, 23rdEdition, Vikas Publications, India, ISBN: 9788125916543
R3 Statistics for Management by Richard I. Levin and David S. Rubin. Prentice Hall of India Pvt. Ltd., New Delhi
ASSESSMENT PATTERN
 THANK YOU

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