Meaning, Definition and

Scope of Statistics
• Statistics is the science concerned with developing and studying
methods for collecting, analyzing, interpreting and presenting
empirical data.
• Statistics is concerned with scientific methods for collecting,
organising, summarising,presenting and analysing data as well as
deriving valid conclusions and making reasonable decisions on the
basis of this analysis.
• Statistics are numerated or estimated according to reasonable
standard of accuracy.
• The figures should be counted or estimated according to reasonable
standards of accuracy.
 Definitions
• A.L. Bowley defines - “Statistics may be called the science of counting”.
“Statistics may be called the science of averages”. 
• According to King - “The science of statistics is the method of judging
collective, natural or social, phenomenon from the results obtained
from the analysis or enumeration or collection of estimates”.
• Croxton & Cowden - “Statistics may be defined as the collection,
presentation, analysis and interpretation of numerical data”.
 Business statistics
• Business statistics refers to the application of statistical tools, theories,
and methodologies to help solve real-world business problems and
make data-driven decisions. From marketing to finance, HR to
operations – statistics plays a crucial role across all key business
functions.
• it signifies the application of statistical methods, theories, and tools to
extract relevant quantitative business insights and patterns from raw
data that can facilitate and enhance management decision making. It
involves a systemic process right from data acquisition to analysis
which enables business leaders formulate evidence-based policies,
solve problems, measure performance, identify risks, spot
trends/opportunities, allocate resources efficiently and make reliable
forecasts.
 Scope of Business Statistics

• The scope refers to the different areas and techniques that come
under business statistics. It is a vast field encompassing many tools for
data analysis. The goal is to drive business insights.
 1. Statistics helps in Economic Planning

All economic plans of a formulated on the basis of statistical

data. The success of the plan is also evaluated with the help of
statistics. Economic problems such as production,
consumption, wages, price profits, unemployment, poverty,
etc. can be expressed numerically
 2. Statistics in business management

Statistics are very useful to businessmen. It helps businessmen

in formulating policies regarding business and forecasting
future trends.
3. Statistics in Administration
Efficient administration cannot be perceived without statistics.
Statistics have been used from the time of origin of statistics to
collect information regarding the military and fiscal policies.
 4. Statistics in Accountancy and Auditing.

Accountancy and Auditing have not escaped its domain. The

ever-increasing applications of the statistical data and the
advanced statistical techniques in Accountancy and Auditing
are well supported by the inclusion of a compulsory paper on
Statistics both in Statistics has innumerable applications in
accountancy and auditing.
For example the statistical data on some macro-variables like
income, expenditure, investment, profits, production, savings,
etc., are
 5. Statistics in reasearch

Statistical methods are extensively used in every type of research

work. Whether it is agriculture, health, or social science, the
statistics help in carrying out different types of researches.
6. Statistics in Industry
In industry, Statistics is extensively used in ‘Quality Control’.
The main objective in any production process it 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.
7. Statistics in Social Sciences.
According to Bowley, “Statistics is the science of the
measurement of social organism, regarded as a whole in all its
manifestations.” In the words of 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
enumeration or collection of estimates.”
8. Statistics in Psychology and Education.
Statistics has been used very widely in
education and psychology too e.g., in the scaling
of mental tests and other psychological data; for
measuring the reliability and validity of test
scrores ; for determing the Intelligence Quotient
(I.Q.) ; in Item Analysis and Factor Analysis.
The vast applications of statistical data and statistical theories
have given rise to a new discipline called ‘Psychometry’.
9. Statistics in Biology and Medical Sciences
The whole problem of evolution is a problem of vital statistics,
a problem of longevity, fertility, health, disease and it is
impossible for the evolutionist to proceed without statistics as
it would be for the Registrar. General to discuss the rational
mortality without an enumeration of the population, a
classification of deaths and a knowledge of statistical theory.
 Limitations of Statistics

• Statistics does not study qualitative aspect

• Statistics does not deal with individuals
• Statistics results are not perfectly accurate
• Data must be uniform in statistics
• Statistics can be misused
 Data Collection
• Data collection is the process of collecting and evaluating information
or data from multiple sources to find answers to research problems,
answer questions, evaluate outcomes, and forecast trends and
probabilities. It is an essential phase in all types of research, analysis,
and decision-making, including that done in the social sciences,
business, and healthcare.
• During data collection, researchers must identify the data types, the
sources of data, and the methods being used. We will soon see that
there are many different data collection methods. Data collection is
heavily reliance on in research, commercial, and government fields.
• Primary and secondary methods of data collection are two approaches
used to gather information for research or analysis purposes.
 Methods of Data collection
1. Primary Data Collection
The first techniques of data collection is Primary data collection which
involves the collection of original data directly from the source or through
direct interaction with the respondents. This method allows researchers
to obtain firsthand information tailored to their research objectives. There
are various techniques for primary data collection, including:
a. Surveys and Questionnaires: Researchers design structured s in a
moderated setting. This method helps in understanding the opinions,
perceptions, and experiences shared by the participants.
b. Interviews: Interviews involve direct interaction between the
researcher and the respondent. They can be conducted in person, over the
phone, or through video conferencing. Interviews can be structured (with
predefined questions), semi-structured (allowing flexibility), or
unstructured (more conversational).

c. Observations: Researchers observe and record behaviors, actions, or

events in their natural setting. This method is useful for gathering data on
human behavior, interactions, or phenomena without direct intervention.
d. Experiments: Experimental studies involve manipulating variables to
observe their impact on the outcome. Researchers control the conditions
and collect data to conclude cause-and-effect relationships.

e. Focus Groups: Focus groups bring together a small group of individuals

who discuss specific topics in a moderated setting. This method helps in
understanding the opinions, perceptions, and experiences shared by the
participants.
 2. Secondary Data Collection

The next techniques of data collection is Secondary data collection which

involves using existing data collected by someone else for a purpose
different from the original intent. Researchers analyze and interpret this
data to extract relevant information. Secondary data can be obtained from
various sources, including:

a. Published Sources: Researchers refer to books, academic journals,

magazines, newspapers, government reports, and other published
materials that contain relevant data.
b. Online Databases: Numerous online databases provide access to a
wide range of secondary data, such as research articles, statistical
information, economic data, and social surveys.
c. Government and Institutional Records: Government agencies,
research institutions, and organizations often maintain databases or
records that can be used for research purposes.
d. Publicly Available Data: Data shared by individuals, organizations, or
communities on public platforms, websites, or social media can be
accessed and utilized for research.
e. Past Research Studies: Previous research studies and their findings
can serve as valuable secondary data sources. Researchers can review and
analyze the data to gain insights or build upon existing knowledge.
 Classification of Data

The collected data, also known as raw data or ungrouped data are always
in an un organised form and need to be organised and presented in
meaningful and readily comprehensible form in order to facilitate further
statistical analysis. It is, therefore, essential for an investigator to
condense a mass of data into more and more comprehensible and
assimilable form.
The process of grouping into different classes or sub classes according to
some characteristics is known as classification, tabulation is concerned
with the systematic arrangement and presentation of classified data. Thus
classification is the first step in tabulation.
For Example, letters in the post office are classified according to their
destinations viz., Delhi, Madurai, Bangalore, Mumbai etc.,
 Types of classification:
Statistical data are classified in respect of their characteristics. Broadly
there are four basic types of classification namely
a) Chronological classification
b) Geographical classification
c) Qualitative classification
d) Quantitative classification
a) Chronological classification:
In chronological classification the collected data are arranged according to
the order of time expressed in years, months, weeks, etc.,
• The data is generally classified in ascending order of time.

• The estimates of birth rates in India during

b) Geographical classification:
In this type of classification the data are classified according to geographical
region or place. For instance, the production of paddy in different states in
Iraq, production of wheat in different countries etc.,
 c) Quantitative classification:

• Quantitative classification refers to the classification of data according to

some characteristics that can be measured such as height, weight, etc., For
example the group of a children may be Classified according to weight as
given below.
 Quantitative Data (Numerical Data)

• Quantitavive Data is the type of the data that represents the numerical
value of the data. They are also called the Numerical Data. This data type
is used to represent the height, weight, length and other things of the data.
Quantitative data is further classified into two categories that are,
Discrete Data
Continuous Data
 Discrete Data

• Discrite data type is a type of data in statistics that only uses Discrete Value
or Single Values. These data types have values that can be easily counted
as whole numbers. The example of the discreate data types are,
• Height of Students in a class
• Marks of the students in a class test
• Weight of different members of a family, etc.
 Continuous Data

• Continuous data is the type of the quantitative data that represent the data
in a continuous range. The variable in the data set can have any value
between the range of the data set. Examples of the continuous data types
are,
• Temperature Range
• Salary range of Workers in a Factory, etc.
 d) Qualitative classification:
In this type of classification data are classified on the basis of same attributes
or quality like sex, literacy, religion, employment etc.,
Such attributes cannot be measured along with a scale. For example, if the
population to be classified in respect to one attribute, say sex, then we can
classify them into two namely that of males and females. Similarly, they can
also be classified into ‘married or ‘ single’ on the basis of another attribute
‘marital status’. Thus when the classification is done with respect to one
attribute, which is dichotomous in nature, two classes are formed,
 Qualitative Data
In qualitative classifications, the data are classified according to the presence
or absence of attributes in given units. Thus, the classification is
based on some quality characteristics / attributes.
Ex: Gender, Literacy, Education, Class grade etc.
Further, it may be classified as
a) Simple classification b) Manifold classification
Simple classification: If the classification is done into only two classes then
classification is known as simple classification.
Ex: a) Population in to Male / Female
b) Population into Educated / Uneducated
 Manifold classification:

• In this classification, the classification is based on more than one attribute

at a time.

Population

Smokers Non-smokers

Literate Illiterate Literate Illiterate

Male Female Male Female

Male Female Male Female

 Tabulation of Data

Tabulation may be defined as systematic arrangement of data is column and

rows. It is designed to simplify presentation of data for the purpose of
analysis and statistical inferences.
A process of presenting data collected in rows and columns. A table is a
systematic arrangement of statistical data in rows and columns. Rows are
horizontal arrangements, whereas columns are vertical arrangements.
 Major Objectives of Tabulation

• To simplify the complex data

• To facilitate comparison
• To economise the space
• To draw valid inference / conclusions
• To help for further analysis
Parts of table:
1. Table Number
2. Title of Table
3. Caption (Colum Heading)
4. Stubs (Rows Heading)
5. Body
6. Sub Total & General Total
7. Head note (Brief explanatory statement, enclosed in brackets and placed
below the title)
8. Foot Notes (They are used to mention as explanations for some ambiguous
terms used in the table)
9. Source Notes (They are used to mention the source of data especially in
case of secondary data.
 Graphs and diagrams

A diagram is a visual form for presentation of statistical data.

Diagrams refer to the various types of such as bars, circles, maps, pictorials,
cartograms.
Types of Diagrams. A large variety of diagrammatic devices are used in
practice to present statistical data. However, we shall discuss here only some
of the most commonly used diagrams which may
be broadly classified as follows :
(1) One-dimensional diagrams viz., line diagrams and bar diagrams.
(2) Two-dimensional diagrams such as rectangles, squares, and circles or pie
diagrams.
(3) Three-dimensional diagrams such as cubes, spheres, prisms, cylinders and
blocks.
(4) Pictograms.
(5) Cartograms.
 Presentation of data: Graphs and diagrams

A graph is a visual form of presentation.

Classification of Graphs
• Based on Frequency Distribution
1. Histogram
2. Frequency Polygon
3. Frequency Curve
4. Ogives or Cumulative Frequency Curve
• Based on Time-Series
1. Nature Scale Method
2. Ratio Scale Method

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