Statistics refers to the aggregates or averages that relate to certain inquiries or relationships. The following are some of the important functions of statistics.
Functions of Statistics
Presents data in a simplified form: With the help of statistical tools, large and complex data can be presented in a simple and understandable form. For example, consider data on the incomes of various families in a region. In itself, it is difficult to understand and interpret, but it becomes comprehensible when presented in the form of averages or some such measure
Gives a definite form to the facts: Statistics allows the conclusions of research or study to be presented in numerical form. This gives the conclusions a definite quality.
Facilitates comparison: Data can be easily compared using statistical tools such as averages, percentages, and ratios. Comparison of data helps us in drawing important economic conclusions. For instance, a comparison of the average incomes in rural areas and in urban areas helps us in drawing conclusions relating to regional inequality in income.
Guides in the formulation of theories and policies: Policies on various economic matters such as wages and prices are formed on the basis of statistical data. Statistics forms the basis for the formulation and testing of theories. For example, policies for improvement in agricultural production can be formed with the help of statistical data relating to the production of various crops in different regions.
Helps in forecasting: Statistical techniques help in forecasting and predicting the future behavior of various variables such as market situations.
Statistics refers to the aggregates or averages that relate to certain inquiries or relationships. The meaning of statistics can be understood in two ways: in the plural sense and in the singular sense.
Statistical tools and methods have wide applicability across various fields. The following are the Scope of Statistics. Business firms use statistics to study market fluctuations