Scope of Statistics in Economics

Statistical tools and methods have wide applicability across various fields. The following are the Scope of Statistics

Scope of Statistics

Statistics and business: Business firms use statistics to study market fluctuations and various other relationships such as those between the price of a product and the demand for the same. Statistical methods are used to carry out market surveys on various matters. Statistical tools like analysis and interpretation of data are used for managing a business on various grounds such as production, quality, and cost control.

Statistics and government: Statistics prove highly useful in the effective functioning of the state. Various policies and plans of the government are formed on the basis of statistical facts and figures. Plans and policies regarding matters such as poverty, unemployment, and population cannot be formed without the availability of suitable statistical data.

Statistics and natural sciences: Statistical techniques play a vital role in the study of natural sciences such as medicine, biology, and botany. For example, in medicine, the diagnosis of a disease depends on data such as pulse rate and blood pressure. Similarly, statistical tools are used to carry out research on the success or failure of a drug.

Statistics and research: Statistical data is a significant input to conduct various researches. Researchers undertake researches for studying different relationships between different variables; for example, price and demand, poverty and health, etc.

Statistics and other fields: Statistics is also applied in other fields such as banking, insurance, and trade. For example, the interest rate to be charged on loans is decided on the basis of a survey on the probability of repayment of loans.

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Relationship between Economics and Statistics

The study of economics depends heavily on statistical tools and methods. In this article, we will explore the interrelationship between economics and statistics.