Statistics is a discipline that is developing with every passing day. The last few centuries have seen a remarkable advancement in this field with various useful theorems brought forth by the Statisticians. Statistics also has a vast implementation in many fields. In this article we will be discussing the subject Statistics in details. Go through it very nicely to understand each and everything about Statistics minutely.
How can the term ‘Statistics’ be defined?
Statistics finds a series of definition that has been assigned from time unknown to it. There have been many ways in which the experts defined this word statistics in the past. And even now also, statisticians are adding new meaning to this subject. Here we will discuss some of the very relevant definitions of the word statistics that will help you understand the meaning of it better.
Statistics was defined as the science of the kings by the ancient rulers as they used it extensively. Kings would conduct procedures for counting the number of people residing in their kingdom. They would also find out various important data about their people like birth rate, death rate, etc. This was surely a good implementation of Statistics that was witnessed centuries ago.
The term Statistics was defined as the science of counting as it helps in the counting process of various things. For a common man statistics was completely related to counting things and that is how they perceive it. Statistics helped them count the number of people, trees, animals, etc around them. But today the subject has been integrated with various intricate theorems that have added more value to it.
Statistics can also be said the science of averages and this is because an area of this subject deals with it. Statisticians use various formulas of statistics to calculate the average birth rate, death rate, and increase in population in a particular region. They also find out the average income of people per capita, rate of development, rate of inflation, rate of literate people, etc in a given area. But statistics cannot be only limited to a finding of average as you can also measure variation, correlation, etc using the subject.
Some define the subject as the science of estimation and probabilities as these two find a lot of place in the whole subject. A major part of statistics is all about estimating values and finding out the probability of the occurrence of an event. But there is a part in this subject where the application of probability cannot be witnessed.
In today’s modern world, the term Statistics can be perfectly defined as the numerical statement of facts that can be analyzed and interpreted. The study of statistics is related to all the methods, formulas, and principles that are applied in gathering, presenting, evaluating, and interpreting the data that has been collected in the process.
What are the uses of Statistics?
Statistics has a huge amount of uses in various fields of our life. It helps us in understanding the different phenomena of nature. Statistics helps us in collecting various data and evaluating them in the most efficient manner. Each and every survey held today is mostly dependant on the subject statistics as the different methods used are all based on this subject. The process of evaluating these data also takes place using various theorems of statistics.
The collection of appropriate quantitative data would not have been possible without the help of the various principles related to statistics. All the data that are very complex and out of the understanding capability of the common man can be simplified using this subject. These complex data can be represented in the form of tables, diagrams, or graphs that can be understood easily by everyone.
Statistics helps us the variation taking place in various events. The nature of the variation and its pattern can be determined by closely observing the quantitative data related to it. You can also draw correct inference from data related to a vast population using the principles of statistics.
How can you define the various types of Statistical Data?
A data that is related to the series of observations carried out on those objects which are found in a sample taken from a population is called Statistical Data. It can be of two types; grouped data and ungrouped data. The data that is just arranged in a particular order after collection is termed as ungrouped data or raw data. When these data are arranged in a systematic order that represents the frequency of the distribution then they are called grouped data.
What does a collection of data mean?
For conducting any survey or investigation, the first step is to collect the required data that is related to the whole procedure. This is termed as a collection of data in statistics. You may have to collect data that is related to the whole population or it can be restricted to a particular sample.
Collection of data should not be considered as an easy task as there are a lot of things that are related in the whole process. The person who is collecting these data is called the investigator, surveyor, or enumerator. From whom these data are collected is termed as the respondent. Without the co-operation and help of a respondent it would be very difficult for an enumerator to collect data. The enumerator is extremely well-trained and he knows all the basic principles of the data collection process very well.
There are two types of sources for collecting the two types of data; they are primary data and secondary data.
Primary data are those fresh data that are collected by an enumerator. These types of data are extremely raw as they are not processed using any principle of statistics. A population census report is an example of primary data that are collected by an organization.
Primary data can be collected by employing various methods. The most common method is a personal investigation in which the researchers themselves investigate various places and collect data. Any small research work employs this type of personal investigation method as the data collection process is limited to a small amount of place.
Large-scale investigation procedure is involved in bigger research projects. In this investigation process, a team of trained investigators is employed in collecting data. They travel to a large number of locations and collect valuable information that will be required for evaluation.
The second-hand data are called secondary data and they are already present in the database of an organization. These types of data have been previously collected by that organization for some purpose and they are also used later for some other evaluation. These secondary data loses its freshness as certain principles of statistics have already been applied to them. For example, the economic survey of any country can be termed as secondary data as there are many organizations that have been collecting these data time and again.
Secondary data can be collected from various journals that have been published previously. Newspapers,official documents, government records, etc can also provide this type of data.
Drawbacks of Statistics
Statistics is surely a very important subject that helps us in a lot of ways. But there are a lot of limitations that can be found in this subject. The first most important drawback is the fact that statistics entirely deals with an average of data. A single observation or a single piece of data cannot determine statistics. You will be required to collect a group of data and then aggregate it to find out the exact result.
The theories of this subject can be only applied to quantitative data only. They cannot be applied to heterogeneous data by any means. You should be very careful while collecting and evaluating data as a small mistake would bring out a completely wrong result. This can mislead the whole investigation process. As statistics is mainly dependent on the collection of data, therefore, the utmost care should be given and precautions should be taken while conducting the process.
Another major drawback of statistics is that a person needs to have a detailed knowledge of the various principle of the subject to handle data efficiently. Therefore anyone who is not an expert in the subject cannot handle the data at all as he will not be able to understand them. There are also various errors that can take place while taking a statistical decision but they are very hard to detect.
Importance of Statistics in various fields
Statistics has got a lot of importance in our daily lives as it helps in determining many things. Each and every survey held in a country has various principles of statistics integrated within it.From school, colleges to medical facilities, implementation of statistics is evident everywhere.
This subject holds an integral place in almost all fields of our life. You can find statistics in industries, trades, chemistry, physics, mathematics, biology, economics, astronomy, engineering, etc. Here we shall discuss some of those fields where statistics finds a large amount of application.
This subject is majorly dependent on statistics as various principles of statistics are employed in economics. All those accounts that are related to the income of a country are prepared by economists by applying various theorems and formulas of statistics.The relationship between supply and demand of materials, imports, and exports can be evaluated using statistical principles.
A businessman can be successful only if he is able to take the right decision at the right time. And this process of decision making can be guided properly by using various principles of statistics. A business owner can plan his production procedure by understanding the requirements of his buyers. This can be done by carrying out an effective survey and then evaluating those data using statistical methods.
Statistics is a core part of mathematics. Various types of measurements recorded in mathematics can be recorded more accurately if principles of statistics can be implied. In fact, the subject of applied mathematics has an entire branch dedicated to statistics. Various methods of statistics like probability, average, estimation, etc are extensively used by mathematicians in their everyday’s evaluation.
Astronomy and statistics are related to each other since ancient times. Distance between our earth and the large celestial objects residing in the universe can be calculated using formulas of statistics. Other important values of mass, size, and density of these heavenly bodies are also calculated by evaluating the series of observations that have been recorded.
Each and every survey that is held in a country determines the various policies of it. These surveys cannot be conducted efficiently if various principles of statistics are not applied to them. The administrative system of a country is entirely dependent on the statistical data that are collected in various surveys. It can also be concluded that the economy of a country is also dependent on those statistical data.
- Banking sector
Banks are hugely dependent on various methods of statistics for many reasons. Different theories of probability are applied by a banker in calculating the deposits and withdrawal of money by their clients. This determines the profit earned by that bank.
The field of accountancy demands accuracy and approximation which can be achieved by applying various principles of statistics. As statistics demands accuracy, thus all those calculations based on this subject will also reflect exactness.
It is very important to learn the subject statistics thoroughly to succeed in it in the future. It is surely not an easy subject but profound knowledge along with dedication can make things work out very easily.
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