Statistics for Management

Topics: Sampling, Statistics, Sample Pages: 10 (3106 words) Published: February 6, 2013
Master of Business Administration- MBA Semester 1
MB0040 – Statistics for Management
Assignment Set - 1
Q1. Define “Statistics”. What are the functions of Statistics? Distinguish between Primary data and Secondary data. Answer: Statistics: Statistics as a discipline is considered indispensable in almost all spheres of human knowledge. There is hardly any branch of study which does not use statistics. Scientific, social and economic studies use statistics in one form or another. These disciplines make-use of observations, facts and figures, enquiries and experiments etc. using statistics and statistical methods. Statistics studies almost all aspects in an enquiry. It mainly aims at simplifying the complexity of information collected in an enquiry. It presents data in asimplified form as to make them intelligible. It analyses data and facilitates drawal of conclusions. Important functions of statistics:

Presents facts in simple form: Statistics presents facts and figures in a definite form. That makes the statement logical andconvincing than mere description. It condenses the whole mass of figures into a singlefigure. This makes the problem intelligible. Reduces the Complexity of data: Statistics simplifies the complexity of data. The raw data are unintelligible. We make themsimple and intelligible by using different statistical measures. Some such commonly usedmeasures are graphs, averages, dispersions, skewness, kurtosis, correlation and regressionetc. These measures help in interpretation and drawing inferences. Therefore, statisticsenables to enlarge the horizon of one's knowledge. Facilitates comparison: Comparison between different sets of observation is an important function of statistics. Comparison is necessary to draw conclusions as Professor Boddington rightly points out.” the object of statistics is to enable comparison between past and present results to ascertainthe reasons for changes, which have taken place and the effect of such changes in future. Soto determine the efficiency of any measure comparison is necessary. Statistical devices likeaverages, ratios, coefficients etc. are used for the purpose of comparison. Testing hypothesis: Formulating and testing of hypothesis is an important function of statistics. This helps indeveloping new theories. So statistics examines the truth and helps in innovating new ideas. Formulation of Policies: Statistics helps in formulating plans and policies in different fields. Statistical analysis of data forms the beginning of policy formulations. Hence, statistics is essential for planners,economists, scientists and administrators to prepare different plans and programmes. Forecasting: The future is uncertain. Statistics helps in forecasting the trend and tendencies. Statisticaltechniques are used for predicting the future values of a variable. For example a producerforecasts his future production on the basis of the present demand conditions and his pastexperiences. Similarly, the planners can forecast the future population etc. considering thepresent population trends. Derives valid inferences: Statistical methods mainly aim at deriving inferences from an enquiry. Statistical techniques are often used by scholars’ planners and scientists to evaluate different projects. These techniques are also used to draw inferences regarding population parameters on the basis of sample information. Statistics is very helpful in the field of business, research, Education etc., some of the uses of Statistics are: Statistics helps in providing a better understanding and exact description of aphenomenon of nature. Statistics helps in proper and efficient planning of a statistical inquiry in any field of study. Statistical helps in collecting an appropriate quantitative data. Statistics helps in presenting complex data in a suitable tabular, diagrammatic andgraphic form for any easy and comprehension of the data. Statistics helps in understanding the nature and pattern of...
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