STATISTICS FOR MANAGEMENT
Session – 1 Duration: 1 hr
Meaning of Statistics
The term statistics mean that the numerical statement as well as statistical methodology. When it is used in the sense of statistical data it refers to quantitative aspects of things and is a numerical description.
Example: Income of family, production of automobile industry, sales of cars etc. These quantities are numerical. But there are some quantities, which are not in themselves numerical but can be made so by counting. The sex of a baby is not a number, but by counting the number of boys, we can associate a numerical description to sex of all newborn babies, for an example, when saying that 60% of all live-born babies are boy. This information then, comes within the realm of statistics.
The word statistics can be used is two senses, viz, singular and plural. In narrow sense and plural sense, statistics denotes some numerical data (statistical data). In a wide and singular sense statistics refers to the statistical methods. Therefore, these have been grouped under two heads – ‘Statistics as a data” and “Statistics as a methods”.
Statistics as a Data
Some definitions of statistics as a data are
a) Statistics are numerical statement of facts in any department of enquiring placed in relation to each other.
b) By statistics we mean quantities data affected to a marked extent by multiple of causes.
- Yule and Kendall
c) By statistics we mean aggregates of facts affected to a marked extent by multiplicity of causes, numerically expressed, enumerated or estimated according to reasonable standard of accuracy, collected in a systematic manner for pre-determined purpose and placed in relation to each other.
- H. Secrist
This definition is more comprehensive and exhaustive. It shows light on characteristics of statistics and covers different aspects.
Some characteristics the statistics should possess by H. Secrist can be listed as follows.
➢ Statistics are aggregate of facts
➢ Statistics are affected to a marked extent by multiplicity of causes.
➢ Statistics are numerically expressed
➢ Statistics should be enumerated / estimated
➢ Statistics should be collected with reasonable standard of accuracy
➢ Statistics should be placed is relation to each other.
Statistics as a method
a) “Statistics may be called to science of counting”
- A.L. Bowley
b) “Statistics is the science of estimates and probabilities”.
c) Dr. Croxton and Cowden have given a clear and concise definition.
“Statistics may be defined as the collection, presentation, analysis and interpretation of numerical data”.
According to Croxton and Cowden there are 4 stages.
a) Collection of Data
A structure of statistical investigation is based on a systematic collection of data. The data is classified into two groups
i) Internal data and
ii) External data
Internal data are obtained from internal records related to operations of business organisation such as production, source of income and expenditure, inventory, purchases and accounts.
The external data are collected and purchased by external agencies. The external data could be either primary data or secondary data. The primary data are collected for first time and original, while secondary data are collected by published by some agencies.
b) Organisations of data
The collected data is a large mass of figures that needs to be organised. The collected data must be edited to rectify for any omissions, irrelevant answers, and wrong computations. The edited data must be classified and tabulated to suit further analysis.
c) Presentation of data
The large data that are collected cannot be understand and analysis easily and quickly. Therefore, collected data needs to be presented in tabular or graphic form....