Monday, November 5, 2012

Introduction to Statistics (Chapter One)


Functions of Statistics:

·        Definiteness
·        Condensation
·        Comparison
·        Formulating and testing hypothesis
·        Prediction
·        Formulation of policies

Statistics in Business and Management:

·        Marketing
·        Production
·        Finance
·        Banking
·        Investment
·        Purchase
·        Accounting
·        Control
·        Credit
·        Personnel
·        Research and Development

Importance of Statistics:

·        Statistics helps for human welfare
·        Determines statistical policy
·        To aid in planning
·        Administrative helps
·        To help science
·        Marketing
·        Investment
·        Accounting
·        Research and Development

Limitation of Statistics:

·        Statistics does not deal with isolated measurement
·        Statistics deals only with quantitative characteristics
·        Statistical results are true only on an average
·        Statistics is only a means
·        Statistics can be misused

Statistics and economics:

·        Measures of gross national product and input-output analysis have greatly advanced overall economic knowledge and opened up entirely new fields of study.
·        Financial statistics are basic in the fields of money and banking short term credit, consumer finance and public finance.
·        Statistical studies of business cycles, long-term growth and seasonal fluctuations serve to expand our knowledge of economic instability and to modify them from time to time.
·        Studies of competition, oligopoly and monopoly require statistical comparisons of market prices, cost and profits of individual firms.
·        Statistical surveys of prices are essential in studying the theories of prices, pricing policy and price trends, as well as their relationship to the general problem of inflation.
·        Operational studies of public utilities require both statistical and legal tools of analysis.
·        Analysis of population, land economics and economic geography are basically statistical in their approach.
·        In solving various economic problems such as poverty, unemployment, disparities in the distribution of income and wealth, statistical data and statistical methods play a vital role.

Designing a questionnaire:

·        Covering letter
·        The number of questions should be as few as possible
·        Questions should be logically arranged
·        Questions should be short and simple
·        Questions of a sensitive nature should be avoided
·        Instructions to the informants
·        Footnotes
·        Questions should be capable of objective answers
·        Answer to questions should not require calculation
·        Pre-testing the questionnaire
·        Cross-checking
·        Incentives to respondents
·        Method of tabulation to be used

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