According to Yule and Kendall “ By Statistics we mean quantitative data affected to a marked extent by multiplicity of causes.”
Now if we consider statistics as statistical methods statistics can be defines as a science of collection, presentation, analysis and interpretation of numerical data. In modern time it is not only defined as a tool of collecting data but also help to develop some new technologies for their handling and analysis and depiction valid inference from them. Some of the importance of statistics in different sectors and disciplines are:-
- Statistics and Planning: Statistics is important for planning. Almost all organizations in the government or managements of business are resorting to planning for efficient working and for formulating policy decisions. To achieve this end, the statistical data relating to production, consumption, efforts, investment, prices income, expenditure etc and various statistical techniques for handling and analysis are of major importance.
- Statistics and Mathematics: We all know that statistics is intimately related and dependent on mathematics. The development of various statistical techniques and theories for application to various science-social, political etc are based on fitting various mathematical models to the observed data under some pre-defined assumptions in accordance to statistics to be retrieved from the data. Some of those that played a major role in the history of statistics are Laplace, Bernoulli, Pascal, De-Moivre, Guass, Chebychew, Kolmogorov, R.A Fisher, S.N Roy, R.C Bose, H.Cramer, who were primarily talented and skilled mathematicians. Every increasing role of mathematicians in Statistics has given a new branch to statistics called ‘Mathematical Statistics’.
- Statistics and Economics: Not only mathematics but statistics also played a vital role in solving economic problems, such as wages, prices, consumption, production, distribution of income and wealth, etc. Various statistical tools such Index numbers, Time series Analysis, Demand and Supply Analysis are now extensively used for growth and development of the country. Empirical studies based on sound statistical analysis have led to the formulation of various economics laws. Some are named below:-
i. ‘Engel’s Law of Consumption’, (1895) was based on detailed and systematic studies of the family budgets of a number of families.
ii. ‘Pereto’s Law of income Distribution’, based on study of income data of different countries of the world at different times.
iii. ‘Revealed Preference Analysis’ of Prof. Samuelson based on the observation actual behavior of the buyer in the market.
- Statistics and Business: Statistics is an indispensable tool of production control. It helps in carrying out various activities such as:-
i. Carrying out time and motion studies
ii. Marketing decisions
iv. Personnel administration
v. Credit policy
vi. Inventory control
viii. Sales Control
Limitation of statistics: With lot more benefits statistics have some limitations which mentioned below:-
- Statistics is not suited to the study of qualitative phenomenon.
- Statistics does not study individual.
- Statistics laws are not exact.
- Statistics is liable to be misused.
Role of Computer in solving Statistics problems: In today’s digital world computer plays a vital role not only in our life but also in the Industrial development. Use of computer has become an important part of the statistical approach for decision- making. The computer may be required to due complexity of the model volume of data required. There are many statistical tools now a day’s which comes in a ‘canned’ program form just to ease the tasks of manual labor which may sometimes all leads to person or organizational biasness, which may be favor or any personnel issues. The statistical problems are time consuming and involve tedious computations. Even very small statistical real time issues take a long time to get solved.