INTRODUCTION TO
STATISTICS
BY- NIRBHAY JHA, WPS
STATISTICS IN SINGULAR SENSE
• “Statistics may be defined as the collection,
presentation, analysis, and interpretation of
numerical data.” —Croxton and Cowden.
STAGES OF STATISTICAL STUDIES
IMPORTANCE OF STATISTICS IN ECONOMICS
• Statistics helps to present economic problems and economic
facts quantitatively.
• Statistics can be used for inter sectoral and inter temporal
comparisons.
• The finance Minister uses data to take major policy decisions.
• It helps an economist to understand an economic problem.
Proper understanding of the problem is needed to make
policies to solve it.
• It helps to find the relationship between various economic
factors. For example: By analysing data, we can understand
the relationship between price and quantity demanded.
• It helps to make economic forecasting.
• It helps to construct and verify the theories of Economics.
LIMITATIONS OF STATISTICS
• Statistics deals only with quantitative facts. It does
not deal with qualitative facts.
• It deals with only aggregate of facts. It does not deal
with individual numerical facts.
• Statistical results are true only on averages.
• Statistics deals with only homogeneous data.
• Statistical facts can be misused.
• Statistical methods can be used only by experts.
COLLECTION OF DATA
• DATA: Numerical facts from which meaningful
conclusions can be drawn
DATA
PRIMARY DATA SECONDARY DATA
Primary Data: The data collected for the first time by
an investigator for a specific purpose.
Example: Census of India.
Secondary Data: Secondary data is the data that have
been already collected by sources other than the
investigator.
Examples: Census, Reports of NSSO
PRIMARY DATA SECONDARY DATA
It is original data It is already existing data
It is collected by the It is collected by someone
investigator by himself else for some other purpose.
It is expensive It is less expensive
It is time consuming It is less time consuming
It is more accurate It is less accurate
METHODS OF DATA COLLECTION
CENSUS METHOD SAMPLING METHOD
CENSUS METHOD SAMPLE METHOD
Data are collected from the Data are collected from a
entire population selected sample
It is a time consuming method It is a time saving method
It is reliable and accurate Accuracy and reliability are
less
It is difficult to identify errors Errors can be easily identified
It is expensive It is less expensive
QUESTIONNAIRE
Questionnaire refers to a set of questions
prepared by the investigator in order to collect the
information needed for statistical investigation.
QUALITIES OF A GOOD QUESTIONNAIRE
• The questionnaire should not be very long. Number
of questions should be limited.
• Questions should be simple and easy to understand.
• Questions should be in a proper order.
• Clear instructions should be given as introduction.
• Personal questions and controversial questions
should be avoided.
• Questions that involve mathematical calculations
should be avoided.
METHODS OF COLLECTING PRIMARY DATA
• Direct Personal Interview Method.
• Indirect Oral Investigation Method.
• Mailed Questionnaire Method.
• Telephone Interview Method.
• Information from local sources or correspondents.
SOURCES OF SECONDARY DATA
PUBLISHED SOURCES UNPUBLISHED SOURCES
Government
Publications
Semi Government Data collected for
Publications self use by the
Reports of Committees Government and
and Commissions Private agencies
Journals and News Papers
Publications of research
Institutes
International Publications