Introduction to Statistics

A Brief History of Statistics

Statistics is derived from Latin word “status”, Italian word “Statista” or German word “statistik”.
All these words mean political state. In the early years statistics means collection of facts about the
state or people in the state for political purpose. Thus, it helped in collecting the data about
economic and social conditions of people living in different parts of the country. In the early days
king used to collect the information about the people in their state, it is essential to know the
conditions under which the people live and work, their, health, income, land and buildings, other
assets, and their military strength to plan for new taxes and to fund wars. Therefore, statistics is
known as “science of kings” or science of “state craft” because the data was used by the state.
A systematic collection of data on the population and the economy was begun in the Italian city-
states of Venice and Florence during the Renaissance. The idea of collecting data spread from Italy
to the other countries of western Europe. Indeed, by the first half of the 16th century, it was
common for European governments to require parishes to register births, marriages, and deaths.
The term statistics, which was used until the 18th century as a shorthand for the descriptive science
of states, in the 19th century became increasingly identified with numbers. By the 1830s the term
was almost universally regarded in Britain and France as being synonymous with the numerical
science of society. This change in meaning was caused by the large availability of census records
and other tabulations that began to be systematically collected and published by the governments
of western Europe and the United States beginning around 1800.
Throughout the 19th century, although probability theory had been developed by such
mathematicians as Jacob Bernoulli, Karl Friedrich Gauss, and Pierre Simon Laplace, its use in
studying statistical findings was almost nonexistent, as most social statisticians at the time were
content to let the data speak for themselves. At that time statisticians were not interested in drawing
inferences about individuals, but rather were concerned with the society. Thus, they were not
concerned with sampling but rather tried to obtain censuses of the entire population. As a result,
probabilistic inference from samples to a population was almost unknown in 19th-century social
statistics.
It was not until the late 1800s that statistics became concerned with inferring conclusions from
numerical data. The movement began with Francis Galton’s work on analyzing hereditary genius
through the uses of what we would now call regression and correlation analysis and obtained much
of its impetus from the work of Karl Pearson. Pearson, who developed the chi-squared goodness-
of-fit test, was the first director of the Galton laboratory, endowed by Francis Galton in 1904.
There Pearson originated a research program aimed at developing new methods of using statistics
in inference. His laboratory invited advanced students from science and industry to learn statistical
methods that could then be applied in their fields. One of his earliest visiting researchers was W. S.
Gosset, a chemist by training, who showed his devotion to Pearson by publishing his own works
under the name Student. Gosset is famous for his development of the t-test.
Two of the most important areas of applied statistics in the early 20th century were population
biology and agriculture. This was due to the interest of Pearson and others at his laboratory and
to the remarkable accomplishments of the English scientist Ronald A. Fisher. The theory of inference
developed by these pioneers, including, among others, Karl Pearson’s son Egon and the Polish-
Prepared by: Suman Biswas, Lecturer, Department of Statistics, Islamic University, Kushtia-7003 1
 Introduction to Statistics
born mathematical statistician Jerzy Neyman, was general enough to deal with a wide range of
quantitative and practical problems. As a result, after the early years of this century, a rapidly
increasing number of people in science, business, and government began to regard statistics as a
tool able to provide quantitative solutions to scientific and practical problems.
Nowadays the ideas of statistics are everywhere. Descriptive statistics are featured in every
newspaper and magazine. Statistical inference has become indispensable to public health and
medical research, to marketing and quality control, to education, to accounting, to economics, to
meteorological forecasting, to polling and surveys, to sports, to insurance, to gambling, and to all
research that makes any claim to being scientific. Statistics has indeed become ingrained in our
intellectual heritage.
Definition of Statistics
Statistics has been defined differently by different authors from time to time. In ancient times
statistics was confined only to the affairs of the state but now it embraces almost every sphere of
human activity.
Webster defines statistics as “classified facts representing the conditions of the people in a state-
especially those facts which can be stated in numbers or in any other tabular or classified
arrangement”.
Yule and Kendall define as “By statistics, we mean quantitative data affected to a marked extend
by multiplicity of causes”.
Perhaps the best definition seems to be one given by Croxton and Cowden, according to whom
statistics may be defined as “the science which deals with the collection, analysis, and interpretation
of numerical data”.
Therefore, Statistics is defined as the science of conducting studies to collect, organize, summarize,
and analyze the data as well as draw valid conclusions about the population from sample data.
The body of knowledge called statistics is sometimes divided into two main areas, depending on
how data are used. The two areas are:
✓ Descriptive statistics
✓ Inferential statistics
Descriptive statistics
Descriptive statistics consists of the collection, organization, summarization, and presentation of
data.
In descriptive statistics the statistician tries to describe a situation. Consider the national
census conducted by the government in every 10 years. Results of this census give you the average
age, income, and other characteristics of our population. To obtain this information, the Bureau
of Statistics must have some means to collect relevant data. Once data are collected, the bureau
must organize and summarize them. Finally, the bureau needs a means of presenting the data in
some meaningful form, such as charts, graphs, or tables.
Inferential statistics
Inferential statistics, also called statistical inference, is the methods used to estimate a property of a
population on the basis of a sample. It consists of generalizing from samples to populations,

Prepared by: Suman Biswas, Lecturer, Department of Statistics, Islamic University, Kushtia-7003 2
 Introduction to Statistics
performing estimations and hypothesis tests, determining relationships among variables, and
making predictions.
Here, the statistician tries to make inferences from samples to populations. Inferential
statistics uses probability, i.e., the chance of an event occurring. You may be familiar with the
concepts of probability through various forms of gambling. If you play cards, dice, bingo, and
lotteries, you win or lose according to the laws of probability.
Statistics can be studied for several reasons:
1. To read and understand the various statistical studies performed in different fields, we must
be knowledgeable about the vocabulary, symbols, concepts, and statistical procedures used
in these studies.
2. To conduct research in the own field one must be able to design experiments; collect,
organize, analyze, and summarize data; and possibly make reliable predictions or forecasts
for future use. Additionally, one must be able to communicate the results of the study in
their own words.
3. One can use the knowledge gained from studying statistics to become better citizens. For
example, you can make intelligent decisions about government spending based on
utilization studies.

Characteristics of Statistics
As numerical statement of facts, statistics should possess the following characteristics:
1. Aggregate of facts:
Statistics is concerned with group of facts rather than a single fact i.e., single and isolated/unrelated
figures are not statistics.
For example, a student got 100 marks in statistics is not statistics, but if the marks secured by entire
class is recorded than it will be statistics.
2. Affected to a market extent by multiplicity of causes:
Numerical facts are not affected by one factor but are affected by a large number of factors.
For example, the prices of vegetables have increased by 80% in 2023 compared to 40% in 2022.
The reason for increase in price of commodity are demand and supply natural calamities price of
competitive products.
3. Numerically expressed:
Only numerical data can be called as statistics, qualitative expression like good, bad, excellent,
hardworking, poor are not statistics.
For example, production of rice has increased is not statistics but the production of statistics in
Bangladesh in 2003-2004 is 86.4 million tons compared to 72.66 million tons in the year 2002-
2003.
4. Enumerated or estimated according to reasonable standard of accuracy:
Data can be collected either by enumeration or estimation. The data collected by enumeration is
more exact and accurate. Estimated figures may not be absolutely accurate. If the number of

Prepared by: Suman Biswas, Lecturer, Department of Statistics, Islamic University, Kushtia-7003 3
 Introduction to Statistics
observation is small than enumeration is used but if the numbers of observation are large, then
estimation can be used.
For example, while collecting marks of a student or no. of votes got by a candidate in the election,
it is necessary the data should be accurate. But while calculating number of people watching cricket
match in a stadium then estimation can be used.
5. Collected in a systematic manner:
For accuracy and reliability, the data should be collected in a systematic manner. Data collected
in haphazard manner may not give accurate result and attempt should be made to reduce personal
bias to the minimum while collecting the data.
6. For a predetermined purpose:
The purpose of collecting the data should be predetermined otherwise the data collected may not
serve any purpose and become useless. One should not waste time and money in collecting the
info which is irrelevant for the enquiry.
For example, for the purpose of knowing the cost of living of poor people then we should collect
information about the items.
7. Placed in relation to each other:
Statistical info is collected for the purpose of comparison. if the data collected cannot be compared
then the purpose will be waste. The info collected should be homogeneous and not heterogeneous
in character, so that comparison is possible.
For example, different data relating to population of a country different years or population of
different countries in some fixed period will be statistics. it would be meaningless to compare the
height of human being with that of giraffe or weight of a human being with that of elephant.

Importance of Statistics
The role of statistics in any field of application is an aid to solving problems or to be more precise,
to answering a variety of questions raised in solving problems. It has its wider application in
agriculture, biological science, accounting, marketing, finance, and production processes.
The importance of statistics in the following major sectors and disciplines:
1. Statistics in Business and Industry
In past days, decisions regarding business were made only on personal judgement. However, in
these days, they are based on several mathematical and statistical techniques and the best decision
is arrived by using all these techniques.
For example, by using the testing hypothesis, we can reject or accept the null hypothesis which are
based upon the assumption made from the population or universe.
2. Statistics in the Field of Science and Research
Statistics has great significance in the field of physical and natural sciences. It is widely used in
verifying scientific laws and phenomenon.

Prepared by: Suman Biswas, Lecturer, Department of Statistics, Islamic University, Kushtia-7003 4
 Introduction to Statistics
For example, to formulate standards of body temperature, pulse rate, blood pressure, etc. The
success of modern computers depends on the conclusions drawn based on statistics.
3. Statistics in the Field of Banking
In banking industry, the bankers have to relate demand deposits, time deposits, credit etc. It is on
the basis of data relating to demand and time deposits that the bankers determine the credit
policies. The credit policies are based on the theory of probability.
4. Statistics to the State
We know that the subject of statistics originated for helping the ancient rulers in the assessment of
their military and economic strength. Gradually its scope was enlarged to tackle other problems
relating to political activities of the State.
In the modern era, the role of State has increased and various governments of the world also take
care of the welfare of its people. Therefore, these governments require much greater information
in the form of numerical figures for the fulfilment of welfare objectives in addition to the efficient
running of their administration.
5. Statistics in planning
Planning is indispensable for achieving faster rate of growth through the best use of a nation’s
resources. It also requires a good deal of statistical data on various aspects of the economy.
One of the aims of planning could be to achieve a specified rate of growth of the economy. Using
statistical techniques, it is possible to assess the amounts of various resources available in the
economy and accordingly determine whether the specified rate of growth is sustainable or not.

Scope of Statistics
The scope and uses of statistics are wide and universal that they cannot be enumerated instantly in
a few words. Statistics has now been recognized as a separate discipline of human knowledge in its
own right. The scope of statistics is ever increasing. The following are the main scope of statistics:
1. Presents facts in numerical figures
The first function of statistics is to present a given problem in terms of numerical figures. We know
that the numerical presentation helps in having a better understanding the nature of problem.
2. Presents complex facts in a simplified form
Generally, a problem to be investigated is represented by a large mass of numerical figures which
are very difficult to understand and remember. Using various statistical methods, this large mass of
data can be presented in a simplified form.
3. Studies relationship between two or more phenomena
Statistics can be used to investigate whether two or more phenomena are related. For example,
the relationship between income and consumption, demand and supply, etc.
4. Helps in the formulation of policies
Statistical analysis of data is the starting point in the formulation of policies in various economic,
business and government activities.
Prepared by: Suman Biswas, Lecturer, Department of Statistics, Islamic University, Kushtia-7003 5
 Introduction to Statistics
For example, using statistical techniques a firm can know the tastes and preferences of the
consumers and decide to make its product accordingly.
5. Helps in forecasting
The success of planning by the Government or of a business depends to a large extent upon the
accuracy of their forecasts. Statistics provides a scientific basis for making such forecasts.
6. Provides techniques for testing of hypothesis
A hypothesis is a statement about some characteristics of a population (or universe).
7. Provides techniques for making decisions under uncertainty
Many times we face an uncertain situation where any one of the many alternatives may be
adopted. A businessman might face a situation of uncertain investment opportunities in which he
can lose or gain.
He may be interested in knowing whether to undertake a particular investment or not. The answer
to such problems are provided by the statistical techniques of decision-making under uncertainty.

Limitations of Statistics
Statistics is a science as well as an art, which is used as an instrument of research in almost every
sphere of our activities. Some of the limitations of statistics are as follows:
1. Statistics suits to the study of quantitative data only
Statistics deals with the study of quantitative data only. By using the methods of statistics, the
problems regarding production, income, price, wage, height, weight etc. can be studied. Such
characteristics are quantitative in nature.
The characteristics like honesty, goodwill, duty, character, beauty, intelligence, efficiency, integrity
etc. are not capable of quantitative measurement and hence cannot be directly dealt with statistical
methods. These characteristics are qualitative in nature.
2. Statistical results are not exact
The task of statistical analysis is performed under certain conditions. It is not always possible, rather
not advisable, to consider the entire population during statistical investigations.
The use of samples is called for in statistical investigations. And the results obtained by using samples
may not be universally true for the entire population. Data collected for a statistical enquiry may
not be hundred percent true. Statistical results are true on an average.
3. Statistics deals with aggregates only
Statistics does not recognize individual items. Consider the statement, “The weight of Mr X in the
college is 70 kg”. This statement does not constitute statistical data. Statistical methods are not
going to investigate anything about this statement. Whereas, if the weights of all the students of
the college are given, the statistical methods may be applied to analyze that data.
4. Statistics is useful for experts only

Prepared by: Suman Biswas, Lecturer, Department of Statistics, Islamic University, Kushtia-7003 6
 Introduction to Statistics
Statistics is both a science and an art. It is systematic and finds applications in studying problems in
Economics, Business, Astronomy, Physics, Medicines etc. Statistical methods are sophisticated in
nature. Everyone is not expected to possess the intelligence required to understand and to apply
these methods to practical problems. This is the job of an expert, who is well-versed with statistical
methods.
5. Statistics does not provide solutions to the problems
The statistical methods are used to explore the essentials of problems. It does not find use in
inventing solutions to problems. For example, the methods of statistics may reveal the fact that the
average result of a particular class in a college is deteriorating for the last ten years, i.e., the trend
of the result is downward, but statistics cannot provide solution to this problem.
It cannot help in taking remedial steps to improve the result of that class. Statistics should be taken
as a means and not as an end. The methods of statistics are used to study the various aspects of the
data.

Prepared by: Suman Biswas, Lecturer, Department of Statistics, Islamic University, Kushtia-7003 7