MAS - QABD

Unit : 1
Introduction to Statistics

Statistics is concerned with the scientific methods of collecting, organizing, summarizing, analysing, presenting,
and interpreting data, as well as deriving valid conclusions and making reasonable decisions based on the
analysis.

Definition of Statistics:
“Statistics may be defined as the science of collection, presentation, analysis, and interpretation of numerical
data.” - F. E. Croxton and D. J. Cowden.

Features of Statistics
• Aggregate of Facts: Statistics are not individual, isolated figures, but rather collections of related data
points.
• Numerical Expression: Statistical data must be expressed in numerical or quantitative terms.
• Comparability: Statistical data is collected and analyzed with the intention of comparing different sets of
data.
• Systematic Collection: Data collection should follow a systematic and organized approach.
• Pre-determined Purpose: Statistical analysis is conducted for a specific, well-defined purpose.

Objectives of Statistics
a. To collect numerical data relating to the problem.
b. To study the data and identify the reason behind them.
c. To compare the data relating to the past and the present conditions.
d. To investigate into unknown events relating to the problem.
e. To focus light on the complex issues of the problem.
f. To forecast the future trends of the problem.

Functions of Statistics
a. It helps to collect complex and mass data and summarizes them.
b. It assists in presenting and analysing the collected data in a definite form.
c. It simplifies unwieldy and complex data.
d. It compares and establishes relationship among the variables easily.
e. It enlarges human skill and guides to solve problems.
f. It provides guidance to formulate the administrative policies.
g. It measures and throws light on the unknown and complex data.
h. It applies probability theory and helps in drawing valid inference.
i. It estimates the data that are missing or lost.
j. It interprets results of experiments and identifies events for future.
k. It facilitates methods to many disciplines of human knowledge.

Scopes or Importance of Statistics:

1. In Education: Statistics helps track student progress, improve teaching methods, design better courses, and
shape education policies. It also helps spot students who need extra support.
2. In Industries: It’s used to maintain product quality, improve production, manage stock, and boost efficiency.

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3. In Commerce: Businesses use statistics to study markets, understand customer behavior, predict sales, and
reduce risks. It helps in making smart decisions.
4. In Medicine: Statistics is key in testing new treatments, studying diseases, and guiding health policies. It
supports evidence-based medical practices.
5. In Economics: It helps predict things like inflation or unemployment, study policy effects, and understand
how markets work.
6. In Planning: It supports population studies, city planning, and resource use. It helps plan for future needs
like roads, schools, and hospitals.
7. In Modern Uses: Statistics is the base for Data science, AI, and Machine learning. It helps predict trends in
sports, weather, security, and more.

Limitations of Statistics
1. Statistics does not study Qualitative Phenomenon: Statistics deals with only a set of numerical data, which
can be expressed in quantitatively. It does not study qualitative phenomenon like honesty, poverty, beauty,
and intelligence, which cannot be expressed in quantitatively. However, the qualitative data, which can
express quantitatively, can be studied.

2. Statistics does not study Individual Items: Statistics deals with only aggregate of facts, but not with
individual item. Isolated and single fact is beyond the study of statistics.

3. Statistical Laws are not exact: The laws, associated with natural sciences, are exact and true. But the
statistical laws are not exact; they are only approximations. They reveal the average behaviour of data, the
normal or the general trend. That is why the statistical conclusions are not universally true. They are true
only on an average.

4. Statistical Methods are liable to be misused: Statistical methods tools are delicate, and they are liable to
be misused by the inexperienced persons, who do not know about the techniques of the science. Misuse of
tools, knowingly or unknowingly, may lead to wrong conclusions.

5. Statistics does not express the entire data: Statistics relies on estimates and approximations. Its methods
are applied to only a part of the population. The results might lead to fallacious conclusions. They do not
give complete story of the population. They give a partial view about the specific phenomenon. They are
only the means and not end for solving problems. We require other evidence to supplement the view or result
of the statistical experiment.

Important Terminologies
1. Data: Data (Plural) are unorganized data quantitative facts or numbers about events, persons, things,
situations, statistics or items from which we can take decisions.
2. Raw Data: Raw Data are unorganized facts and figures. They are collected from the source and recorded as
they are without changing their form and structure. They are not useful for immediate study.

TYPES OF DATA
There are two types of data viz., Primary Data and Secondary Data.
a) Primary Data: Primary Data are originally or directly collected for the first time by the investigator for
a specific purpose. They are possessing a high degree of inaccuracy. However, their collection requires
organization, and lot funds, labour, time, skill.
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SOURCES OF COLLECTION OF PRIMARY DATA
➢ Direct Personal observations: Investigations themselves go to the field personally observe and collect
the information from the informants.
➢ Indirect Oral Interview: Investigations used to appoint experienced enumerators to collect the data. The
enumerators are asked to interview the respondents and record the answer given by them.
➢ Local Agencies: Investigators used to appoint local agents or correspondents in different parts of the area
to collect the data.
➢ Questionnaires: A questionnaire is a list of logically arranged questions relating to the field of enquiry
and providing space for the answer to be filled in by the respondents.
➢ Schedules: It is a printed list of simple questions, it is sent to the respondents through the enumerators.
The enumerators discuss personally with the respondents and record.
➢ Other methods: which include (a) warranty cards; (b) distributor audits (c) pantry audits; (d) consumer
panels (e) using mechanical devices; (f) through projective techniques; (g) depth interviews, and (h)
content analysis.

b) Secondary Data: Secondary Data are collected from the materials already published by any organization
and subsequently used by the investigator. They are already in existence for some other purpose. They are
in the form of finished products which either published or unpublished and readily available for use
indirectly for the second time by other investigators.

SOURCES OF COLLECTION OF SECONDARY DATA

a. Various publications of the central, state are local governments;
b. Various publications of foreign governments or of international bodies and their subsidiary organizations;
c. Technical and trade journals;
d. Books magazines and newspapers;
e. Reports and publications of various associations connected with business and industry, books, stock
exchanges, etc.;
f. Reports prepared by research scholars, universities, economists, etc.
g. In different fields;
h. Public records and statistics, historical.

3. Population: Population is a unit which often consists of a large group of specifically defined elements. It is
composed every element or item of the group under study. For example, the population of India, the total
number of students in the Bengaluru University and the total number of Teachers in Karnataka.
4. Parameter: It is a numerical measurable character or attribute of population. It is the result of census. It is
used to describe a specific feature of the entire population. It represents the exact or accurate result of the
population.
5. Survey: Survey is a process of research or investigation used for collecting data from a predefined group of
informants (respondents) to have information and insights into various topics of interest.
6. Census: Census is a technique of enumeration of complete or full set of data or objects belonging to a given
population or universe under study.
7. Observation: Observation is an act of examining or watching through which population or sample data are
collected.
8. Sample: Sample a finite subset or part of a population selected randomly to draw conclusions about the
population. It is a small size of elements randomly selected from the population. We can infer the features of
the population on the basis of sample selected from the population.
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9. Sampling: A study of obtaining data from the sample in order to estimate the attributes of population.
10. Sample Survey: A sample survey is a way to collect data from a portion of the population to learn about the
entire group.
11. Unit: It is a basic element of a large group. It is the basis of measurement in terms of which data are collected,
analysed, and interpreted. It is an elementary amount, entity or quantity fixed and used as a standard
measurement for counting data.
12. Variable: It is an element of any data, entity, thing and factor whose value, characteristic, number or quantity
is subject to change, increase or decrease, over a period of time or at different values at different situations.
Age, weight, height, income, expense and other things are examples of variables. As their values vary
according to the changes in their conditions, they are called Variables.
13. Frequency: It is the number of times a particular value for a variable (data item) has been observed to occur.
It is a measure of the number of times that an event occurs.
14. Seriation: It is concerned with the logical and chronological classification or arrangement of data into a
specific sequence with reference to size, condition (frequency), time and space (area) of observations.
15. Series: It is a set of data values arranged in some order—usually based on time, class, or frequency.
Examples: Time Series: Data collected over time (e.g., monthly sales).
16. Individual (Observations) Series: The number of observations is small in size. Generally, data are in raw
form. There is no need to condense the data. However, the data can be organized in an array either ascending
or descending order of values.
17. Condition Series: It is one in which data are arranged according to their physical condition or occurrence of
frequencies – Discrete and Continuous.
18. Discrete (Ungrouped) Series: It is one in which the different values of a variable are shown in a
discontinuous (Gap between only whole numbers such as 5,10,15 60,75,80 and so on…) manner along with
their respective frequencies. Such a series can also be arranged either in ascending, or in descending order.
19. Continuous (Grouped) Series: It is one which the different values of the variables are stated in a continuous
(Gap between whole numbers as well as fractional with decimal numbers such as 4.5, 4.8, 6, 7,7.2, 8.7 and
son…) manner along with their respective frequencies. Such a series can be also arranged in ascending, or
in descending order. The values are stated in class intervals for which frequencies are recorded either in
absolute form or in cumulative (less than, or more than) form along with their respective frequencies.
20. Time (Historical or Temporal) Series: It is one in which data are arranged chronologically in relation to
time. The values of variable are placed either reference to days, weeks, months, years, decades or centuries.
21. Spatial (Geographical) Series: It is one in which data are arranged on the basis of geographical area –
villages, towns, Talukas, districts, zones and states. The data can be arranged either alphabetically or in array
(ascending or descending order of values).

Classification of Data
Collection of Data is the process of counting or enumerating data and recording them for further treatment. It is
a systematic approach of gathering and measuring information from a variety of sources to get a complete and
accurate information under study.

Types of Classification
1. Public Data: This type of classification is made available to one and all openly. It can be used by all the
people concerned with the subject. It is freely accessible for people to read, research, review and store.
2. Private Data: This type of classification is made available to only to the private communities to protect their
interest and integrity of the members. It is available to the members by using the codes passwords, phone
numbers or fingerprints.
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3. Internal Data: This type of classification is strictly made available to the internal members or specific group
of members or employees within the organization, company or institution.
4. Confidential Data: This type of classification is only made available to those people who are authorised to
use such information. Usually, the confidential data is protected by the rules and regulations governed by
higher authorities of the organisation. Such data requires special access privileges that is strictly controlled.
5. Restricted: This type of classification consists of data that could be used only under special conditions
otherwise there would be a punishment for misuse of such data. It relates to the proprietary information
protected by state the rules and regulations. If such data is used without permission, it would lead to criminal
charges and massive legal fines and even it causes irreparable damage to the company.

Requisites of Good Classification

Following are the characteristics of a good classification:
1. Comprehensiveness: The data classified is in such a way that it should cover all the features concerned with
its subject matter. It means the classification should include completely features of data.
2. Clarity: The data classified should be clear, meaningful and easily understood. It should not contain
ambiguous and confusing terms. There should be a clear and correct explanation.
3. Homogeneity: In the classified one should find all the items clearly related to the main theme of the subject
matter. It should not contain irrelevant items or materials contrary to the main purpose of the data for which
classification is made.
4. Suitability: The design and form for which the classification is made should be consistent and relevant with
the purpose of classification.
5. Stability: The classification be stable for a particular period time. It should not be altered or rearranged
unnecessarily.
6. Elastic: With the passage of time, if the purpose of classification changes, we should be able to change the
basis of classification.

TYPES OR METHODS OF CLASSIFICATION

Broadly, the statistical data are classified according to their characteristics in four basis types namely:

1. Chronological Classification: In chronological classification the collected data are arranged according to
the order of time expressed in years, months, weeks, etc. Example: Population of country can be arranged
according to period of ten years.

2. Geographical Classification: In this type of classification the data are classified according to geographical
region or place. Example: Death rate of corona patients can be collected according to State wise.

3. Qualitative classification: In this type of classification data are classified on the basis of same attributes or
quality like sex, literacy, religion, employment etc., Such attributes cannot be measured along with a scale.
So, Data are classified according to attribute or characteristics or qualities. Generally, the qualitative
phenomena are not measurable.

4. Quantitative Classification: Quantitative classification refers to the classification of data according to some
characteristics that can be measured such as height, weight, income, profits etc. Data that can be expressed
in numbers can be called qualitative classification.

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