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Characteristics, Functions And Uses of Statistics

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Content Outline

  1. Introduction
  2. Characteristics of statistics
  3. Functions of Statistics
  4. Uses of Statistics
  5. Limitations of Statistics
  6. Using Computer Programmes in Statistics
  7. Summary

Introduction

Statistics often causes anxiety and tension in the minds of students undertaking this study of research methods. But an easy way to reduce this stress is to recognize that we are already exposed to statistics in our everyday life. For instance, as students we are familiar with the notion of Class X percentages. While watching cricket matches, we are used to comparing players and teams on the basis of various aspects such as run rate and wickets. We are used to deciding whether the rainfall our cities and villages receive is above or below average based on the figures of the previous years. During elections we see much discussion on the vote share of different party candidates.

Characteristics of statistics

The major characteristics of statistics can be stated as:
  1. Statistics are aggregates of facts: These facts can be compared or related to other figures within the same framework. For example a single figure about a person’s income cannot be considered statistics because it is not informative enough. If you get to know one social worker’s salary, you are not informed well enough about the entire field. But if you were to learn through a survey about the salary of 100 social workers, depending on how and where you sampled the group in your study, you may be able to start drawing conclusions about the average pay in the field, the average pay for someone who just entered employment versus someone who has been working as a social worker for 10 years, and finally the average pay for a social worker involved in service delivery versus a social worker involved in academics and research. Such data relating to the income of a group of persons or perhaps all the employees of a social work organisation would be considered statistics.
  2. Statistics are affected to a marked extent by multiplicity of causes: It means that statistics are facts and figures which are the consequence of multiple causation. For example, the change in the travel habits of an individual may be due to the effect of many factors such as changes in prices, health, incomes and time. While these factors can be isolated by themselves, the effect of these factors cannot be isolated and measured independently.
  3. Statistics are expressed numerically: Qualitative statements are not statistics unless they are supported by numbers. For example, the statement like “India has reduced the number of people who are considered poor” does not constitute statistics. On the other hand, comparing the per capita income of India with that of Bangladesh would be called statistics. Similarly, the collection of data consisting of the number of poor of India for the last ten years would also be considered as statistics.
  4. Statistics are enumerated or estimated according to reasonable standards of accuracy: Enumeration simply means counting the actual number in the data, such as the number of male teachers in a school. However, when it is impossible or impractical to observe an entire set of observations, then data are estimated by using powerful techniques of sampling and estimation. But the estimated values will not be as precise and accurate as actual values. The degree and accuracy of the estimated values will depend on the nature and purpose of the enquiry
  5. Statistics are collected in a systematic manner: The data must be collected in a systematic manner because gathering data in a haphazard manner leads to erroneous conclusions. 
  6. Statistics are collected for a pre-determined purpose: The purpose and objective of collecting the data must be clearly defined, decided and determined prior to data collection. This would facilitate the collection of proper and relevant data. For, example data on agriculture production in itself, does not serve any purpose unless we know the period, commodities and regions for which they are required.
  7. Statistics must be placed in relation to each other: The statistical data that are collected should be comparable with each other. For example, the data collected on the price of different commodities in a store will not be considered statistics. However, the price of one commodity in different departmental stores constitutes statistical data since theses prices are comparable. 

Functions of Statistics

  • Preciseness and definiteness: Statistical techniques enable us to present facts in a clear, precise and definite form.
  • Condensation: With the help of statistical tools a mass of data can be condensed into a few presentable, understandable and significant figures. Data that are complex can be presented in terms of percentages, averages etc.
  • Comparison: This is also one of the important functions of statistics; the absolute figures themselves do not convey any significant meaning. It is their comparison that helps us draw conclusions. Statistical devices like averages, ratios, percentages and graphs are the tools that can be employed for the purposes of comparison.
  • Formulation and testing of hypothesis: Statistical methods are extremely useful in formulating and testing hypothesis for the purpose of establishing a relationship between two or more variables. For example, the degree of association between demand and price or between amount of rainfall and yield of crop or between advertising expenditure and sales can be obtained using statistical tools. Similarly the hypothesis like whether or not advertising campaign is effective in sales increase can be tested by using appropriate statistical tools. 
  • Prediction: Statistical techniques can be used to analyse the past data and predict the future trends. For example, the demand for a particular product for the next year can be predicted by knowing the demand for that product in the past and the current market trends and possible changes in the factors that affect the demand.
  • Formulation of suitable policies: Statistics helps in the formulations of various economic, business and other policies at state, national or global level. For example, the government policies on education, taxation, pollution, law and order, social welfare etc., are formulated on the basis of statistical data and inferences drawn from their analysis. Similarly business organizations also use of statistics to design their policies in areas of finance, marketing and personnel.  

Uses of Statistics

Historically, the use of statistics can be traced back to the ancient Egyptians and Chinese who used statistics for keeping state records. The Chinese under the Chou dynasty in 2000 BEC maintained extensive lists of revenue collection and Government Expenditures. They also maintained records on the availability of warriors. Today, the subject of statistics is one of the most powerful tools in any scientific enquiry which has found applications in a very large number of disciplines such agriculture, industry, psychology, sociology, economics, insurance, business, biology, planning, management, etc. The field of study to which statistics is being applied is constantly increasing. In business, commerce and industry, statistics is considered an indispensable tool in analysis of activities relating to business commence and industry. Statisticians are employed by every progressive industry to direct their quality control process and to assist in the establishment of good advertising and sales programmes for their products. The main objective of any production process is to control the quality of the manufactured product so that it conforms to certain specifications. In business the statistician is responsible for decision making, for the analysis of time series, and for the formulation of index numbers. Statistics can be used to study trends, to obtain the estimates of probable demand for the good. Time series analysis can also be use to study ‘Business cycles’. The study of index numbers helps the business man to have an idea about the purchasing power of the currency.

Statistics in Economics: To study various economic problems such as production, consumption, distribution, wealth, savings, investment, unemployment, poverty, etc. Data on national income and wealth are useful in formulating policies for reducing disparities of income.

statistics in physical and natural sciences: In studies of astronomy, biology, agriculture, zoology, etc, statistical techniques are extremely useful. In medicine the effects of drugs on individuals is one area where the uses of statistical methods is well established. It has even been applied to determine the total population of various species.

Statistics in research: Most of the advancement in research has taken place because of experiments conducted with the help of statistical methods. These are now widely applied in market production research. This includes advertising and promotional strategies, forecasting, new product decisions etc.

Limitations of Statistics

The field of statistics though widely used in almost every sphere of life, does have some limitations.
  • Statistics does not deal with individual figures: it only deals with aggregate of facts or figures. Single or isolated figures cannot be called statistics. For example a single figure relating to the height of a student in a class is not statistical in nature unless the heights of other students in the same class are also mentioned.
  • Statistics does not study qualitative data: Statistics is the study of only those facts that are capable of being stated in numbers or quantity. Qualitative phenomenon such as honesty, intelligence, beauty and poverty cannot be studied directly in statistics unless these attributes are expressed in terms of numbers
  • Statistics laws are not exact: Unlike the laws of natural science, the laws of statistics are not exact, thus the conclusions based on them are true only on an average.
  • Statistics can be misused: A famous statement says that “the figures do not lie, but the liars can figure”, which is testimony to the misuse of statistics. The results can be manipulated or interpreted according to one’s own interest 
  • Statistics’ interpretation requires a great degree of skill and understanding: In order to get meaningful results, it is necessary that the data be collected and critically interpreted. Only people having adequate knowledge of the statistical methods can properly handle statistical data. 

Using Computer Programmes in Statistics

When statistics was developing as a branch of science, people did computations by hand. Statisticians needed to memorise formulae which became more and more complex with the complexity of the data. Computing statistics often took time and as all elements of manual labour may have involved human error during the calculation. Today computers remove much of the pain suffered by earlier statisticians. Computers are becoming more sophisticated and capable of handling large databases. Today the field is slowly moving towards the analysis of big data because there are computers and programmes to handle such huge data-sets. Data mining is becoming a specialty subject in research.

Using statistical programmes students can derive statistical output in a minute (depending on the speed of the computer’s processer unit). Using a computer package like SPSS you may be able to order the computer to give you multiple statistics using just one command. But this is not a good use of statistics. Good researchers use the appropriate method for their studies. So as you learn other modules, you would be wise to understand where to apply a particular technique, and to avoid the common mistake of beginners of showing a report with all the types of statistics that the computer programme allows you irrespective of whether that is the right place to apply it. 

Conclusion

Statistics are affected by a multiplicity of causes and must be must be placed in relation to each other Statistical devices like averages, ratios, percentages, graphs, etc. are the tools that can be employed for the purposes of comparison.

Today, the subject of statistics is one of the most powerful tools in any scientific enquiry which has found applications in a very large number of disciplines Most of the advancement in research has taken place because of experiments conducted with the help of statistical methods The field of statistics though widely used in almost every sphere of life, does have some limitations. Only people having adequate knowledge of the statistical devices can properly handle statistical data.

References

  • Howell, D.C. (1999). Fundamental Statistics for the Behavioral Sciences (4th ed.). Pacific Grove, CA, USA: Duxberry Press.

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