F.Y.B.M.S.

(SEM-I) BUSINESS STATISTICS

UNIT-I: INTRODUCTION TO STATISTICS

The word statistics seems to have originated from the German word ― ‘statistik’ , the Italian
word –‘statistica’ or the Latin word –‘status’ all meaning –‘state’ in the political sense of the
word.
This in turn seems to have come because statistics was widely used initially to collect data for
the state (Government) so that officials could use the data for better planning in the future.

 Statistics is the science of data.

 This involves collecting, analyzing and interpreting information.
 According to Bowley “Statistics is a science of Counting”.
 According to Liovelt “Statistics is the science which deals with collection classification and
tabulation of numerical facts as bases for explanation description and comparison of
phenomenon.”
 According to Croxton and Cowden “the science which deals with collection analysis
presentation and interpretation of numerical.”

There are two types of statistics:

o Descriptive Statistics uses graphical and numerical techniques to summarize and display
the information contained in a data set.
o Inferential Statistics uses sample data to make decisions or predictions about a larger
population of data.

Functions of statistics

1. It simplifies data:
2. It facilitates comparison:
3. It helps in ascertaining the relation between variables:
4. Statistics helps in estimation:
5. Statistics helps in Decision making:
6. Statistics helps in making decisions where an uncertainty is involved:

1.

Miss.Ansari Aayesha
Asst.Prof.(Mathematics)
J.M.PATEL COLLEEG OF COMMRCE.
F.Y.B.M.S. (SEM-I) BUSINESS STATISTICS

2. It simplifies data:
 It presents facts in numerical figures:
The performance of class is good does not make the picture clear about the performance
of the students.
 It presents facts in aggregated and simplified form:
Huge amount of data is used in statistics with various factors linked to it.
But Statistics simplifies this data so that it becomes clearer to understand the facts in
measurable/tabular form.

3. It facilitates comparison:
• Two sets of data can be compared and studied with the help of statistical measures like
coefficient of variation.
• The marks of students before coaching and after coaching can be compared using a proper
measure, to check whether there has been an improvement in the performances of these
students.

4. It helps in ascertaining the relation between variables:

• Statistics helps in finding whether there is a relation between two sets of data, if yes then
what is the magnitude of relation.
• Eg: The increase in inflation and increase in the price of commodities are closely related.
This relation between them can be measured and also be placed into a mathematical
equation.
• The relation between height and weight of individual , the effect of a certain fertilizer on
the crop, number of traffic challans with number of traffic rule offenders etc.

5. Statistics helps in estimation:

• Every business house is interested in estimating their production; sales, profit in the future,
keeping in mind the previous performances and trends.
• Statistics with proper methods and tools like time series helps in the prediction of the
performances of all such variables with a reasonable standard of accuracy.

6. Statistics helps in Decision making:

• Accurate statistical analysis of the data available from the past and estimation techniques,
facilitates Government, Economists and Business organization in a rationale decision
making process.

Miss.Ansari Aayesha
Asst.Prof.(Mathematics)
J.M.PATEL COLLEEG OF COMMRCE.
F.Y.B.M.S. (SEM-I) BUSINESS STATISTICS

• Example: If the cost of living index has increased, then Government can decide to increase
the Dearness Allowance of its employees. Similarly, if the trend of the demand of a product
in the market is known, the manufacturer can decide on whether to increase or decrease
its production or use some advertisement techniques to increase the demand of the
product in the market.

7. Statistics helps in making decisions where an uncertainty is involved:

• The result of many phenomenon is uncertain.
• If a manufacturer wants to launch a new product he is not sure on the success of the new
product in the market.
• Manufacturer can take a risk even in this uncertain situation, with the help of data related
to similar product and using the statistical tools of probability.
• Thus, Statistics helps the decision makers to select their further course of action and
strategy with minimum risk.

APPLICATION OF STATISTICS
• Statistical techniques can be used in all fields for which numerical data is collected.
• These are used in social science, like Economic, Psychology, Sociology as well as in exact
science like Biology and Physics.
• Business activity
• Accountancy and Finance
• Social Science
• State Administration
• A common man

1. Business and Industry

• Whether you are writing a business plan, feasibility study, advertising and marketing
campaign, or even still deciding on what kind of business to start,
• Start by looking at what is already happening in the field or industry you are interested in.
• Business trends and statistics can give you a quick, overall glance at the viability of an
industry, and how well people are already doing in industry.
• Statistics is not magic formulas for success, but they can give you important clues about
how others are or failing.
• The statistics can be useful in helping you come up with new business ideas, in developing
strategies and marketing campaigns

Miss.Ansari Aayesha
Asst.Prof.(Mathematics)
J.M.PATEL COLLEEG OF COMMRCE.
F.Y.B.M.S. (SEM-I) BUSINESS STATISTICS

2. HEALTH AND MEDICINE

Statistics is an important tool in pharmacological research that is used to summarize
(descriptive statistics) experimental data in terms of central tendency (mean or median)
and variance (standard deviation, standard error of the mean, confidence interval or
range).

3. LEARNING
Statistic for teachers
The techniques of statistics can prove to be valuable tools for teachers of to interpret
statistics is advantageous to analyze lab results, book and journal articles, and as
approaching problem-solving scientifically. Statistics will allow you to critically evaluate
your students, your teaching, and the results of educational research.

4. SOCIOLOGY
• Child-bearing, Child and elderly populations, Population
• Housing, Human settlements
• Income and economic activity, Unemployment
• Social statistics is the use of statistical measurement systems to study human behavior in a
Social environment.
• This can be accomplished through polling a particular group of people,
• evaluating a particular subset of data obtained about a group of people, or by observation
• And statistical analysis of a Set of data that relates to people and their behaviors.

 LIMITATION OF STATISTICS

• Statistics method can applied to group of data and does not highlight individual facts
• Statistics is a quantitative and Qualitative study of facts
• Statistical conclusions are not true universally
• Statistics can be misused

Miss.Ansari Aayesha
Asst.Prof.(Mathematics)
J.M.PATEL COLLEEG OF COMMRCE.