Business

Statistics
PRESENTED BY
SHRUTI TARALE : 48
MANISH PRADHAN : 49
SUMIT MENDHE : 53
AWINASH GAPAT : 50
RAHUL GAIKWAD : 51
 STATISTICS


“Statistics
 may be
defined as the science
of Collection ,
Presentation , Analysis
& Interpretation of
numerical data .”
 Five stages of Stages of
Statistical Investigation

• Collection
• Organization
• Presentation
• Analysis
• Interpretation
•
•
 Functions of
statistics
• Definiteness
• Condensation
• Comparison
• Formulating & Testing
Hypothesis
• Prediction
• Formulation of policies
 Scope of Statistics
• Statistics & State
• The concept of state has changed from
that of simply maintaining law and
order to that of a welfare state
• These statistics help in framing
suitable policies

• Statistics in
Business &
Management
• The use of statistical method in the
solution of business problem dates
almost exclusively to the 20 th

Scope of Statistics
• Statistics &
Economics
• Economics is concerned with the
generation and distribution of
wealth as well as with the
consumption , savings and investment
of income
• Statistical data and method plays a
very important role

• Statistics &
Physical Sciences
• The physical sciences specially
• Statistics &
Natural Science
• Statistical techniques have proved to
be extremely useful in statistical
natural sciences for e . g . in
diagnosing the correct disease the
doctor has to rely in factual data
like temperature of body , pulse
rate , blood pressure

• Statistics &
Research
• Statistics is indispensible in nature
in research work
• Most of the advancement in knowledge
• Statistics & I . T
• Statistics in the form of data
processing , a way of converting
data into information useful for
decision making
• Processing of raw data is extensively
required in the application of many
statistical methods

• Statistics & other

uses
• Statistics are immensely useful to
politician and their supporters ,
social workers , labour union and
trade unions
 Statistical Data
• Statistical investigation is
a long and comprehensive
process and requires
systematic collection of
data in large size .
• Statistical data may be
classified as Primary Data
and Secondary Data based on
the sources of data
collection .
 Types of Data
• Primary Data : The Data
originally obtained in the
process of Investigation
are known as primary data .
• Secondary Data : Secondary
Data are those which has
already been collected by
some other person for their
usage . It is the data taken
from published or
unpublished records
 Primary Vs Secondary
Data
• Primary data are originated
by researcher for
specific purpose / study
at hand while secondary
data have already been
collected for purpose
other than research work
at hand .
• Primary data collection
requires considerably
more time , relatively
expensive . While the
 Sources of Primary
data
• Primary source
 The various method of
collection of primary data are
as follows


• Direct personal
investigation
– Interview
– Observation
• Indirect or oral investigation
• Information from local agents
 Sources of Secondary
Data
• Published Statistics
• Publications of Semi -
government organisation
• Publication of research
institutes
• Publication of Business and
Financial Institutions
• News papers and periodicals
• Reports of various committees
and commissions
• Unpublished statistics
Classification
and Tabulation
 Definition of
Classification
 “ Classification is the process
of arranging data into sequences
and groups according to their
common characteristics or
separating them into different
but related parts .”


- Secrist
 “ The process of grouping large
number of individual facts and
observations on the basis of
similarity among the items , is
 Meaning of
Classification
• Classification is a process of
arranging things or data in
groups or classes according to
their resemblances and
affinities and gives
expressions to the unity of
attributes that may subsit
among a diversity of
individuals .
Objectives / purposes of
classifications
Ø To simplify and condense the large
data
Ø To present the facts to easily in
understandable form
Ø To allow comparisons
Ø To help to draw valid inferences
Ø To relate the variables among the
data
Ø To help further analysis
Ø To eliminate unwanted data
Ø To prepare tabulation
 Important types of
classification
• Geographical (i.e. on the basis of
area or region wise)
•
• Chronological(On the basis of
Temporal / Historical,
 i.e. with respect to time)
• Qualitative(on the basis of
character / attributes)
•
• Numerical, quantitative (on the basis
of magnitude)
 Geographical
Classification
 In geographical classification, the classification is based
on the geographical regions.


 Ex : Sales of the company (In Million Rupees) (region – wise

Region Sales

North 285

South 300

East 185

west 235
 Chronological
Classification
• If the statistical data are classified according to the time
of its occurrence, the type of classification is called
chronological classification.
• Sales reported by a departmental
store
Month Sales
(Rs. in lakh)

January 22
Feb 26
mar 32
apr 25
may 27
jun 29
jul 30
aug 30
 Qualitative
Classification
In qualitative classifications , the
data are classified according to
the presence or absence of
attributes in given units . Thus ,
the classification is based on
some quality characteristics /
attributes .
Ex : Sex , Literacy , Education , Class
grade etc .
 Further , it may be classified as
 a ) Simple classification b )
Manifold classification
Simple classification : If the
classification is done into only
two classes then classification is
 Manifold classification :
• In this classification, the classification is based on more
than one attribute at a time.

Population

Smokers Non - smokers

Litera Illiter Litera Illiter

te ate te ate

Male Femal Male Femal

e e

Male Femal Male Femal

e e
 Quantitative
Classification
 In Quantitative classification , the
classification is based on quantitative
measurements of some characteristics , such
as age , marks , income , production , sales etc .
The quantitative phenomenon under study is
known as variable and hence this
classification is also called as
classification
Marks
by variable .
No. of students
For a 50 marks test , Marks obtained by students
0 – 10 5
as classified as follows
10 – 20 7

20 – 30 10

30 – 40 25

40 – 50 3

Total Students = 50
 Meaning and Definition
of Tabulation
•
 Tabulation may be defined
as “ systematic arrangement of
data is column and rows ”. It
is designed to simplify
presentation of data for the
purpose of analysis and
statistical inferences .

 Major Objectives of
Tabulation
• To
simplify the complex data
• To
facilitate comparison
• To
economies the space
• To
draw valid inference /
conclusions
• To help for further analysis
 Differences between
Classification and Tabulation
•
• First data are classified and
presented in tables ;
classification is the basis
for tabulation .
• Tabulation is a mechanical
function of classification
because is tabulation
classified data are placed in
row and columns .
• Classification is a process of
statistical analysis while
tabulation is a process of
RTANCE & LIMITATI
 IMPORTANCE OF STATISTICS

ØSTATIATICS IN MATHMATICS : It
is applicable the theory
of integration ,
differentiation , algebra ,
trigonometry , matrices &
determinants etc have been
established .
ØSATISTICS IN ECONOMICS : It is
greatly useful economical
policy , consumption ,
distribution , wages ,
Ø
ØSTATISTICS IN BUSINESS
MANAGEMENT : All operations
like production , purchase ,
marketing , sales & finance
use statistics advantage .


ØSTATISTIC AS IN FINANCE &

ACCOUNTING : It is useful in
formulating strategic &
short range economic
policies for budget income ,
expenditure , investments ,
savings & planning .
 Limitations of Statistics:
ØIt is not an exact science
ØStatistical results depends on
the accuracy of data .
ØStatistical conclusions are
not universally true .
ØStatistical results can be
interpreted only if person
has sound knowledge of
statistics .



ØDoes not deal with

individual items .
ØStatistical results are true
only on an average .
ØStatistical data should be
uniform and homogeneous .
Ø
VERY MUCH