Block 1 FEG 2 Unit 1
Block 1 FEG 2 Unit 1
Block 1 FEG 2 Unit 1
Structure
1.0 Introduction
1.1 Objectives
1.2 Meaning of Statistics
1.2.1 Statistics in Singular Sense
1.2.2 Statistics in Plural Sense
1.2.3 Definition of Statistics
1.3 Types of Statistics
1.3.1 On the Basis of Function
1.3.2 On the Basis of Distribution of Data
1.4 Scope and Use of Statistics
1.5 Limitations of Statistics
1.6 Distrust and Misuse of Statistics
1.7 Let Us Sum Up
1.8 Unit End Questions
1.9 Glossary
1.10 Suggested Readings
1.0 INTRODUCTION
The word statistics has different meaning to different persons. Knowledge of
statistics is applicable in day to day life in different ways. In daily life it means
general calculation of items, in railway statistics means the number of trains
operating, number of passenger’s freight etc. and so on. Thus statistics is used by
people to take decision about the problems on the basis of different type of
quantitative and qualitative information available to them.
1.1 OBJECTIVES
After going through this unit, you will be able to:
Define the term statistics;
Explain the status of statistics;
Describe the nature of statistics;
State basic concepts used in statistics; and
Analyse the uses and misuses of statistics.
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Introduction to Statistics
1.2 MEANING OF STATISTICS
The word statistics has been derived from Latin word ‘status’ or Italian ‘Statista’
meaning statesman. Professor Gott Fried Achenwall used it in the 18th century.
During early period, these words were used for political state of the region. The
word ‘Statista’ was used to keep the records of census or data related to wealth
of a state. Gradually, its meaning and usage extended and thereonwards its nature
also changed.
The word statistics is used to convey different meanings in singular and plural
sense. Therefore it can be defined in two different ways.
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vii) Statistics should be comparable: Only comparable data will have some Introduction to Statistics
meaning. For statistical analysis, the data should be comparable with respect
to time, place group, etc.
Thus, it may be stated that “ All statistics are numerical statements of facts but
all numerical statements of facts are not necessarily statistics ”.
1.2.3 Definition of Statistics
In this unit emphasis is on the term statistics as a branch of science. It deals with
classification, tabulation and analysis of numerical facts. Different statistician
defined this aspect of statistics in different ways. For example.
According to Selligman “Statistics is the science which deals with the methods
of collecting, classifying, presenting , comparing and interpreting numerical data
collected to throw some light on any sphere of enquiry”.
Among all the definitions , the one given by Croxton and Cowden is considered
to be most appropriate as it covers all aspects and field of statistics.
Though various bases have been adopted to classify statistics, following are the
two major ways of classifying statistics: (i) on the basis of function and (ii) on
the basis of distribution.
There are certain basic assumptions of parametric statistics. The very first
characteristic of parametric statistics is that it moves after confirming its
population’s property of normal distribution. The normal distribution of a
population shows its symmetrical spread over the continuum of –3 SD to +3 SD
and keeping unimodal shape as its mean, median, and mode coincide. If the
samples are from various populations then it is assumed to have same variance
ratio among them. The samples are independent in their selection. The chances
of occurrence of any event or item out of the total population are equal and any
item can be selected in the sample. This reflects the randomized nature of sample
which also happens to be a good tool to avoid any experimenter bias.
However, along with many advantages, some disadvantages have also been noted
for the parametric statistics. It is bound to follow the rigid assumption of normal
distribution and further it narrows the scope of its usage. In case of small sample,
normal distribution cannot be attained and thus parametric statistics cannot be
used. Further, computation in parametric statistics is lengthy and complex because
of large samples and numerical calculations. T-test, F-test, r-test, are some of the
major parametric statistics used for data analysis.
Nonparametric statistics are those statistics which are not based on the
assumption of normal distribution of population. Therefore, these are also known
as distribution free statistics. They are not bound to be used with interval scale
data or normally distributed data. The data with non-continuity are to be tackled
with these statistics. In the samples where it is difficult to maintain the assumption
of normal distribution, nonparametric statistics are used for analysis. The samples
with small number of items are treated with nonparametric statistics because of
the absence of normal distribution. It can be used even for nominal data along
with the ordinal data. Some of the usual nonparametric statistics include chi-
square, Spearman’s rank difference method of correlation, Kendall’s rank
difference method, Mann-Whitney U test, etc.
Self Assessment Questions
1) State true/false for the following statements
i) Parametric statistics is known as distribution free (T/ F)
statistics
ii) Nonparametric tests assume normality of distribution (T/F)
iii) T test is an example of parametric test (T/F)
iv) Nonparametric tests are not bound to be used with (T/F)
interval scale.
v) Parametric tests are bound to be used with either (T/F)
interval or ratio scale.
vi) In case of small sample where normal distribution (T/F)
can not be attained, the use of nonparametric test is
more appropriate.
2) Define the term sample and population with one example each.
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Introduction to Statistics
1.4 SCOPE AND USE OF STATISTICS
Statistical applications have a wide scope. Some of the major ones are given
below:
Problem solving: Knowing the useful difference between two or more variables
enable the individual to find out the best applicable solution to a problem situation
and it is possible because of statistics. During problem solving statistics helps
the person analyse his/ her pattern of response and the correct solution thereby
minimising the error factor.
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Introduction to Statistics Theoretical researches: Theories evolve on the basis of facts obtained from the
field. Statistical analyses establish the significance of those facts for a particular
paradigm or phenomena. Researchers are engaged in using the statistical measures
to decide on the facts and data whether a particular theory can be maintained or
challenged. The significance between the facts and factors help them to explore
the connectivity among them.
Statistics deals with aggregate of facts. It cannot deal with single observation.
Thus statistical methods do not give any recognition to an object or a person or
an event in isolation. This is a serious limitation of Statistics.
Statistical conclusions are true only on the average . Thus, statistical inferences
may not be considered as exact like inferences based on Mathematical laws.
There are many other fields like, agriculture, space, medicine, geology, technology,
etc. where statistics is extensively used to predict the results and find out precision
in decision.
Self Assessment Question
1) Write three application of statistics in daily life.
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Introduction to Statistics
2) List atleast two misuses of statistics.
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Introduction to Statistics
1.9 GLOSSARY
Statistics in singular sense : In singular sense, it means scientific methods
for collection, presentation, analysis and
interpretation of data.
Statistics in plural sense : In plural sense it means a set of numerical
scores known as statistical data.
Correlational statistics : The statistics which speaks about one or more
than one variable’s positive or negative
magnitude of relationship.
Descriptive statistics : The statistics which describes the tendency or
variance of the scores in a distribution.
Inferential statistics : The statistics that enable the researchers to
have some conclusions about population or
events on the basis of past or observed
observations.
Non parametric statistics : The statistics free from the assumptions of
normal distribution.
Parametric statistics : The statistics based on assumptions of normal
distribution
Statistics : The branch of mathematics that deals with
inferring the chances of a particular pattern
of population or events on the basis of
observed patterns..
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