DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name Staff Member : P. MADHAVI
Designation : Lecturer
Branch : DCCP
Institute : Govt. Polytechnic, NELLORE
Year/Semester : III Semester
Subject : Quantitative Techniques-I
Sub. Code : CCP-303
Topic : Introduction to Statistics,
Data Collection & Methods
Duration : 50 Mts.
Sub Topic : Importance of Statistics &
Limitations of Statistics
Teaching Aids : Tables
CCP303.2 & Clip art pictures 1
Objectives :

On completion of this period, you would be

able to know:
 Importance of Statistics

 Limitations of Statistics

CCP303.2 2
Answer these questions…

CCP303.2 3
 What do you understand by Statistics ?

 State any two functions of Statistics ?

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Recap
Statistics is:

 A tool to collect information

 A means for handling and analyzing data

 A tool for intelligent decision making

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IMPORTANCE OF STATISTICS

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Statistics is widely used in modern times

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 Statistics - Uses:

 When a mass of quantitative data need

simplification and analysis

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 Statistics - Uses:

 When estimates are made for certain

unknown and uncertain events based on
past experience or on available
information

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KEY AREAS OF STATISTICS
APPLICATION

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Statistics to State

The major areas are :

 Government Planning
 Annual Budget
 Five Year Plans
 Population Census

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 Contd…
Statistics to State
 Production & Consumption
 Investments & incomes
 Savings & spending patterns
 Prices (inflation)
 Money supply
 Forex reserves etc.

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 Statistics widely used in government

departments.

 All departments have statistical units

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Statistics in Economics:

 Formulation of Economic Laws

 Study of Economic Problems

 Compilation of National Income Accounts

 Economic Planning

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Statistics in Business:
 Location and Size Decision

 Study of Demand

 Production Planning

 Quality Control

 Marketing Decisions

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Statistics in Business Contd…
 Planning Future Operations

 Inventory Control

 Personnel Administration

 Accounts and Auditing

 Operations Research

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Other Areas :
 Mathematics

 Natural Sciences

 Social Sciences

 Meteorology

 Space Research

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Other areas Contd…

 Insurance

 Financial Services

 Statistics and Polity

 Other Disciplines

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LIMITATIONS OF STATISTICS

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Demerits
Statistics
 Does not study qualitative phenomenon

 Does not study individual events

 Results are true only on an average

 Laws are not exact

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Demerits Contd…

 Do not reveal the entire story

 No ‘Cause’ and ‘Effect’ relationship

 Cannot be applied to any situation

 Is liable to be misused

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Would you like to ask
any questions?

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Summary
In this class , you have learnt that
statistics are very useful in
1. Govt. Depts.
2. Business sector
3. Services sector
4. Other areas

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Summary

Limitations of statistics includes:

• No study of individual events
• Laws are not exact etc.

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Quiz
1) Statistics is --

(b) A science of control

(c) Simply an art of presenting facts

(d) A science of state-craft

(e) One which helps in analysing quantitative facts

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2. Misuse of statistics --
(b) Is not possible

(c) Is only unintentionally done

(d) Is sometimes intentionally done

(e) None of the above

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Frequently Asked Questions

2. Explain the importance of Statistics?

3. Explain the limitations of Statistics?

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