Introduction:
Statistics is a branch of mathematics that deals with the collection, analysis, interpretation, and presentation of data. It is a tool used in various fields like science, medicine, business, economics, etc., to make decisions based on data. In economics, statistics is used to analyze economic data and to make predictions about future trends. Statistics can be defined as numerical statements of facts in any department of inquiry, placed in relation to each other.

Explanation of the statement:
The statement emphasizes the importance of statistics in various fields of inquiry. It suggests that statistics provides a way to quantify data and to compare it with other data. Statistics can be used to make informed decisions based on the data available. By placing the data in relation to each other, statistics can reveal patterns and trends that may not be visible otherwise.

Limitations of statistics in economic analysis:
Although statistics is a powerful tool in economic analysis, it has its limitations. Some of the limitations are:

1. Data accuracy: The accuracy of economic data is essential for reliable statistical analysis. However, data collection methods may be flawed, leading to inaccurate data.

2. Sample size: The sample size used in statistical analysis is crucial. A small sample size may not be representative of the population, leading to incorrect conclusions.

3. Causality: Statistics can only show a correlation between variables and cannot establish causality. Economic variables are often complex, making it difficult to determine the cause and effect relationship between them.

4. Biases: Statistical analysis may be biased due to researchers' personal biases or the biases in the data collection process.

5. Assumptions: Statistical analysis is based on assumptions about the data. Violation of these assumptions can lead to inaccurate conclusions.

Conclusion:
Statistics is an important tool in economic analysis. It provides a way to quantify data and to make informed decisions based on the data available. However, statistics has its limitations, and it is essential to be aware of them when using statistical analysis in economic research. By understanding the limitations of statistics, researchers can ensure that their analysis is accurate and reliable.