Q.1. Name the two distinct senses in which statistics is used.
Ans. Statistics in two distinct senses: (i) Singular – science of collecting, classifying and using statistics (ii) Plural – numerical facts collected systematically
Q.2. How is statistics defined in singular sense?
Ans. In singular sense, statistics is defined as the techniques or methods which relate to the collection, classification, presentation, analysis and interpretation of quantitative data.
Q.3. How is statistics defined in plural sense?
Ans. In plural sense, statistics imply systematically collected numerical facts, or simply ‘data’.
Q.4. Define data.
Ans. Economic facts in terms of numbers are called data.
Q.5. Give an example each of quantitative and qualitative fact used in economics.
Ans. Quantitative Fact: The population of India increased from 100 crores in 2000 to 130 crores in 2013. Qualitative Fact: Categorising individuals on the basis of their marital status
Q.6. List the stages of statistical study.
Ans. Stages in statistical study are:
(i) Collection of Data
(ii) Classification of Data
(iii) Presentation of Data
(iv) Analysis of Data
(v) Interpretation of Data
Q.7. Write two techniques of collection of data.
Ans. Two techniques of collection of data are:
Q.8. Name the statistical tools used to present the data.
Ans. The statistical tools used to present the data are diagrams, graphs and tables.
Q.9. Write any two functions of statistical methods.
Ans. Statistical methods:
(i) help analyse economic problems; and
(ii) formulate policies to solve them.
Q.10. Define statistics.
Ans. In the words of Seligman, “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.”
Q.11. Explain in brief the stages of statistical study.
Ans. There are five stages of statistical study:
(i) Collection of Data: It is the process of gathering information in order to arrive at an effective solution to an economic problem.
(ii) Organisation of Data: It is the process of classifying the raw data to facilitate further statistical analysis.
(iii) Presentation of Data: It is the process of putting the voluminous data in compact and presentable form.
(iv) Analysis of Data: It is the process of examining, modifying and modelling data with the objective of drawing useful information, suggesting inferences and supporting decision-making.
(v) Interpretation of Data: It is the process of making sense of numerical data that has been collected, presented and analysed.
Q.12. Write down the limitations of statistics.
Ans. Following are the limitations of statistics:
(i) Statistics study only numerical facts.
(ii) Statistics study only aggregate of facts, not individual data.
(iii) Statistics require only homogeneous data.
(iv) Statistics results are true only on the basis of average.
(v) Drawing conclusions without references in statistics increase the possibilities of errors.
(vi) Statistics can only be used by the experts.
(vii) Statistics can be misused.
Q.13. State the characteristics of statistics.
Ans. Characteristics of statistics:
(i) Statistics are aggregate of facts.
(ii) Statistics are numerically expressed.
(iii) Statistics are enumerated or estimated according to reasonable standards of accuracy.
(iv) Statistics are facts affected by multiplicity of causes.
(v) Statistics are placed in relation to each other.
Q.14. How does statistics help in economic forecasting?
Ans. Forecasting in economics implies predicting the nature and impact of economic events on domestic as well as international economy. Statistics provide a scientific base to forecast trends such as price levels, income, employment, interest rates, etc. Accordingly, it uses various statistical tools and techniques to develop solutions to the related economic problems.
Q.15. How are economic policies formulated with the help of statistics?
Ans. Statistical data are used in framing suitable economic policies. Based on the estimated poverty ratios, the government can determine the areas which require implementation of intensive employment generation programmes. Accordingly, the government can allocate its resources in these areas. Similarly, on the basis of export-import data, the government can make necessary changes in the trade policy. Statistics help the government bring about changes in its fiscal and monetary policy.
Q.16. What role does statistics play in finding relationship between economic factors?
Ans. Statistics is used in finding relationships between different economic factors. The economists are usually interested in finding out the impact of change in:
(i) prices on demand for a commodity;
(ii) interest rate on savings/ investment;
(iii) government expenditure on general price level; etc.
Applying statistical methods to data not only check the existence of relationship between various economic factors but also help to determine and verify the relationship between them.