Business Statistics Notes for Business and Commerce Department

Business Statistics Business Administration-2k13

Compiled by: Seetal Daas University of Sindh Laar Campus @ Badin 1

CHAPTER 1

INTRODUCTION

Origin & growth of Statistics

The word Statistics has been derived from;

Latin word status, Italian word Statista, German word Statistik means a ‘Political State’

or The state means art.

The word statistics is found in Shakespeare’s Hamlet (1602 A.D).

In Milton’s ‘Paradise Regained’ (1671 A.D) which is used in the sense of a person

who is well versed in State matters, Helping High Officers and framing government

Policies.

W.Hooper in 1770 A.D used the word Statistics in his translation of elements of

Erudition well known book of the ancient times which was written by the Baron B.F

Bielfel contains definition of the subject as the science that teach us what is Political

arrangement all the modern states of know world.

In 1787 European Professor E.A.W Zimermann defined the world Statistics as the

branch of Political knowledge which has relative Power of the several modern states

the power arising from their natural advantages the industry and Civilization of their

inhabitants and the wisdom of their Government.

In the 18th

century the term ‘Statistical Inquiry’ was used by John Sinclair as ’Inquiry

respecting’ the population the political circumstances, the Production of a country and

their matter.

During 18th

century the term statistics became more popular & began to be used in the

sense of numerical Royal statistical Society was founded in England in 1834.

Meaning of Statistics

The word Statistics is used in two different senses plural and singular , and its plural form

it refers to the numerical data, collected in systematic manner with some definite aim or

object in view such as number of persons suffering from Malaria in different colonies of

Badin.



In the singular form the word statistics means the science of statistics or the subject itself.

It includes methods and principles concerned with collection, analysis and interpretation

of numerical data.

Relationship of Statistics with other Science

1. Statistics and Commerce

a) Organization of Business

b) Production

c) Scientific Management & Business forecasting

d) Purchases

2. Statistics & Economics

a) Consumption

b) Production

c) Exchange

d) Public Finance

e) Input-output analysis

3. Statistics & State affairs

4. Statistics & Economics Planning

5. Statistics & Mathematics

6. Statistics & Astronomy

7. Statistics & Meteorology

8. Statistics & Agriculture

9. Statistics & Biology

10. Statistics, Maths & Economics



CHAPTER # 2

CHARATERISTICS & DIVISION OF STATISTICS

Statistic’s Definition:

“Statistics are aggregate of facts affected to a marked extent by the multiplicity of causes

numerically expressed ,enumerated or estimated according to a seasonable standard of

accuracy ,collected in a systematic manner, for a predetermined purpose and place in

relation to each other”(by: Horace Secrist)

Modified Definition of Statistics:

“Statistics are the numerical statements of facts capable of analysis and interpretation and

the science of Statistics is the study of the principle and the methods in collecting

presenting analysis and interpreting the numerical in any field of inquiry”.

Characteristics

1) Statistics are aggregate of facts

2) Statistics are affected to a marked extent by multiplicity of cause

3) Statistics are numerically expressed

4) Statistics are estimated according to a reasonable standard of Statistics

5) Statistics must be collected in systematic manner

6) Statistics must be collected for predetermined purpose

7) Statistics must be placed in relation to each other

Division of Statistics

1) Statistical Method

2) Applied Statistics

2.1) Description applied Statistics

2.2) Scientific applied Statistics



Statistical Method:

It is include all the definite rules of procedure and techniques which are used in the

collection, classification, tabulation comparison and interpretation of data relating to any

particular inquiry. Or

Statistical Methods are devices by which complex and numerical data are systematically

treated so as to present comprehensive and intelligible view of them.

Steps of Statistical Method

1) Collection of Data 2) Classification of Data 3) Tabulation of Data 4)Presentation

of Data 5)Interpretation of Data 6) Forecasting

Importance of Statistics

1) Statistics discloses casual connection between related facts.

2) Statistics are an aid to supervision.

3) Statistics are the eyes of Administration.

4) Planning w/o statistics cannot be imagining.

5) Statistics is indispensable in social studies.

6) Statistics is indispensable for state.

7) Statistics constitute a record of the part knowledge.

8) Statistics is the arithmetic of human welfare/wellbeing.

9) Utility to Bankers.

10) Utility in Agriculture.

11) Utility in Insurance Companies.

12) Utility of Government.

13) Utility to Brokers, Speculators & Investors.

14) Utility to Business & Management.

15) Usefulness in Commerce.

16) Importance in Economics.

17) Desirability in Research.

18) Universal Applicability.

Limitation of Statistics

A. Statistics Laws are true on the average

B. Statistics does not study quantitative phenomenon



C. Statistics does not study Individuals

D. Statistics cannot applied on heterogeneous data

E. Statistics is liable to be misused

Functions of statistics

1) Statistics simplifies complexities

2) Statistics enlarged Individuals experience

3) Statistics tests the Laws of other Sciences

4) Statistics guide in forming policies

5) Statistics enables realization of magnitude

Functions of Statistician

1) A Statistician first of all draws a plan of the inquiry

2) He decides the scope of inquiry

3) He supervise the work of the field investigators who are appointed in the collection

of the data

4) He prepares a suitable questionnaire for conducting the inquiry

5) He presents the data collected by the investigators

6) He conducts the various statistical parameters of the data collected

7) He draws certain conclusions from the various statistical parameters, thus

computed by interpreting the data

8) He forecasts the happenings of various phenomenons with the help of the

conclusion drawn



CHAPTER #3

DATA

Preliminaries to the collection of data

1) Object & Scope of inquiry

2) Nature & Type of inquiry

3) Statistical Units

4) Degree of accuracy

2) Nature & Type of inquiry

Primary or Secondary data

Census or Sample

Open or Confidential

Direct or indirect

Regular or Adhoc

Collection of Primary and Secondary Data

1) Direct Personal Investigation: collecting data by you.

Advantages

This information collected by this method is reliable and accurate.

It is a good method for intensive investigation.

This method gives a satisfactory results provided scope of inquiry narrow.

Disadvantages

This method is not suitable for extensive inquiry.(e.g. population)

It requires a lot of expenses at time.

This bias on the part of investigator can damage the whole inquiry.

Sometimes the information may select to the answer the question.

2-Indirect Personal Investigation: collecting data by asking question from surrounding.

a) Precautions of collecting Indirect Personal Investigation.



Informant should;

Have full knowledge of the problem.

Be in a position to expenses by him correctly.

Be free from bias.

Not gives color to the facts.

b) More ever proper allowance should be made for the inherent optimism or pessimism of

the informant .e.g. if informer suffers due to you by information, you have to compensate

him.

c) Absolute reliance should not be given to the information given by one person but a

number of persons should be interviewed to express their news.

Advantages

It is less expensive and takes less time.

The information is collected from witness who does not feel shy in giving the exact

information.

It is a good method for conducting an extensive inquiry.

Disadvantages

Sometimes the time taken by the witness in replying the questions may be the pretty

long.

It is possible that the witness may not have full knowledge of the problem.

3-Investigation through questionnaire: according to this method a list of standard of

question relating to the particular investigation as prepare this list of question is called

questionnaire.

Advantages

It is the less expensive.

Collection of information can be from wide area.

This method can ensure a reasonable standard of accuracy.

Disadvantages

Most of the informants do not take the trouble of filling in the questionnaire &

sometime do not even the return the questionnaire.



Those who answer the questions give vague answer, those may be many errors in the

answer because there will be none to the explain questionnaire.

Precaution

a) A policed letter should be written to the informant emphasing the needs and the

usefulness of the problem under investigation.

b) choice of questionnaire: i) questions should be clear and understanding ii) they should

be few in number & easy iii) question should cooperative in nature.

4- Investigation through questionnaire by enumeration:

Advantages

This method is very useful for extensive inquiry.

In this method there is not expectation of vague answer.

Answers supplied are complete.

No-time wasted in collecting the questionnaire since the enumerates collect himself.

Disadvantages

This method is very expensive.

Accuracy in this methods depends upon the proper choice and training of enumerates.

5-Investigation through reports: investigating by different reports concerned with

problem.

6- Investigation through websites: visiting different website for collecting the data and

investigating the collected data for handling the problem.

Classification of Data

Characteristics of ideal classification given below;

1) It should be unambiguous.

2) Classes should be exhaustive & manually exclusive.

3) It should be stable.

4) It should be flexible.



Basis of Classification

1) Geographical/ Spatial Classification: Investigator should provide clear information

where he is going to investigate e.g. which area, location, places.

2) Chronological Classification: this classification concerned with the continuous time

series and sequence e.g. population of 18 crore from 1998-2014.

3) Qualitative Classification: This classification depends upon the qualities of a person

etc, e.g. a person’s skills, intelligence because these can be observed not measured.

4) Simple Classification: It is concerned with the classification of the data in two section

or parts e.g. considering gender classification ,it can be subdivided into two more section

like male and female.

5) Manifold Classification: it is concerned with the classification of data may be

divided in more section or parts. e.g. same above we take gender divided into two male

and female then more it may be subdivided into rural and urban then color then married

and unmarried etc.

Business Statistics Notes for Business and Commerce Department

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Transcript of Business Statistics Notes for Business and Commerce Department