7.Functions or Uses of Statistics:
Statistics as a discipline is considered
indispensable in almost all spheres of human knowledge. There is hardly
any branch of study which does not use statistics. Scientific, social
and economic studies use statistics in one form or another. These
disciplines make-use of observations, facts and figures, enquiries and
experiments etc. using statistics and statistical methods. Statistics
studies almost all aspects in an enquiry. It mainly aims at simplifying
the complexity of information collected in an enquiry. It presents data
in a simplified form as to make them intelligible. It analyses data and
facilitates drawal of conclusions. Now let us briefly discuss some of
the important functions of statistics.
1. Presents facts in. simple form:
Statistics presents facts and figures in a definite
form. That makes the statement logical and convincing than mere
description. It condenses the whole mass of figures into a single
figure. This makes the problem intelligible.
2. Reduces the Complexity of data:
Statistics simplifies the complexity of data. The raw
data are unintelligible. We make them simple and intelligible by using
different statistical measures. Some such commonly used measures are
graphs, averages, dispersions, skewness, kurtosis, correlation and
regression etc. These measures help in interpretation and drawing
inferences. Therefore, statistics enables to enlarge the horizon of
one's knowledge.
3. Facilitates comparison:
Comparison between different sets of observation is
an important function of statistics. Comparison is necessary to draw
conclusions as Professor Boddington rightly points out.” the object of
statistics is to enable comparison between past and present results to
ascertain the reasons for changes, which have taken place and the effect
of such changes in future. So to determine the efficiency of any
measure comparison is necessary. Statistical devices like averages,
ratios, coefficients etc. are used for the purpose of comparison.
4. Testing hypothesis:
Formulating and testing of hypothesis is an important
function of statistics. This helps in developing new theories. So
statistics examines the truth and helps in innovating new ideas.
5. Formulation of Policies :
Statistics helps in formulating plans and policies in
different fields. Statistical analysis of data forms the beginning of
policy formulations. Hence, statistics is essential for planners,
economists, scientists and administrators to prepare different plans and
programmes.
6. Forecasting :
The future is uncertain. Statistics helps in
forecasting the trend and tendencies. Statistical techniques are used
for predicting the future values of a variable. For example a producer
forecasts his future production on the basis of the present demand
conditions and his past experiences. Similarly, the planners can
forecast the future population etc. considering the present population
trends.
7. Derives valid inferences :
Statistical methods mainly aim at deriving inferences
from an enquiry. Statistical techniques are often used by scholars
planners and scientists to evaluate different projects. These techniques
are also used to draw inferences regarding population parameters on the
basis of sample information.
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