Importance and Distrust of Statistics
Statistics is an inevitable tool for an economist to analyse various economic problems. Statistics is important for the study of consumption, production, exchange, and distribution and for planned development. The limitations of statistics are
It is not useful for individual cases.
It ignores qualitative aspects.
It deals with average only.
Improper use of statistics can be dangerous.
It is only a mean, not an end.
It do not distinguish between cause and effect and
Its results are not always dependable
The distrusts of statistics are:
Figures may be incomplete, inaccurate and deliberately manipulated.
Statistics can prove whatever it wants and
Statistics are tissues of falsehood
The distrust of statistics can be removed by Self control, being used by experts, considering the limitations of statistics in mind.
Statistics is both a science and an art. As a science statistical methods are generally systematic and based on fundamental ideas and processes. It also works as a base for all other sciences. As an art it explores the merits and demerits, guides about the means to achieve the objective.
Analysis of the statistical data requires the study in two ways:
One is empirical analysis: It implies the study of correlation between different variables.
The second is quantitative analysis: It implies the study of statistics by using the techniques such as census, sample surveys and drawing conclusions on their basis.
The reasons for empirical and qualitative analysis of statistical data are:
To study the nature of problem
To study nature of variables
To formulate economic policies
To enhance knowledge
For budgetary analysis
To Access the full content, Please Purchase
We want to know how the producer chooses what to produce for the market given costs and prices. This is the study ofMarks:1
We want to know how the producer chooses what to produce for the market given costs and prices. This is the study of Production.
The study of consumption deals withMarks:1
The study of consumption deals with the consumer decisions like how the consumer decides, given his income and many alternative goods to choose from.
Intelligence is an example ofMarks:1
Intelligence, beauty, etc. are examples of qualitative facts.
When economic facts are expressed in statistical terms, they becomeMarks:1
Facts become exact when they are expressed in statistical terms. Exact facts are more convincing than statements.
Statistics is a/anMarks:1
both science and art
Statistics is both science and art. Economics is a science because it is a systematic study of economic activities of human beings. It is an art because it implies practical application of knowledge with a view to achieve some specific objectives.