Introduction to Statistics
Introduction, Definition & Scope of Statistic
The word Statistics seems to have derived from the Latin word Status or the Italian word Statistia. Both of these words mean a political State.
According to Sir R.A. Fisher, the science of statistics is "mathematics applied to observational data".
What is Statistics?
Statistics is simply defined as the study and manipulation of data. statistics deals with the analysis and computation of numerical data.
According to the Merriam-Webster dictionary, statistics is defined as “classified facts representing the conditions of a people in a state – especially the facts that can be stated in numbers or any other tabular or classified arrangement”.
According to statistician Sir Arthur Lyon Bowley, statistics is defined as “Numerical statements of facts in any department of inquiry placed in relation to each other”.
He also gave Three more definitions which was not completely acceptable. Those are given below,
- “Statistics may be called the science of counting”
- “Statistics may be called the science of average”,
- “Statistics is the science of the measurement of the social organism, regarded as a whole in all its manifestations”
Also, it is called “the science of decision-making in the field of uncertainty.”
According to Boddington “Statistics is the science of estimates and probabilities.” Which is unacceptable as estimates & Probabilities are only Part of the statistical Methods.
Yule and Kendall defined statistics as: "By statistics, we mean quantitative data affected to a marked extent by multiplicity of causes."
Prof. Horace Secrist defined statistics as follows: "By Statistics, we mean the aggregate of facts affected to a marked extent by multiplicity of causes. numerically expressed, enumerated or estimated according to reasonable standards of accuracy, collected in a systematic manner for a pre-determined purpose and placed in relation to each other."
According to Croxton & Cowden, “Statistics may be defined as the science of collection, presentation, analysis and interpretation of numerical data.” Which is widely acceptable.
Characteristics of Statistics
- Statistics are aggregate or population of facts
- Statistics must be numerically expressed.
- Statistics must be comparable and homogeneous
- Statistics are affected to a considerable extent by the multiplicity of causes
- Statistics are to be enumerated or estimated according to reasonable standards of accuracy
- Statistics are collected in a systematic manner
- Statistics are collected for a pre-determined purpose
Statistical Methods
- Collection of Data
- Organizing the Data
- Presentation of Data
- Analysis of Data
- Interpretation of Data
Functions of Statistics
- It presents facts in a definite form.
- It simplifies mass of figures.
- It facilitates comparison.
- It helps in formulating and testing hypotheses.
- It helps in prediction.
- It helps in the formulation of suitable policies.
Types of Statistics
Basically, there are two types of statistics.
- Descriptive Statistics
- Inferential Statistics
Descriptive Statistics
The data is summarized and explained in descriptive statistics.
The summarization is done from a population sample utilizing several factors such as mean and standard deviation.
Descriptive statistics is a way of organizing, representing, and explaining a set of data using charts, graphs, and summary measures. Histograms, pie charts, bars, and scatter plots are common ways to summarize data and present it in tables or graphs.
Inferential Statistics
Inferential statistics are used to test hypotheses and study correlations between variables, and they can also be used to predict population sizes.
Inferential statistics are used to derive conclusions and inferences from samples, i.e. to create accurate generalizations.
Scope of Statistics
Statistics is used in many sectors such as psychology, geology, sociology, weather forecasting, probability and much more. The goal of statistics is to gain understanding from the data, it focuses on applications, and hence, it is distinctively considered as a mathematical science. Few fields where Statistics is applied are given below
- Statistics & State
- Statistics in Business Management
- Statistics & Economics
- Statistics & Physical Sciences
- Statistics & Natural Sciences
- Statistics & Research
- Statistics is vital in policy formulation and in making a sound decision
- Statistics helps in proper understanding of any problem affecting human welfare
- Statistics is indispensable in social studies
- Statistical methods have their application in natural sciences also
- Statistics is indispensable in government administration
- Statistics is indispensable in economic analysis also
- Statistics is indispensable in business and commerce
- Statistics helps in the formulation of organizational policy and managerial planning.
Limitation of Statistics
- Laws of Statistics are true only in the long run. Statistical expressions are in terms of average, approximation, and probabilities
- It can provide a group average without revealing the individual characteristics
- Statistics is applicable only in quantitative study
- Statistics may produce faulty decisions either due to deliberate manipulation or due to inappropriate use
- Statistics has the chance of being misused
- Statistics only provide the raw material and tool for making judgment and inferences but they do not constitute inferences for any study.
Important of Statistics in Modern Management
Statistics plays an important part in every walk of our life and has proved to be extremely useful in almost every line of scientific & economic enquiry, businessmen, industrial concerns, bankers, insurance companies, public bodies, Govt. departments all largely benefited by the use of statistics.
Modem management is impossible without the assistance of statistics. Decision-making is a major portion of management activity. Managers and executives are under the obligation of making decisions & statistics make relevant figures talk to them during their decision-making. Managers are rated on their ability to make and implement correct decisions because the probability of a firm is dependent upon the cumulative results of many previous decisions. Most of the time it is done by statistical techniques.
Statistics provide a bird’s eye view as it were, of the situation and without them, it would be practically impossible to estimate correct results.
Why should an HR manager study Statistics?
An HR manager should study Statistics because:
- Statistics is vital in policy formulation and in making a sound decision
- Statistics helps in proper understanding of any problem affecting human welfare
- Statistics is indispensable in social studies
- Statistical methods have their application in natural sciences also
- Statistics is indispensable in government administration
- Statistics is indispensable in economic analysis also
- Statistics is indispensable in business and commerce
- Statistics helps in the formulation of organizational policy and managerial planning.
Describe the importance of Statistics in HRM
The world of HR, as well as people in general, can be extremely random. Statistics help to understand, capture, and predict the randomness of our world. It can reduce risk by estimating uncertainties and revealing hidden aspects in day-to-day HR processes.
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