B.Com 1st Year Introductory Short Notes Question Answer :- In this post You will Find B.com Notes Study material Unit Wise Chapter Wise Topic Wise division of the content. This Post is very useful for all the Student B.A., B.Sc., B.Com., M.A., M.Com.
SHORT ANSWER QUESTIONS
Q.1. Define statistics. 2014)
Ans. Statistics has been derived from the Latin word ‘Status’ or the French word ‘Statistique which means “a political state. Statistics is that branch of knowledge which is related to the numerical facts. It is used in plural as well as singular sense. In plural sense, it refers to the description of numerical facts which are presented systematically while in singular sense, it refers to the statistical methods and principles used for the classification and analysis of a quantitative data so as to arrive at valid conclusions.
Statistics are the classified facts representing the conditions of the people in a state especially those facts that can be stated in number or in tables of numbers or in any tabular or classified arrangement’.
‘Statistics are numerical statement of facts in any department of enquiry placed in relation to each other,
‘Statistics means quantitative data affected to a marked extent by multiplicity of causes!
Apart from all these definitions, statistics has some traditional as well as modern approaches. Traditionally, statistics may be called as the science of counting as according to Prof. A.L. Bowley.
Buddington defines it as the science of estimates and probabilities.
(Statistics may be defined as the collection, presentation, analysis and interpretation of numerical data.) —Croxton and Cowden
The definition of statistics given according to the modern concepts, makes the scope of the subject comprehensive.
Statistics is the science that deals with classification and tabulation of numerical facts as the basis for explanation, description and comparison of phenomenon.-Prof. Covitt
‘Statistics may be regarded as a body of methods for making wise decisions in the face of uncertainty.-Wallis and Roberts
‘Statistics is a method of decision-making in the face of uncertainty on the basis of numerical data and calculated risks’.–Prof. Ya-Lun-Chon
‘Statistics is the science and art of handling aggregate of facts-observing, enumerating, recording, classifying and otherwise systematically treating them!-Harlow
Q.2. Give the main divisions of the study of statistics.
Or Define the subject matter of statistics.
Ans. Statistics deals with the various tools that are applied to specific problem. The subject-matter of statistics can be divided into the ahead broad divisions:
1. Statistical Methods: These are the tools that are used for the proper and systematic handia the numerical data and they include all the operations involved in presentation, analysis interpretation of data.
2. Descriptive Statistics: It involves techniques for summarising data and presenting them in a usable form. It comprises methods concerned with collecting and describing a set of data so as to yield meaningful Science information.
3. Inductive Statistics: These include those methods which fruit and statistics without help in estimating indirectly a phenomenon on the basis of partial science, have no root data. It is also used to do forecasting.
4. Inferential Statistics: It includes all those methods which help in drawing inferences about the universe on the basis of analysis of samples. Its important methods are probability theory and different techniques of sampling test.
5. Applied Statistics: Applied statistics deals with the application of statistical methods to the specific problems or concrete forms. Statistics that relate to the national income, industrial and agricultural production, etc. are applied statistics which can be further divided into:
(a) Descriptive Applied Statistics: It deals with the study of such data that are known and that relate to the present or the past.
(b) Scientific Applied Statistics: It deals with the formulation of definite laws, etc. relating to a specific problem.
Q.3. Statistics is said to be both science and art. Explain.
Or Discuss the nature of statistics.
Ans. Statistics is a systematic study of knowledge that possess the qualities of science:
1. Knowledge is systematic and its methods are logical.
2. Laws are based on the cause and effect relationship.
3. Laws are universal.
4. They are capable of forecasting the future course of action of a phenomenon. Statistics helps other sciences to derive their own laws. It is not a science but a scientific method. Statistics possess the characteristics of art also:
1. It is a group of actions to solve a problem.
2. It does not describe facts, but examines merits and demerits and tells the way to achieve objectives.
3. It possess special skill, experience and restraint.
Statistics is an art of applying the science of scientific method that gives us solutions of van problems with the help of index numbers, etc.
Thus, statistics is both science and art. It is a science as its methods are basically systematic have general applications. It is an art as its successful application depends to a considerable deg on the skill and special experience of a statistician.
Q.4. ‘Statistics is the science of counting’. Discuss.
Ans. Science refers to a systematised body of knowledge. It studies cause and effect relatio and attempts to make generalisation in the form of scientific principles of laws. It describes objec and avoids vague judgements as good or bad. Like other sciences, statistical methods are also us answer the questions like-How an investigation should be conducted? In what way the valid and conclusions can be draw..? How far these conclusions are dependable? Hence. Statistics is a science science of statistics is different from Physics, Chemistry, etc. Statistics is called the science of s methods. That is why some statisticians do not consider it as a pure science but a scientific method.
“As science, the statistical method is a part of the general scientific method and is based on fundamental ideas and processes’.
Q.15. What is statistical thinking?
Ans. Statistical thinking is a form of logical thinking and is a part of our daily uves. When we say that something or somebody is typical, we are thinking in terms of statistical averages, and departure from this type is statistical variation. When we generalise from a few cases to a very large number, we are using sampling methods. A conclusion that two things always go together involves a pattern of thinking found in statistical correlation. When we mention that the cost of living has gone up by cope a certain period, we are thinking of index numbers. Hence, statistical thinking is not alien to everyday thinking, but is a scientific form of it.
The statistical approach though universal in its underlying ideas, must be tailored to the paranda of each concrete problem to which it is applied. It is dangerous to apply statistics in cook DOOR Sly the same recipes over and over, without careful study of the ingredients of each new problem.
Q.6. Discuss the functions of statistics.
Ans. The functions of statistics are as follows:
1. To Present Facts in a Definite Form: Without a statistical study our ideas are likely to be vague, indefinite and hazy, but figures help us to represent things in their true perspective. Thus facts are presented in a definite and unambiguous form. For instance, the statements that some students out of 100, who had appeared for a certain examination, were declared successful would not give as much information as the one that 94 students out of 100 who took the examination were declared successful.
2. To Simplify Unwieldy and complex Data so as to Make them Understandable: It is not an easy job to treat large numbers and hence they are simplified either by taking a few figures to serve as a representative sample or by taking average to give a bird’s eye view of the large masses. For instance, the data may be condensed in the form of a table, graph or diagram or through an average, ratios or rates.
3. Statistics is a Technique of Making Comparisons: Once the data are simplified, they can be correlated and compared. The relationship between two different groups is best represented by certain mathematical quantities, such as averages, coefficients, rates and ratios.
4. Statistics Helps in Correlating Data: Correlation in statistics means how changes in one phenomenon or variable lead to changes in another phenomenon or variable. For example, greater rainfall should normally lead to greater agricultural production; greater wages should lead to greater productivity; greater price should lead to lesser demand but greater supply and so on. Statistics helps to study such inter-dependent changes with the help of correlation analysis. Besides, it describes and analyses, in definite terms, the direction of change and the nature and degree of association between different inter-dependent phenomena or variables.
5. Statistics Formulates and Tests Hypothesis: Different hypothesis or laws in all fields of human effort can be formulated and tested with the help of statistics. Whether it is the effect of space travel on human body, or the speed of a planet, or the effect of a medicine, or the effect of price rise on the demand of a product, statistics must be used.
6. Statistics Helps in Framing Policies: Statistics aids government and the business to frame policies to pursue their objectives and goals, since it summarises and analyses data and thus helps in forecasting. Suppose the government wants the per capita income to grow so that weaker sections of the society get the maximum benefit, statistics will come to its aid.
7 Enlarges Individual Knowledge and Experience: Statistics enlarges knowledge of complex phenomenon and to lend precision to our ideas that would remain indeterminate. Statistics increases the field of mental vision.
8. Helps in Forecasting: Almost all our activities are based on estimates about future and the forecasting of future trends is a prerequisite for efficient implementation of policies. The statistical techniques for extrapolation, time series and forecasting are highly useful for forecasting future events.
Q.7. ‘There are three degrees of lies-lies, damned lies and statistics’. Comment.
Or “Statistics are like clay of which you can make a God or Devil as you please’. Comment. Or Statistics can prove anything. Comment.
Ans. Statistics is the most important science which if used correctly helps those who are concerned with the welfare of mankind. It is wrong to say that statistics can prove anything. They are only cold figures which neither speak nor suggest anything. They never try to prove anything. They can prove anything because statistics is regarded as the third degree of lie. They provide only facts and figures that are innocent. They can be easily believed. It is a human psychology that when facts which are supported by figures come before a man they are easily believed. Statistics is best, the figures do not lie. Statistics are only tools and that too a very delicate tool. They are like of which you can make God or Devil as you please. This proves that ‘Statistics only furnishes a tool though imperfect which is dangerous in the hands of those who do not know its use and deficiency’ Bowley said that ‘Statistics are only tools that are used by one according to his knowledge and in its use.
The science of statistics is most useful servant. Its distrust lies in its use. Those who understand its proper use the science of statistics is of great value and to those who do not understand its use. naturally they give rise to the distrust of statistics.
Q.8. Explain the importance of statistics in trade and commerce.
Or Write definition and importance of statistics.(2014)
Ans. Definition of Statistics: Refer to Section-A, Q.1.
Importance of Statistics: With the development in the statistical techniques, statistics has shown its importance in different disciplines as follows:
1. Importance to State: States have to take greater responsibilities in social matters and to fulfil this, they have to collect information on the economic condition of the people and the resources available in the state. Statistics has become an essential aid to state administration planning.
2. Importance in Economic Planning: Statistics play an indispensable role in planning. It implies a conscious and deliberate action to attain certain predetermined economic aims. Success of economic planning largely depends upon the availability of accurate and reliable statistical data. Success that a plan ‘achieves is also measured by the use of statistical apparatus.
3. Importance in Economics: Statistics is an indispensable tool in all the aspects of economic study. Statistical methods are the tools and appliances of an economists laboratory. The problems in economics cannot be studied without the use of statistics.
4. Importance in Trade and Commerce: Statistics is considered an indispensable tool in the analysis of activities in the field of trade, commerce and industry. Statistical concepts and methous are used in controlling the quality of products to the satisfaction of consumer and the producer. Touay every decision is made with the aid of statistical data and statistical methods in business.
5. Importance of Statistics for Bankers and Insurance Companies: Statistical methods help in economic entities. Bankers have to use statistical methods in credit rating of the customer
insurance companies use variations to find out the financial risk on current life policies we would mature on uncertain future dates. This is done on the basis of life expectancy studies of the policy holders in different age groups which is a statistical work.
6. Importance for Railway and Other Transport Agencies: Railway and other agencies engas in transport business use statistical data in making transport arrangements, determining freights estimating facilities required for passengers.
7. Importance to Common People: Statistics provides factual knowledge to a common and increases his intellectual dimensions regarding prices of different products in different markets, national product, income and expenditure. It enlarges individual experience and knowledge.
Thus, these days, there is no area where statistics are not useful. So, our age is the age of statistics and everything is maintained in the form of statistical data.
Q.9. Explain the relation of statistics with economics.
Ans. Statistics and economics have a close relationship. Statistical methods are required in the study of almost each economic problem. Economists use statistical methods for verifying economic principles and testing hypothesis. In fact, in every branch of economics statistical methods are widely used.
1. Statistics and Consumption: The consumption in statistics reveals standard of living, consumption habits and level of savings, etc, in a society. It reveals the pattern of consumption, i.e. the nature of expenditure on the commodities of necessities and thus provides reliable indication about the stages of economic development.
2. Statistics and Production: It enables us to get the estimation of quantity, value and cost of production. This data facilitates the measurement of national income, study of productivity and water between demand and supply.
3. Statistics and Exchange: It helps to study the conditions of market position of demand and supply, trend of cost, balance of payment, etc. based on the statistical facts.
4. Statistics and Distribution: Statistics play a vital role in the field of distribution. With the help of data, the national income of the country is estimated and steps are taken to solve the problem distribution.
5. Statistics and Public Finance: Public finance is related to the income and expenditure of the government and their adjustments. Statistics play a vital role in this field as with the help of statistical data, the trend of income and expenditure of the government is studied, taxable capacity is measured and the effects of budgetary policies are evaluated.
Thus, data and their statistical use is required in understanding and solving various economic problems like unemployment, poverty, price rise, population, etc.
Q.10. Briefly explain the scope of statistics.
Ans. The scope of statistics is explained as under:
1. The scope is considerably wider than what it was some time back. In modern times, it has become a universal applicable science. It is confined to such facts and figures as are required by the state for its official purposes.
2. Much of the development of statistics is comparatively modern. It is marching forward as a science, probing, testing and developing newer and more refined techniques from other branches of mathematics.
3. All statistics were historic originally. They were all concerned with the past but now-a-days, statistics is very much concerned with the present and future and this important development has become possible by the use of sampling technique and business forecasting.
The scope of statistics has become very wide. It is now applicable to all the branches of human knowledge capable of being reduced to figures. Statistics deals with the collection of quantitative data. Scientific analysis of the influence of multiple causation thereon and finally interpretation of the data so collected and the presentation of the results in an easy manner. The scope of statistics has now stretched over all those branches of human knowledge in which the grasp of the significance of large numbers is looked for.
Q.11. Discuss the application of statistics in the management of business enterprise.
Ans. In order to succeed in any business today the businessman must study all the factors that enter into production, buying and selling, exporting and importing of goods in which he deals. There are numerous uses of statistics in business like project planning, budgetary planning and control, marketing, production purchasing, investment, banking and insurance personnel administration The typical areas where statistics is extensively used are:
1. Market Research: It is necessary to study the habits, tastes, needs and other allied matters of the society and for increasing sales. So, skilful analysis of data of population, competition, advertising, etc. are required to be studied and analysed.
2. Quality Control: Statistical quality control uses statistical methods to gather and analyse data on the determination and control of quality. This technique deals with the randomly selected samples from a population and analysing them.
3. Banking and Insurance: This sector is highly affected successful by general economic and market conditions. There are many ‘ oanks and insurance companies that have their own research and development division which gather and analyse information about the business in which they are involved.
4. Entrepreneuring: The careful study of consumer behaviour, competition in the market and their marketing strategy, availability of resources, etc. must be studied by an entrepreneur. A venture may be a complete failure in the absence of reliable data and faulty interpretations.
5. Personnel Administration: Study of statistical data related to wages, cost of living, incentive plans, effect of labour disputes, etc. and the proper analysis of such data assist the personnel administration to formulate the personnel policies and in the process of manpower planning.
6. Investment: Statistics play an immense role in making sound investment in stocks, shares, debentures, etc. of different companies. All the activities are possible only when reliable statistical data is available.
Thus, statistics affects every business and every individual in one form or the other.