Please enable JavaScript.
Coggle requires JavaScript to display documents.
Statistics - Chapter 1 - Coggle Diagram
Statistics - Chapter 1
-
Economics: It is the study of how a society chooses to employ its scarce resources that have alternate uses to produce goods to satisfy the wants and distribute them for consumption among various people in the society.
-
-
-
Economics studies:
Production: Economics studies producers and their decision making in what product to make, how to produce it and what price to sell it at.
Consumption: Economics studies how a consumer chooses products given their income and many alternative goods to choose from.
Distribute: Economics studies how the national income or GDP is distributed through wages, salaries, profits and interest.
Other: Economics also studies the socio-economic issues of unemployment, poverty, etc.
-
Statistics definition: Statistics is the science of collecting, classifying and tabulating data for the purpose of explaining, describing and comparing phenomenon.
-
-
This data then needs to be classified, tabulated and presented.
Singular sense: Refers to the techniques or methods used to collect, classify, tabulate, present, analyze and interpret quantitative data.
-
All statistics are data but all data is not statistics. Statistical data are always aggregative or average.
-
-
Features
Statistics are an aggregate of facts: A single number does not constitute statistics. Only when numbers are placed near each other and conclusions can be drawn from it, it is classified as statistical data.
It is numerically expressed: Statistics are expressed only as numbers. Qualitative aspects of a problem do not classify as statistics but are still used in economics.
Statistics have reasonable standards of accuracy: It is reasonably accurate but has its own limitations. Accuracy depends on:
-
-
-
-
Statistics are placed in relation with each other: Statistics need to be comparable. i.e. They should be placed in such a way that they can be compared.
Limitations
-
-
-
-
-
Most statistics are averages and only study broad tendencies. The laws of statistics are not universally applicable.