Introduction to Business Statistics

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  1. Meaning & Application
    1. Origin & Development of Statistics
    2. Definition of Statistics
    3. Scope & Application of Statistics
    4. Limitations & Distrust of Statistics </aside>

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  1. Data & Statistics
    1. Data Lexicon
    2. Scales of Measurement
    3. Data Classification
    4. Data Sources & Collection
    5. Descriptive & Inferential Statistics </aside>

Meaning & Application

  1. Origin & Development of Statistics:

    Status(Latin) Statista (Italian) Statistik (German) Political State
    India Europe Germany England
    Chandra Gupta Maurya - 324-300 B.C.): Birth & death records. 17th century: Theory of Probability and Theory of Games & Chance (Modern Statistics) by mathematicians & gamblers of France, Germany & England 18th Century: Population records, industrial & agricultural output. 19th Century: Government revenue & expenditure records.
    Akbar (1556-1605 AD): Land records & agricultural statistics. 20th Century: Application in genetics, biometry, education, agriculture, etc., by Sir Ronald A. Fisher (Father of Statistics).

  2. Definition of Statistics

    1. Statistics as Statistical Data:
      1. Classified facts representing conditions of the people in a State. -Webster
      2. Numerical statements of facts in any department of enquiry placed in relation to each other. -Bowley
      3. Aggregates of facts affected by multiplicity of causes, numerically expressed, collected systematically for a predetermined purpose. -Prof. Horace Secrist
    2. Statistics as Statistical Methods:
      1. Science of computing, averages. -Bowley
      2. Science of estimates & probabilities. -Boddington
      3. Science of judging collective, natural or social phenomenon from the results obtained from the analysis or enumeration or collection of estimates. -King
      4. Science dealing with collection, classification & tabulation of numerical facts. -Lovitt
      5. Science dealing with the collection, analysis, and interpretation of numerical data. -Croxton & Cowden

  3. Scope & Application of Statistics

    1. Scope:
      1. Fields such as Planning, Economy, Business, Industry, Mathematics, Biology, Astronomy, Medical Science, Psychology, Education, War, Politics, Environment.
    2. Applications:
      1. Planning: Example of vehicle increase in Bengaluru and Mumbai Metro Line 3.
      2. Economy: Consumer pricing index, economic growth in OECD, GDP estimates, global economic rankings.
      3. Business: Data usage, EV costs, 5G services premium in India.
      4. Industry: Quality control, construction of control charts.
      5. Mathematics: Contributions by Bernoulli, Pascal, Laplace, Gauss, R.A. Fisher.
      6. Biology: Biostatistics, application in health and genetics.
      7. Astronomy: Gaussian ‘Normal Law of Errors’ for studying stars & planets.
      8. Medical Science: TB burden, effects of bariatric surgery, mental well-being studies.
      9. Psychology: Measuring skills, attitudes, personality traits.
      10. Education: Salary data from top B-schools, school enrollment statistics.
      11. War: Decision Theory in military planning.
      12. Politics: Victory margins in elections, average candidates per constituency.
      13. Environment: Greenland’s ice thickness, rainfall statistics in Mumbai.

  4. Limitations & Distrust of Statistics

    1. Limitations:
      1. Not suited to the study of qualitative phenomena.
      2. Statistical laws are not exact.
      3. Does not study individuals.
      4. Liable to misuse.
    2. Distrust of Statistics:

      1. Figures may be inaccurate or incomplete.

      2. Figures may be manipulated to conceal the truth.

      3. Examples provided to highlight misleading statistical interpretations.

        “The number of accidents taking place in the middle of the road is much less than the number of accidents taking place on its side. Hence it is safer to walk in the middle of the road.”

        “The number of students taking up Mathematics Honors in a University has increased 5 times during the last 3 years. Thus, Mathematics is gaining popularity among university students.”

        “99% of the people who drink alcohol die before attaining the age of 100 years. Hence drinking is harmful for longevity of life.”