Business Statistics

Statistics is not a science

Statistics is not a science
Statistics is not a science

Statistics is not a science, it is a scientific method. Discuss the statement.

  1. (a) “Statistics is not a Science, it is a scientific method.” – Discuss.

1. Meaning of Statistics

In the modern sense, statistics means a collection of various methods which are used for
– collecting numerical data,
– presenting them in a systematic form, and
– analysing them to draw conclusions.

Thus, statistics is mainly a tool or technique to study any quantitative problem.

2. Why statistics is not a separate science

Many authors say that statistics is not a full-fledged science like Physics, Chemistry or Economics. The reasons are:

  1. No specific subject-matter of its own
    • Every science has its own well-defined field.
    – Physics deals with matter and energy, statistics is not a science
    – Botany deals with plants,
    – Economics deals with wealth and human activities.
    • But statistics does not study any particular type of phenomenon.
    It can be applied to population, prices, wages, death rates, examination marks, production, accidents, etc.
    • Therefore, statistics is general in nature and does not have its own separate subject-matter.
  2. Absence of universal laws
    • Sciences formulate laws or principles which explain the behaviour of their subject.
    Example: law of gravitation in Physics, law of demand in Economics.
    • Statistics does not give such substantive laws about society or nature. Statistics is not a science
  3. It only tells how to collect, present and analyse numerical facts.
    • The laws which statistics provides (like law of averages, theory of probability) are mainly laws of method, not of any concrete phenomenon.
  4. Dependent character
    • Statistical conclusions always relate to some other science.
    For example, index numbers relate to Economics, mortality rates to Demography, crop-yield data to Agriculture. statistics is not a science • Without another subject providing data and giving meaning to the results, statistics by itself has no content.
    • Hence, statistics cannot exist in isolation; it is dependent on other sciences for material and interpretation.

3. Why statistics is called a scientific method

Although it is not an independent science, statistics is an important scientific method of study. This is because:

  1. Systematic and orderly procedure
    • Statistics prescribes definite steps for investigation:
    (i) collection of data,
    (ii) classification and tabulation,
    (iii) presentation through charts, diagrams, averages, etc.,
    (iv) analysis by measures of dispersion, correlation, regression, time-series, etc., and
    (v) interpretation and conclusion.
    • This step-by-step procedure resembles the method used in all sciences.
  2. Objectivity and precision
    • Scientific method requires objectivity. Statistics insists on numerical measurement and reduces personal bias. statistics is not a science • It gives precise numerical results such as mean, standard deviation, correlation coefficient, probability, level of significance, etc., which are capable of verification or testing.
  3. Use of reasoning and logic
    • Statistical techniques like sampling, hypothesis testing, analysis of variance, etc., are based on logical reasoning and mathematical principles.
    • Conclusions are not based on guesswork; they are drawn by applying definite rules, just like experiments in natural sciences.
  4. Helps in discovering relationships and generalisations
    • By comparing and analysing data, statistics helps to discover relationships between different factors—for example, between price and demand, income and consumption, rainfall and crop yield, etc.
    • It also helps in framing generalisations and predictions (forecasts), always with a known degree of reliability. statistics is not a science
  5. Applicable to all sciences
    • Whether the field is economics, business, psychology, medicine, biology or engineering, data have to be analysed statistically.
    • Because these methods are common to many sciences, statistics is rightly called a general scientific method.

4. Conclusion

From the above discussion we can say:

  • Statistics does not possess a separate, concrete field of study or its own independent laws like other sciences; therefore, it is not a distinct science in the ordinary sense.
  • However, it provides a set of scientific and objective methods for handling numerical data in any field of knowledge. Statistics is not a science

Hence, the statement “Statistics is not a science, it is a scientific method” is justified. Statistics should be regarded mainly as a scientific technique of investigation which other sciences use to study their own subject-matter more accurately. If you want to know the Syllabus of Business Statistics you must visit the official website of Gndu.

👉 Note:- Important questions of Business Statistics

  1. Missing Frequency
  2. Three Missing Frequency
  3. Functions of Statistics

Three missing Frequency

Three Missing Frequency
Three Missing Frequency,

Let the missing frequencies be:
30–40 = a
40–50 = b
50–60 = c

Given:
Total frequency = 150
Median = 48.25
Mode = 44

Step 1: Using Total Frequency

3 + 7 + a + b + c + 20 + 16 + 4 = 150
50 + a + b + c = 150
⇒ a + b + c = 100 …(1)

Step 2: Using Median

Median class = 40–50
l = 40, h = 10
c.f. before median class = 3 + 7 + a = 10 + a
Median formula:
48.25 = 40 + (75 – (10 + a)) / b × 10

Simplifying:
65 – a = 0.825b
⇒ 2600 – 40a = 33b …(2)

Step 3: Using Mode

Modal class = 40–50
Mode formula:
44 = 40 + (b – a) / (2b – a – c) × 10

Simplifying:
b + 2c = 3a
⇒ 5a + b = 200 …(3)

Step 4: Solving Equations

From (3):
b = 200 – 5a

Substitute in (1):
c = 100 – a – b

Substitute values in (2):
2600 – 40a = 33(200 – 5a)
2600 – 40a = 6600 – 165a
125a = 4000
⇒ a = 32

Now,
b = 200 – 5a = 200 – 160 = 40
c = 100 – 32 – 40 = 28

Final Missing Frequencies

30–40 = 32
40–50 = 40
50–60 = 28

Class Interval : Frequency

10–20 : 3

20–30 : 7

30–40 : 32

40–50 : 40

50–60 : 28

60–70 : 20

70–80 : 16

80–90 : 4

Total : 150

If you want to know the Syllabus of Business Statistics, you must visit the official website Gndu.

👉 Note Important questions of Business Statistics.

  1. Functions of Statistics
  2. Missing Frequency

Three Missing Frequency

Three Missing Frequency

Functions of Statistics

Functions of statistics
Functions of statistics

1(a) Define Statistics. Discuss the functions of Statistics.

Meaning / Definition of Statistics

Statistics is a branch of study that deals with the collection, classification, presentation, analysis and interpretation of numerical data.
In simple words, statistics helps in converting raw facts into meaningful information for decision-making.

Definition :
“Statistics is the science which deals with the collection, presentation, analysis and interpretation of numerical data.”

Functions of Statistics

1. Collection of Data

Statistics helps in collecting numerical facts through surveys, schedules, questionnaires, and observation.

2. Classification and Organization of Data

After collection, statistics helps in arranging data into classes and groups so that it becomes easy to understand.

3. Presentation of Data

Statistics provides methods like tables, graphs, charts, diagrams, frequency distribution, etc., to present data clearly.

4. Analysis of Data

Statistical tools such as averages, dispersion, correlation, regression, index numbers, etc., help in analyzing the data to draw meaningful conclusions.

5. Interpretation of Data

Statistics helps in interpreting results and making decisions or predictions based on analyzed data. Functions of statistics

6. Forecasting

Statistical techniques help in forecasting future trends (like demand, production, population, sales).

7. Formulation of Policies

Governments, businesses, and institutions use statistical information to make policies and plans. Functions of statistics

8. Comparison

Statistics helps in comparing different sets of data—between groups, years, regions, or sectors.

9. Testing Hypotheses

Statistics helps in testing assumptions and theories with the help of probability and sampling methods.

10. Decision Making

Managers and policy-makers use statistical results to make rational and scientific decisions. Functions of statistics

Conclusion

In conclusion, statistics plays an essential role in simplifying complex numerical facts. It helps in the systematic collection, classification, presentation, analysis, and interpretation of data. Through its various functions, statistics provides a scientific base for understanding information, comparing facts, forecasting trends, and making reliable decisions in business, economics, government, and daily life. Thus, statistics has become an important tool for planning and decision-making in every field.

If you would like to know the Syllabus of Business Statistics you must visit the official website Gndu.

👉 Important Questions of Business Statistics

  1. Missing Frequency

Missing frequency
Missing frequency

Q.1 (b) Solution

Given: Median = 86

Class

Frequency

45–50

2

50–60

1

60–70

6

70–80

6

80–90

x

90–100

12

100–110

5

Step 1: Total Frequency

Total frequency
N = 2 + 1 + 6 + 6 + x + 12 + 5
N = 32 + x

N/2 = (32 + x) / 2

Step 2: Cumulative Frequency

C.F. up to:

  • 45–50 = 2
  • 50–60 = 3
  • 60–70 = 9
  • 70–80 = 15
  • 80–90 = 15 + x ← Median class
  • 90–100 = 27 + x
  • 100–110 = 32 + x

Median class = 80–90 (because median value 86 lies here)

Step 3: Median Formula

Median = l + [(N/2 – c.f.) / f] × h

Here,
l = 80
c.f. = 15
f = x
h = 10

So,
86 = 80 + [( (32 + x)/2 – 15 ) / x ] × 10

Step 4: Solving

Subtract 80 from both sides:

6 = [ ( (32 + x)/2 – 15 ) / x ] × 10

Divide both sides by 10:

0.6 = [ (32 + x)/2 – 15 ] / x

Simplify numerator:

(32 + x)/2 – 15
= (32 + x – 30) / 2
= (x + 2) / 2

So,
0.6 = (x + 2) / (2x)

Cross-multiply:

0.6 × 2x = x + 2
1.2x = x + 2
1.2x – x = 2
0.2x = 2
x = 2 / 0.2
x = 10

Final Answer

Hence, the missing frequency = 10

Missing frequency

If you would like to find the Syllabus of Business Statistics, you must visit on the official website Gndu.