Q.Describe the scope of statistics and explain any five functions it performs.

This question has two parts — the fields statistics is applied in (scope) and the tasks it performs (functions).

Scope of statistics. Statistics is applied wherever numerical data must be collected and decisions taken. Its main fields are:

• Business and commerce — sales forecasting, market research, quality control, inventory and production planning, cost and profit analysis.
• Economics — national income, price levels and inflation (index numbers), demand and supply, distribution of income and wealth.
• Government and administration — census, planning, budgeting, taxation, policy-making.
• Banking, insurance and finance — risk assessment, premium fixing, analysis of deposits and credit.
• Natural and social sciences — physics, biology, agriculture, medicine, psychology, sociology.

Five functions of statistics.

1. Presents facts in numerical form — vague statements ('prices rose sharply') become precise ('prices rose by 12%').
2. Simplifies and condenses data — hundreds of figures are reduced to a few summary measures (averages, percentages) the mind can grasp.
3. Facilitates comparison — averages, ratios, percentages and index numbers let one period, place or group be compared with another.
4. Studies relationships between phenomena — correlation and regression measure how two variables (e.g. advertising and sales) move together. …

Students often blur 'scope' (the fields where statistics is used) with 'functions' (the tasks it performs) — the question asks for …