Q.Explain the importance of Statistics.

Statistics is valuable because it expresses facts precisely in figures, simplifies and condenses large data, enables comparison and the study of relationships, helps forecasting and planning, and supports decision-making by governments, businesses and economists.

Meaning

Statistics, in the plural sense, means numerical data, and in the singular sense it is the science of collecting, classifying, presenting, analysing and interpreting numerical facts. Its importance extends to economics, business, government and research.

Importance / Functions of Statistics

1. Presents facts in a definite form — statistics expresses facts precisely in numbers, which are more convincing and exact than vague statements.
2. Simplifies complex data — large and complex masses of data are condensed into averages, percentages, totals and diagrams that are easy to understand.
3. Helps in comparison — figures for different years, places or groups can be compared with the help of averages, ratios and index numbers.
4. Studies relationships between variables — tools like correlation and regression reveal the relationship between variables such as price and demand.
5. Helps in forecasting — on the basis of past data, statistics helps predict future trends in production, prices, population and demand.
6. Aids policy formation and planning — governments use statistics of income, prices, employment and population to frame economic policies and plans. …