Statistics: Meaning and scope

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Statistics data is needed to approve or disapprove any economic theory. Data require revealing the structure of economy and helpful for planning. In plural sense of the term data refers to the quantitative information or statistical data and singular sense the term data refers to the methods used in arriving at statistical data.

Need for Statistical data

Various need for Statistical data

Need for Statistical Data

Various need for Statistical data

To approve and disapprove an economic theory

  • Economic theory developed on the basis of what we observed in real life.

  • Then, it’s approved or disapproved by the statistical data relative to observation.

  • For ex. Observed that consumers demand more at lower prices.

To reveal structure of an economy

  • Structure of an economy with help of data only.

  • It involves knowledge about population, natural resources, employment, national income, production, exports, imports etc.

  • Statistical knowledge helps to know the extent of defects in the structure of economy.

Needed for planning

  • No economic planning possible without the aid statistical data.

  • Extent of population revealed by data on population and available resources.

To assess the success of programmes and policies of the government

  • It’s requiring to know whether implementation has been proper or not.

  • Therefore, statistical data are requiring.

  • Some of this area in economics requires accurate and proper statistical data and data collection method.

Scope of Statistics

The world statistics used in two senses:

  • Plural Sense: Quantitative information simply statistical data

  • Singular Sense: Method or methods used in arriving at the quantitative information or dealing with it.

For example:

Growth of population in India
Growth of population in India as per year

Growth of Population in India

Year

Population (in Crores)

951

36.1

1961

43.9

191

54.8

1981

68.5

1991

84.6

  • Here, numerical (quantitative) data in the plural sense in this case.

  • Population of India was estimated through the census method.