# Statistical Method

Systematic presentation we reduce the meaningless mass of statistical data through the tables, charts etc.

• Sometimes we need to compare one table with another table and one frequency distribution with another frequency distribution.

• At that time we require tools or methods to make such comparisons.

• One set of statistical tool found in ratio, rates and percentages.

• Another set of statistical tool is found in the averages or measures of central tendency.

## Ratio

• Comparing two numerical values by division is the ratio method of comparison.

• Ratio is the relationship between two quantities which called terms.

• It is necessary to determine (a) What is compared (First term) and With which it is to be compared (Second term).

• Calculated by dividing the first term by the second term.

• Expressed in words, symbol and fraction.

• Ratio will be reverse when first and second terms are interchanged.

Ratio

For example:

### Forms of Expression of Ratio:

• In words: The ratio of Rs. 6 to Rs. 2

• In symbol: Rs.6: Rs.2

• In fraction:

### Examples of Certain Ratios Used in Economics:

 Ratio of national income to population Input-output Ratio Ratio of population to land areas Ratio of consumption to Income

## Rates

In economic rates like rate of economic growth, rate of growth of population, birth rate, death rate, agricultural rate are calculated.

For example: Rate of yield per hectare of a crop.

Rate of yield (in kg.) per hectare of crop

### Rates vs. Ratio

• Rate and ratio calculation method are generally same.

• Rate is the ratio between two magnitudes shown over a period of time.

• Rate can be expressed besides per unit, per 100, 1000, lakh etc and even higher.

### Need for Arbitrary Base in Rate

• Value of ratio per unit sometimes is so small.

• Small base fails to convey importance of the rate or ratio.

• Need to raise the base.

• Arbitrary higher base for calculation of rate is chosen when:

• Value of ratio is very small

• Need to avoid fractions in comparisons

## Percentage

• Percentage is type of rate or ratio with base 100.

• Every ratio per unit when multiply by 100 is converted into percentage.

Percentage

## Mean

### Measures of Central Tendency

• Clustering of items values in the central part of the distribution is known as central tendency.

• Measure of central tendency means a value where the concentration of the items or values is found to be greatest.

• Average also called measures of central tendency.

• It is a value which is typical or representative of a set of data.

• Average can be obtained by using 5 different measures of central tendency: 5 Different Measures of Central Tendency 5 different measures of central tendency

Average will help to compare its various sections according to their performance.

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