Table of Contents
Functions of Statistics
Statistics has been playing a vital role in almost every area in the universe. Some of important functions are listed below:
i. To present facts from numerical figures in a definite form:
Statistics shows every fact in figure and in numbers. Naturally conclusions based on numerical facts are definite. Just for example, if somebody says per capita income of Nepal in the year 2070 B.S. is more than that of the year 2060 B.S., it does not give definite conclusion. If the exact increased figure of per capita income is given, then the information will become definite.
ii. To condense the widely and voluminous data:
It is quite inconvenient to say something about the huge mass of data. Statistics helps to condense the huge and voluminous data by using appropriate statistical measures. Just for example, if we collect the ages of 100 students, then that can be condensed by calculating the average age of students. Then a single average value can represent the age of whole 100 students on a average.
iii. To help classification of data:
When data are collected, they are in the raw form and not comprehensive initially. To make these data statistical principles. Hence statistics helps in classifying data according to the nature of data.
iv. To provide methods for making comparison:
Statistics contributes different statistical procedure and methods for comparing the relevant values with each other. Just for example, height (in cm.) and weight (in lbs.) of children can be compared by converting them into relative statistical measures.
v. To help in formulating policies:
In order to formulate plan and implementing policies, one should have based on statistical conclusion drawn the data analysis. Policy making in different areas such as wage and income, tax and export, development, and expenditure etc. are based on the statistical inference drawn from these areas.
vi. To determine relationship between different phenomena:
Statistical techniques such as correlation and regression etc. are useful to measure the relationship between the variables. One can easily observe the correlation between income and expenditure of family, ages and playing habits of students etc.
vii. To help in predicting future trends:
On the basis of past or present estimate values of variables, other values of variables for future time can be predicted. The use of some statistical techniques like time series analysis, regression analysis etc. helps for forecasting future trends.
viii. To formulate and test the hypothesis:
Statistics is the science which is most useful and applicable to formulate and testing of hypothesis. Some hypothesis is generally set up and can be tested by calculating statistical measures from the sample data.
ix. To have an idea about the occurrence or non occurrence of certain events:
One of the major areas of statistics is probability theory. With the help of probability laws and rules, one can find the occurrence or non occurrence of events. Just for example, the probability of producing defective items in an industrial products, the probability of male birth or female birth etc. can be computed using statistics.
x. To draw valid inferences or conclusions:
One of the indispensable science for valid conclusions about any phenomena based on data is the statistics. Generally, it is very hard to enumerate each and every unit of universe because of different reasons. Therefore, certain units are selected from the universe and they are studied. Applying different statistical tools on these sample data, statisticians can draw inferences about the whole universe. Thus, statistics helps to draw valid conclusions.