Question

Q7. Which of the following statement highlights the importance of statistics in economics:
a. It is the study of numerical facts only. b. Statistics are collected with some predetermined objective.
c. The results in statistics are true only on an average.
d. It gives the quantitative expression of economic problem.​

Answer 1

Answer:

D

Explanation:

In Economics, we work with hypothesis. Let's say India is facing a liquidity crisis and the government of India wants to buy bonds for liquid cash which would increase money supply.

Now if the hypothesis will work or not, that is, if buying bonds will work in reality can be reliably tested using statistics and econometrics, which is the advanced branches of statistics used for economic applications.