Question

quick summary of statstics of economics

Answer 1

What is Statistics?

Even for a layman this won’t be a tough question. If we were to ask any random person about statistics, even though he may not tell you an exact definition or meaning of it, but he will surely say that it is somewhat related to numbers or more precisely stock of quantitative information. Yes! This is what statistics in its crude or raw form is. But one needs to remember that statistics is not mere numbers or data. It is data which is relevant to a particular field of study and another important feature is that it is not concerned only with numbers. But it is a broad field of study in which the processes or activities related to collection of quantitative data are also included. Considering that Economics deals with large numbers, it is safe to presume the importance of statistics for economics.

Historically speaking, Statistics is something which has been changing forever. It is not at all static just like other sciences. Kings and ancient rulers used the following lines to refer to statistics:

“The science of kings, political and science of statecraft.”

Now when we come upon defining statistics, many notable economists and thinkers have defined it. For E.g. AI Bowley defined it as -: “The science of Averages” or “The science of Counting” Now both these definitions although put forward the basic essence of statistics, but statistics is not just limited to counting or finding average. There are many other various other components of statistics like coefficient or index numbers, etc. Various economists define statistics in singular and plural sense differently. Modern statistics comprises of both these terms. Singularly, statistics is a store of date and in plural sense, it includes activities involved in collection of numerical data like census or surveys.

Thus, at this standpoint we can provide a comprehensive definition of statistics comprising both its plural and singular meanings:

“Statistics are the numerical statement of facts capable of analysis and interpretation and the science of statistics is the study of the principles and the methods applied in collecting, presenting, analysis and interpreting the numerical data in any field of inquiry.”