Statistics helps the economics in various ways. Cite three
instances for it.
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Answer:
Statistics is a data interpretation tool used for collecting, classifying and analyzing data. ... Broadly speaking, statistics helps in : analysing various economic problems such as inflation, unemployment etc by looking at numbers, trends over the years.
Statistics is a data interpretation tool used for collecting, classifying and analyzing data. It is an indispensable tool for an economist to understand various business and economic problems and formulate policies to tackle with them.
In economics, we analyze behavior of different groups such as consumers, producers, government and come out with intuitions, models, and observations. However, it is the data that enables an economist to claim such observations as exact and precise.
Broadly speaking, statistics helps in :
analysing various economic problems such as inflation, unemployment etc by looking at numbers, trends over the years.
summarising mass data like income, consumption etc into measures like per capita income and per capita consumptions which are more explanatory of how an economy is performing.
assessing relationship between different economic variables such as population and poverty, price and demand.
evaluating the impact of various government campaigns like family planning programme, various poverty alleviation programmes etc.
predicting change that might happen in a factor due to changing some other factor. For instance, predicting how inflation would be affected if money supply is increased in the economy.
decision making at micro level i.e firms, households etc with regard to production, consumption etc.