1.1 Definition and Meaning of Statistics

Statistics is defined as the science of collecting, organising, presenting, analysing, and interpreting numerical data to assist in making more effective decisions.

Statistics has two meanings: (i) in the plural sense it refers to a collection of numerical facts, and (ii) in the singular sense it refers to the discipline or subject of study.

1.2 Functions / Importance of Statistics

• Presents facts in a definite and precise form.
• Simplifies complex data using averages, percentages, and other measures.
• Facilitates comparison between different sets of data.
• Helps in prediction and forecasting future trends.
• Guides policy formulation and decision making.
• Measures the degree of relationship between variables (correlation).

1.3 Uses of Statistics

• Business & Trade: Demand forecasting, quality control, market research.
• Economics: National income, price indices, poverty analysis.
• Government: Census, planning, public administration.
• Science & Research: Experimental design, hypothesis testing.
• Medicine: Clinical trials, epidemiology.

1.4 Limitations of Statistics

• Statistics deals only with quantitative data; qualitative aspects are ignored.
• Statistical results are true only on average; individual cases may differ.
• Statistics can be misused and manipulated to draw false conclusions.