Definition, nature and Scope of Statistics. Functions & Limitation, Use of Statistics in business.

1. Introduction of Statistics
Bipul Kumar Sarker
Lecturer
BBA Professional
Habibullah Bahar University College
Chapter-01

2. Chapter Summery
Bipul Kumar Sarker, Lecturer (BBA Professional), HBUC
 Definition Of Statistics
 Nature and Scope Of Statistics
 Functions & Limitation Of Statistics
 Use of Statistics in business.

3. Definition of Statistics:
Bipul Kumar Sarker, Lecturer (BBA Professional), HBUC
Statistics is defined as the science of collection, organization, presentation,
analysis and interpretation of the numerical data.
A few definitions are analytically examined below:
According to R.A. Fisher:
The science of statistics is essentially a branch of applied mathematics and may be
regarded as mathematics applied to observational data.
According to A.L Bowley:
All statistics are numerical statements of facts in any department of enquiry in relation
to each other.

4. Objectives of Statistics/ Functions of Statistics:
Bipul Kumar Sarker, Lecturer (BBA Professional), HBUC
 To present facts in a definite form.
 To simplify complex data so as to make them
understandable.
 Statistics is a technique of marking comparison.
 Statistics enlarges individual experience.

5. Objectives of Statistics/ Functions of Statistics:
Bipul Kumar Sarker, Lecturer (BBA Professional), HBUC
 Statistics provides guidance in the formulation of
business policies.
 Statistics enables measurement of the magnitude of a
phenomenon.
 Statistics help in establishing cause and effect
relationships .

6. Importance and Scope of Statistics:
Bipul Kumar Sarker, Lecturer (BBA Professional), HBUC
 Statistics in state
 Statistics in economics
 Statistics in trades and commerce
 Statistics in medical science

7. Importance and Scope of Statistics:
Bipul Kumar Sarker, Lecturer (BBA Professional), HBUC
 Statistics in demography
 Statistics in weather forecasting
 Statistics in insurance companies
 Statistics in law-reformation and human rights
 Statistics in science

8. Limitations of Statistics:
Bipul Kumar Sarker, Lecturer (BBA Professional), HBUC
 Statistics does not deal with individual measurements
 Statistics deals only with quantitative characteristics
 Statistical result are true only on an average
 Statistics is only one of the methods of studying a
problem

9. Limitations of Statistics:
Bipul Kumar Sarker, Lecturer (BBA Professional), HBUC
 Statistics does not reveal the entire story
 Statistics data should be uniform and homogeneous
 Statistics is liable to be misused

10. Stages in statistical investigation:
Bipul Kumar Sarker, Lecturer (BBA Professional), HBUC
 Collection of data
 Organization of data
 Presentation of data
 Analysis of data
 Interpretation of data

11. Various Divisions of Statistics:
Bipul Kumar Sarker, Lecturer (BBA Professional), HBUC
 Statistical theory
Statistics is subdivided into 3 parts such as
 Statistical method
 Applied Statistics

12. Definition of business statistics:
Bipul Kumar Sarker, Lecturer (BBA Professional), HBUC
Business statistics is a science which use to make business
decisions under uncertainties based on some numerical figure
and measurable scale.

13. Importance of Statistics in Business :
Bipul Kumar Sarker, Lecturer (BBA Professional), HBUC
 Determining business spot
 Stocking commodity
 Estimating production rate and its state
 Financial analysis in business
 Measuring seasonal variation

14. Definitions and basic concepts:
Bipul Kumar Sarker, Lecturer (BBA Professional), HBUC
 Products marketing
 Estimating worker’s skill
 Business forecasting
 Solving business related problems
 Statistics in other business

15. Characteristics or Properties of Statistics:
Bipul Kumar Sarker, Lecturer (BBA Professional), HBUC
 Statistics are aggregate of interrelated information
 Statistics are numerically expressed
 Statistics are affected by various causes
 Statistics are the resultant of interrelated investigation

16. Characteristics or Properties of Statistics:
Bipul Kumar Sarker, Lecturer (BBA Professional), HBUC
 Statistics are comparable and homogenous
 Statistics are enumerated or estimated according to reasonable
standards of accuracy
 Statistics obtained in a well organized manner