STATICS FOR MANAGEMENT

Q.1Elucidate the functions of statistics.?

Ans.
Function of Statistics
Statistics is used for various purposes. It is used to simplify mass data and to make
comparisons easier. It is also used to bring out trends and tendencies in the data
as well as the hidden relations between variables. All this helps to make decision making
much easier. Let us look at each function of Statistics in detail.

1. Statistics simplifies mass data

The use of statistical concepts helps in simplification of complex data. Using statistical
concepts, the managers can make decisions more easily. The statistical methods help in
reducing the complexity of the data and consequently in the understanding of any huge
mass of data.

2. Statistics makes comparison easier

Without using statistical methods and concepts, collection of data and comparison cannot
be done easily. Statistics helps us to compare data collected from different sources. Grand
totals, measures of central tendency, measures of dispersion, graphs and diagrams,
coefficient of correlation all provide ample scopes for comparison.

Hence, visual representation of numerical data helps you to compare the data with less
effort and can make effective decisions. The graphical curve represented in figure 1.7 and
figure 1.8 shows the profits of CBA Company and ZYX Company respectively, for ten
years from 1998 to 2008. The profits are plotted on the Y-Axis and the timeline in years
on X-Axis. From the graphs, we can compare the profits of two companies and derive to
a conclusion that profits of CBA Company in the year 2008 are higher than that of ZYX
Company. The graphical curve in case of figure 1.7 shows that the profits for CBA
Company are increasing, whereas the profits curve in figure 1.8 is constant for ZYX
Company from middle of the decade (1998-2008).

3. Statistics brings out trends and tendencies in the data:

After data is collected, it is easy to analyse the trend and tendencies in the data by using
the various concepts of Statistics.

4. Statistics brings out the hidden relations between variables Statistical analysis helps in
drawing inferences on data. Statistical analysis brings out the hidden relations between
variables
5. Decision making power becomes easier

With the proper application of Statistics and statistical software packages on the collected
data, managers can take effective decisions, which can increase the profits in a business.

Q2. What are the methods of statistical survey? Explain briefly. ?

Ans :-
A Statistical survey is a scientific process of collection and analysis of numerical data.
Statistical surveys are used to collect numerical information about units in a population.
Surveys involve asking questions to individuals. Surveys of human populations are
common in government, health, social science and marketing sectors.

2.2 Stages of Statistical Survey

Statistical surveys are categorized into two stages – planning and execution.

STATISTICAL SURVEY

Primary Execution

Planning & Statistical Survey

The relevancy and accuracy of data obtained in a survey depends upon the care exercised
in planning. A properly planned investigation can lead to best result with least cost and
time.

Methods of statistical survey:

IMAGE – 2

Personal mall intercept survey

• shoppers at malls are intercepted - they are either interviewed on the spot, taken to
a room and interviewed, or taken to a room and given a self-administered
questionnaire

• socially acceptable - people feel that a mall is a more appropriate place to do

research than their home
 • potential for interviewer bias
• fast
• easy to manipulate by completing multiple times to skew results

Q3.Tabulate the following data:

Age: 20-40; 40-60;60-above
Departments: English, Hindi, Political science, History, sociology
Degree level: Graduates, Post graduates; PhD,
Total students in age group and in degree level.
Ans.

Department Age TOTAL

20-40 40-60 60 ABOVE
G P.G PH.D G P.G PH.D G P.G PH.D

English
Hindi
Political

Science
History
Sociology
Total

Q4. The data given below is the distribution of employees of a business according to
their efficiency. Find the mean deviation and coefficient of mean deviation from
Mean and Median: