INTRODUCTION TO STATISTICS

Definitions of Economics
Adam Smiths Definition-Wealth
Definition

Adam Smith (1723-90) defined Economics as follows:

Economics is the science of wealth. He is the author of the famous book
wealth of Nations in 1976.He is known as the Father of Economics ,he was the
first person who put all the economic ideas in a systematic way. It is only after
Adam Smith, we study economics as a systematic science
Alfred Marshalls Definition Welfare Definition

Alfred Marshall (1842-1924) wrote a book Principles of Economics in 1990.In

it; he defined economics as a study of mankind in the ordinary business of
life. An altered form of the definition is Economics is a study of mans
actions in the ordinary business of life.

Lionel Robbins Definition Scarcity Definition

Economics is the science which studies human behavior as a relationship

between ends and scarce means which have alternative uses
Robbins has given the above definition in his book An Essay on the Nature and
significance of Economic Science.
Samuelsons Definition-Modern Definition of Economics

Economics is a social science concerned chiefly with the way society chooses to
employ its resources, which have alternative uses, to produce goods and services for
present and future consumption

Main Divisions and Basic concepts of Economics

There are four main divisions of economics. They are Consumption,
Production, Exchange and Distribution. In Modern times, economists add one
more division and that is Public finance.
Consumption
The economic activity by which individuals try to satisfy their needs and wants
are called as consumption. The objectives of consumption are to satisfy needs
and want whereas the consumer seeks satisfaction or utility.
Production
The process of changing, by adding value, raw materials into finished goods is
called production, in other words, production is a value adding process to the
raw materials in order to make final products.i.e the process of employing
scare resources to satisfy human needs is known as production.
Exchange
Goods may be exchanged for goods or for money. If goods are exchanged for
goods, we call it barter. Modern economy is a money economy .As goods are
exchanged for money.
Distribution
Wealth is produced by the combination of Land, Labour, Capital and
organization, and it is distributed in the form of rent, wages, interest and
profits.
Public Finance
Public Finance deals with the economics of government .it studies mainly
about income and expenditure of government.

STATISTICS
In plural sense, statistics refers to quantative
data, Statistics is the science of countingDr.A.L.Bowley
Statistics is the collection, presentation,
analysis and interpretation of numerical
data-Croxton and Cowden

CHARACTERISTICS OF
STATISTICS

Statistics are aggregates of facts

Statistics are numerically expressed
Statistics are affected to a marked extent by
multiplicity of causes
Reasonable standards of accuracy in
enumeration, estimation or collection
Statistics are collected in a systematic
manner
Statistics are collected for predetermined
purpose

CHARACTERISTICS OF STATISTIC
IN SINGULAR SENSE

Collection of data
Classification of data
Presentation of data
Analysis of data
Interpretation of data

SUBJECT MATTER OF STATISTICS

Statistical method
Applied statistics
Descriptive
Scientific

SCIENCE \ ART

It is a systemized body of knowledge

Its rules and applications are universal.
It establishes relationship between cause and
effect
It helps in effective forecasting
Its method are in order and serialwise
Large degree of skills and experience
Effective decision making

SCOPE AND IMPORTANCE OF

STATISTICS

Useful to bankers
Useful to insurance company
Useful to railways and other transport
agencies
Useful to business
Useful to economists
Useful to planning

FUNCTIONS

Presentation of facts
Simplification of complexities
Facilitating comparisons
Facilitating the formulation of policies
Widening of human knowledge
Useful in testing the laws of other sciences
Facilitates the forecasting
Establishment of correlation between two
facts

LIMITATION

Statistics does not study individuals

Statistics deals with quantitative facts
Statistics is true only to its averages
Statistics may lead to fallacious conclusion
Only experts can make use of statistics
Homogeneity and uniformity is must

Any questions