Tag: definition, scope, importance and limitation of statistics

Questions Related to definition, scope, importance and limitation of statistics

Statistics is useful State Authorities as it helps in formulating____.

business economics and quantitative methods nature and scope of economics definition, scope, importance and limitation of statistics introduction - statistics for economics meaning and definition of statistics

  1. fiscal policies

  2. personal policies

  3. training policies

  4. all of the above

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Correct Option: A
Explanation:
The computation of statistics is immensely helpful in the identification of economic problems and the planning of policies to solve them as the government can now see how the economy is progressing and implement targeted policies to improve the situation. eg: if the unemployment level is higher than average the government can choose to have targeted employment schemes in that area of the country. 

In which of the following fields/ areas the use of statistics and statistical techniques can be better examined?

business economics and quantitative methods nature and scope of economics definition, scope, importance and limitation of statistics introduction - statistics for economics meaning and definition of statistics

  1. Measurement of national income and components.

  2. Business management.

  3. Biology

  4. All of the above

Show answer
Correct Option: D
Explanation:
Statistics helps in grasping the meaning of certain laws of behavior in social sciences and natural sciences and lends precision to scientific inquiry.  Analysts are able to collect and collate data in a precise manner to provide empirical evidence to a theory. Thus, it helps in condensing the mass of data into a few numerical measures and it enables an economist to present economic facts in a precise and definite form, or enables a scientist to draw conclusions from an experiment or allow an entrepreneur to construct a sales trendline to make the next business strategy. 

Which of the following can be treated as limitation of statistics?

business economics and quantitative methods nature and scope of economics definition, scope, importance and limitation of statistics introduction - statistics for economics meaning and definition of statistics

  1. Statistics deal with figures which are innocent by themselves and do not bear on their face the level of their quality and can be easily distorted, manipulated by dishonest politicians or unscrupulous people for their selfish motives.

  2. Statistics deals with groups and not with individuals.

  3. Statistics does not deals with qualitative data and descriptive facts.

  4. All of above

Show answer
Correct Option: D

______ consists of those methods which are used in establishing functional relationship between variables.It is attempted through comparison, between two sets of data at a point of time in cross-section data or between two points of time otherwise.

business economics and quantitative methods nature and scope of economics definition, scope, importance and limitation of statistics introduction - statistics for economics meaning and definition of statistics

  1. Inductive statistics

  2. Mathematical statistics

  3. Applied statistics

  4. Analytical statistics

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Correct Option: D

Important techniques from the part of analytical statistics includes____.

business economics and quantitative methods nature and scope of economics definition, scope, importance and limitation of statistics introduction - statistics for economics meaning and definition of statistics

  1. association of attributes

  2. correlation and regression.

  3. mathematics of finance

  4. A and B

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Correct Option: D

Which of the following can be treated as limitation of statistics?

business economics and quantitative methods nature and scope of economics definition, scope, importance and limitation of statistics introduction - statistics for economics meaning and definition of statistics

  1. Statistics does not deal with qualitative data and descriptive facts.

  2. Statistics deals with groups and not with individuals.

  3. Statistical laws are not exact.

  4. All of above

Show answer
Correct Option: D
Explanation:

Statistics are aggregate of facts, a single numerical fact can't be called statistics. Thus they only deal with groups and not individuals. Statistics only deals with quantitative data it does not deal well with qualitative data beauty, honesty, goodwil etc cant be measured. The laws of statistic are not exact and they might be used improperly to misinform. Political parties may create misleading statistics to gain favor with the people.

Which of the following sentence shows distrust about statistics?
1. An ounce of truth will produce tonnes of statistics.
2. It can prove anything.
3. It can prove nothing.
Select the correct answer from the options given below:

business economics and quantitative methods nature and scope of economics definition, scope, importance and limitation of statistics introduction - statistics for economics meaning and definition of statistics

  1. 1 only

  2. 1 and 2 only

  3. 2 and 3 only

  4. All 1 , 2 and 3

Show answer
Correct Option: D
Explanation:

All three statements are related to a major limitation of statistics which is "improper use of statistics". There is a vast scope for error in the data and it may be misused by people with agendas, these people may manipulate the data to gain favour or popularity. 

Which of the following can be treated as limitation of statistics?

business economics and quantitative methods nature and scope of economics definition, scope, importance and limitation of statistics introduction - statistics for economics meaning and definition of statistics

  1. Statistics helps in the formulation of various policies.

  2. Statistical laws are not exact.

  3. Statistics make forecasting easier.

  4. All of above

Show answer
Correct Option: B
Explanation:

A major limitation of statistics which is "improper use of statistics" which is a result of the laws of statistic not being an exact science. There is a vast scope for error in the data and it may be misused by people with agendas, these people may manipulate the data to gain favour or popularity. eg. politicians publishing misleading statistics on employment and inflation to remain in power.

____________________ formulated in mathematical theory of probability lays down that a moderately large number of items chosen at random from a very large group are almost sure on the average to have the characteristic of the large group"

business economics and quantitative methods nature and scope of economics definition, scope, importance and limitation of statistics introduction - statistics for economics meaning and definition of statistics

  1. Law of inertia of large numbers

  2. Law of statistical regularity

  3. Descriptive statistics

  4. Applied statistics

Show answer
Correct Option: B
Explanation:

The law of statistical regularity states that, as the sample size is increased, the data collected from this group will reflect the data of the population, i.e., irregularities in the data begin diminishing as the size of the sample increases, as the characteristics of the group is the characteristics of the data.

Which is not a stage of statistical inquiry?

business economics and quantitative methods nature and scope of economics definition, scope, importance and limitation of statistics introduction - statistics for economics meaning and definition of statistics

  1. Collection of data

  2. Organisation and presentation of numerical data

  3. Analysis of numerical data

  4. Preciseness and definiteness

Show answer
Correct Option: D
Explanation:

Option D is correct. Preciseness and definiteness do not feature in process of data collection and analysis, rather it is an innate quality that is likely to be ensured at each stage of the data collection and refinement process.