Introduction — Economics STD 11 Commerce — Question

According to Horace Secrist, “By Statistics we mean aggregate of facts affected to a marked extent by multiplicity of causes numerically expressed, enumerated or estimated according to a reasonable standard of accuracy, collected in a systematic manner for a pre-determined purpose and placed in relation to each other."

1. Statistics is aggregate of facts: A single figure is not called statistics. Aggregate of facts is called statistics. It is for a simple reason that a single figure can neither be compared, nor presented nor analyzed. If Ram says that his height is 6 feet, it is not statistics but if he says average height of his class is 6 feet, it is a statistical statement because it is backed by aggregate of facts.
2. Statistics are affected to a marked extent by multiplicity of causes: There are many factors which work behind statistical forces operating together. For example, statistics of employment in an economy are affected by demand and supply of labour force, working conditions, production methods used etc. In the above example, if average height of a class is 6 feet, there are many factors responsible for it- geographical, genetic, gender etc.
3. Statistics are numerically expressed: All Statistics are numerically expressed. If a fact is not numerically expressed, it cannot be called statistics. Statements like good, bad, very large, very small, inadequate etc. cannot be called statistics. For example, following statements are not statistics.

My height has increased.

India's population has increased.

Crime rate is increasing in India etc.

Following are statistical statements.

My height which had increased by 2 inches last year has increased by 5 inches this year.

India's population is increasing @ 2% p.a. which was 1.2% p.a.

Crime rate in India has increased by 200% during 1999-2010.

4. Statistics are enumerated or estimated according to a reasonable standard of accuracy: Statistical data must be reasonably accurate because they serve as the basis of decision making and conclusions drawn. If data are actually collected they need to be accurate if they are estimated (when actual data are not available) they must be accurate to a reasonable standard.
5. Statistics are collected in a systematic manner: Only systematically collected statistics are reliable. Those statistics which are not systematically collected are inaccurate and unreliable. Such statistics, if used, will lead to misleading conclusions.
6. Statistics are collected for a predetermined purpose: Statistics are collected for a pre-determined purpose. Purpose cannot be determined after collection of data. Which sources should be used for collecting data, which method to use, what should be the sample size all depends on purpose of statistics. If it is not collected for a predetermined purpose, it will be purposeless i.e. useless.
7. Statistics should be placed in relation to each other: Since statistics are collected for comparison, we need to place various items in relation to each other. Data must be uniform and homogeneous to be able to put in relation to each other. For example, if we are comparing price indices, base year should be same. If it is not so, they are not comparable. Therefore, we can say that all numerical facts are not statistics but all statistics are numerical facts.