Meaning and Definition of Statistics

We frequently use statistics in economics. Today, statistics is used both in singular and plural forms. Various statisticians have defined statistics in both these forms.

When used in the singular, statistics refers to the science of counting and the science of averages. A comprehensive and broad definition of statistics in the singular form is given by Croxton and Cowden. 

According to Croxton and Cowden, "Statistics may be defined as the collection, presentation, analysis, and interpretation of numerical data."

Thus, statistics in the singular refers to statistical methods, the use of which is considered important in economics.  

When used in the plural, statistics refers to numerical groups of data collected in a well-organized manner based on certain qualities or characteristics, in accordance with pre-determined objectives. Statistician Horace Secrist's definition of statistics in the plural is considered more comprehensive and appropriate.

 According to Horace Secrist, "Statistics may be defined as the aggregates of facts affected to a marked extent by a multiplicity of causes, numerically expressed, enumerated or estimated according to reasonable standards of accuracy, collected in a systematic manner for a pre-determined purpose, and placed in relation to each other." 

Such statistics are repeatedly used in economics.

Statistics and statistical methods are considered important for the study of economics. Statistical methods refer to the process of collecting data related to the subject of research, classifying it, presenting it through tables, charts, and diagrams, analyzing the data, and reaching conclusions.

Scope of Statistics

In the modern era, the scope of statistics has been expanding. Statistics encompasses all quantitative analyses. In all disciplines of human knowledge where numbers are heavily sought and valued, statistics has been an integral tool. Statistical methods provide important ways to measure numerical changes in complex groups and evaluate aggregated phenomena. 

The scope of statistics includes economics, policymaking and governance, planning and implementation, industry, trade, commerce, physical and chemical sciences, and various other fields of knowledge. 

The scope of statistics also covers its nature, subject matter, and limitations.

(i) Nature of Statistics

The nature of statistics is related to the question of whether statistics is an art or a science. Science is considered a systematic body of knowledge. For statistics to be a science, certain characteristics must be present. It must be a systematic body of knowledge. 

Its rules and applications must be universal. It must establish a relationship between cause and effect, help in forecasting or prediction. Its methods must be systematic and regular. Therefore, statistics is a science that helps in collecting, classifying, tabulating, and presenting data to make it more meaningful and applicable.

Croxton and Cowden have stated that statistics is not a science but a scientific method. However, some other statisticians have considered statistics not as a body of knowledge but as a set of methods for obtaining knowledge.

Similarly, art is the practical application of scientific principles. If science is knowledge-centered, art is behavior-centered. Statistics is considered an art that uses the science of scientific methods. Statistics not only studies various methods of studying a problem but also studies how these methods can be applied in different situations. 

When statistics is considered an art, it formulates practical rules of behavior. Statisticians need sufficient skills and experience to solve real-life problems, which is why statistics is considered an art. It helps in better analysis of determining factors and assists in making effective decisions.

Many statisticians consider statistics to be both a science and an art. Statistics is a science because it includes methods of data collection, presentation, and analysis. The application of these methods presents statistics as an art. 

In the words of Professor Tippett, statistics is both a science and an art. 

It is a science because its methods are fundamentally systematic and have general application. It is an art because its successful application depends to a significant extent on the statistician's skill and specific experience, as well as their knowledge of the field of application.

(ii) Subject Matter of Statistics

The subject matter of statistics can be discussed under two headings: statistical methods and applied statistics.