Question

Which of the following can be treated as important function of statistics?

• A. Statistics helps in the formulation of various policies.
• B. Statistics makes forecasting easier.
• C. Statistics helps to formulate hypothesis and test its validity.
• D. All of the above

Answer 1

Answer: (D)

All of the above

Statistic usually relies on empirical evidence of the past in order to formulate a hypothesis and the possible long run path. Since the hypothesis is based on real data, it makes forecasting easier, it can help verify hypothesis which in turn can then help form targeted policies to aid in economic growth.