Question

Write answer in one or two paragraphs

State the importance of statistics.

Answer 1

The following points highlight the importance of statistics in economics.
i. Analysing economic problems: The magnitude of economic problems, such as unemployment, poverty, illiteracy and over-population can be judged with the help of statistical data.
ii. Formulating economic plans and policies- Statistical tools play a crucial role in formation of economic plans and policies for the welfare of society.
iii. Assessing the performance and welfare of an economy: Statistics provides the basis for analysing the performance of an economy and comparing it with other economies.
iv. Base for economic theories and models: Statistical principles form an important base for various economic laws. No economic theory or model can be constructed without relevant statistical experiments.