Question

Write notes on

Scope of statistics.

Answer 1

Statistical tools and methods have wide applicability across various fields. The following are the broad areas where statistics is applied.

1. Statistics and business: Business firms use statistics to study market fluctuations and various other relationships such as those between the price of a product and the demand for the same. Statistical tools help in managing a business on various grounds such as production, quality and cost control.
2. Statistics and government: Various policies and plans of the government are formed on the basis of statistical facts and figures. Plans and policies regarding matters such as poverty, unemployment and population cannot be formed without the availability of suitable statistical data.
3. Statistics and natural sciences: Statistical techniques play a vital role in the study of natural sciences such as medicine, biology and botany. For example, statistical tools are used to carry out a research on the success or failure of a drug.
4. Statistics and research: Statistical data is a significant input to conduct various researches. Researchers undertake researches for studying different relationships between different variables; for example, price and demand, poverty and health, etc.
5. Statistics and other fields: Statistics is also applied in other fields such as banking, insurance and trade. For example, the interest rate to be charged on loans is decided on the basis of a survey on the probability of repayment of loans.