What are the different functions of statistics?

Answer 1

Functions of Statistics:

Statistics can be used for various purposes.

1) Simplification of mass data: Simplification of complex data and decision making for Managers has become easier by using various statistical concepts such as Sample, Population, Variance, Standard Deviation, etc. The Statistical concepts help in reducing the complexity of data and consequently in the understanding of the huge mass of data.

2) Easier Comparison: Statistical methods & Concepts makes collection of data easier which otherwise would have been difficult. The Various Statistical methods and concepts also helps in the Comparison of data thus collected from different sources. Grand totals, measures of central tendency, measures of dispersion, graphs and diagrams, coefficient of correlation all provide ample sources of comparison.

Visual representation of numerical data like Pie Chart makes Comparison of data much easier and aids in effective decision making.

3) Brings out trends and tendencies in the data: After data is collected, it is easy to analyse the trend and tendencies in the data by using various concepts of Statistics.

4) Brings out the hidden relations between Variables: Statistical analysis helps in drawing conclusions / Inferences on data. Such analysis also helps in bringing out the hidden relations between Variable.

5) Decision making power becomes easier: With the proper application of Statistics and Statistical software packages on the collected data, managers can take effective decisions, which results in increased profitability of business.

- Shashi