Importance of Statistics
Importance of statistics across four major domains \u2014 Government, Economics, Economic Planning, and Business \u2014 with real-world applications and examples.
Importance of Statistics to the Government
Government & Statistics
- •Ancient rulers used statistics to assess military and economic strength.
- •In the present scenario, Government collects the largest amount of statistics for various purposes.
- •The role of government has increased, requiring much greater numerical information to fulfil welfare objectives and efficient administration.
Popular methods: Time-series analysis, index numbers, forecasting, demand analysis \u2014 extensively used in formulating economic policies.
- •Example: Statistical investigations provide data about paying capacity of the people, which helps the government decide rates of direct and indirect taxes.
- •In a democratic country like India, political groups are guided by statistical analysis regarding their popularity among the masses.
“It is impossible to think about the functioning of the modern government in the absence of statistics.”
Importance of Statistics in Economics
Statistics is indispensable for understanding economic problems. Every branch of economics takes support from statistics to prove various economic theories. Statistics provides important guidelines for formulating economic policies.
6 Key Uses of Statistics in Economics
Statistics in Economic Activities
Importance of Statistics in Economic Planning
Statistics in Economic Planning
“It is rather impossible to think of a situation where economic planning can be done without the use of statistical techniques.”