1. Mention the characteristics of Statistics. Explain any two applications of Statistics.

Statistics is the study of the collection, organization, analysis, interpretation and presentation of data. It deals with all aspects of this, including the planning of data collection in terms of the design of surveys and experiments. Characteristics of Statistics Aggregate of Facts Statistics does not refer to a single figure but it refers to a series of figures. A single weigh of 50 kg is not statistics but a series relating to the weight of a group of persons is called statistics. It means, all those figures which relate to the totality of facts are called statistics. Such figures should also be comparable. Affected by Multiplicity of Causes Statistics are not affected by one factor only, rather they are affected by a large number of factors. It is because statistics are commonly used in social sciences. It is not an easy job to study the effects of any one factor on a phenomenon and effects of different sets of factors separately. In nutshell, we can say that statistics are affected considerably by multiply causes e.g. prices are affected by conditions of demand, supply, money supply, imports, exports and various other factors. Numerically expressed Another characteristic of statistics is that qualitative expressions like young, old, good, bad etc. are not statistics. To all statistics a numerical value must be attached. For example, the statements like "There are 932 females per 1,000 statements must contain figures so that they are called numerical statements of facts. Furthermore, such numerical expressions are precise, meaningful and convenient form of communication. Enumerated or Estimated according to Reasonable Standards of Accuracy In case the numerical statement are precise and accurate, then these can be enumerated. But in case the number of observations is very large, in that case the figures are estimated. It is obvious that the estimated figures cannot be absolutely accurate and precise. The accuracy, of course, depends on the purpose for which statistics are collected. There cannot be uniform standard of accuracy for all types of enquiries. Thus enumeration refers to exact count as there are ten students of statistics. It is 100% accurate statement. On the other hand, estimation refers to round about figure e.g. we say that two lakhs people participated in the Rally. There can be a few hundreds more or less. Thus statistical results are true only on average. Collected in a Systematic Manner For accuracy or reliability of data, the figures should be collected in a systematic manner. If the

figures are collected in a haphazard manner, the reliability of such data will decrease. Thus for reasonable standard of accuracy, the data should be collected in a systematic manner, otherwise the results would be erroneous. Collected for a Pre-determined Purpose The usefulness of the data collected would be negligible if the data are not collected with some pre-determined purpose. The figures are collected with some objective in mind. The efforts made without any set objective would render the collected figures useless. Thus the purpose of collecting data must be decided well in advance. Besides, the objective should be concrete and specific. For example, if we want to collect data on prices, then we must be clear whether we have to collect whole-sale or retail prices. If we want data on retail prices, then we have to see the number of goods required to serve the objective. Placed in Relation to each other The collection of data is generally done with the motive to compare. If the figures collected are not comparable in that case, they lose a large part of their significance. It means the figures collected should be homogeneous for comparison and not heterogeneous. In case of heterogeneity, the figures cannot be placed in relation to each other. Applications of Statistics The various applications or functions performed by statistics in modern times are discussed as under: Simplification of Complex Facts The foremost purpose of statistics is to simplify huge collection of numerical data. It is beyond the reach of human mind to remember and recollect the huge facts and figures. Statistical method makes it possible to understand the whole in the short span of time and in a better way. Comparison Comparison of data is yet another function of statistics. After simplifying the data, it can be correlated or compared by certain mathematical quantities like averages, ratios, co-efficient etc. In this regard Boddington opined that the object of statistics is to enable comparison to be made between past and present results with a view to ascertain the reasons for changes which have taken place and the effect of such changes in the future.

2. Distinguish between primary and secondary data. What are the methods of collecting primary data?
Answer: - The Difference Between Primary and Secondary Sources of Data Primary data is data, which is collected by the researcher themselves. This kind of data is

new,

original

research

information.

Primary sources enable the researcher to get as close as possible to what actually happened and is hands on. A primary source reflects the individual viewpoint of a participant or observer. Primary sources are first-hand information from a person who witnessed or participated in an event. Examples of primary data are: Interviews Questionnaires Observations

Primary Data

Needs more funds. Investigating Agency collects the data. Requires longer time for collection. More reliable and suitable to the enquiry because the investigator himself collects it. Requires elaborate organisation. No extra precautions are required.

Secondary research is using information that has already been produced by other people. A secondary source is used by a person usually not present at the event and relying on primary source documents for information. Secondary sources usually analyse and interpret. Finding out about research that already exits will help form new research. Examples of secondary data: Internet Books/ Magazines Newspapers Office statistics The government statistics service The office of national statistics Centre for applied social surveys

The distinctions between primary and secondary sources can be ambiguous. An individual document may be a primary source in one context and a secondary source in another. Time is a defining element. For example, a recent newspaper article is not usually a primary source; but a newspaper article from the 1860's may be a primary source for civil war research.

Secondary Data

Needs comparatively less funds. Some other investigating agency collects it for its own use. Requires less time for collection. Less reliable and suitable as someone else has done that job of collection which may not serve the purpose. No need of any organizational set up. Secondary data need more care and attention.

METHODS OF COLLECTING PRIMARY DATA Collecting information is the first step in the business research process, allowing you to know which course of action will improve your company's performance and services. Collecting primary data is one of the best ways to ensure that the information is credible and accurate. In this day and age, conducting primary research is easy with the different mediums that allow businessmen to freely reach to people. Following are the research methods and tips to gather primary data. What you need:

Competent communication skills Competent observation skills Desktop or laptop computer with internet access Printer with colored ink Telephone or mobile phone for making calls

First of all, you need to decide what kind of information you need to gather. Once you have decided on that, you can use the following research methods to gather such information. Interviews There are three different ways to conduct interviews, and they are:

Face-to-face interviews can be conducted by having question and answer sessions with one or more people. Ask people on the streets, go door-to-door to gather information, or make an appointment with an expert. Web-based interviews, on the other hand, make use of the internet to gather information so you will not have to the field for it. This latter method is also less costly and more convenient to use. Telephone interviews are very much similar to face-to-face interviews, but they are

shorter in comparison and more structured. You may also have to send a letter to inform the interviewee in advance so they would expect your call. Surveys and Questionnaires Both are popular means of gathering data and can reach a large number of people, but they need to be designed and reedited repeatedly to make them acceptable to people. You can either print out copies to hand them out to people or send them to your respondents through email. Though this method is relatively cheap to conduct and requires no prior arrangements, surveys and questionnaires have the risk of low response rates and some may turn out to be incomplete. Focus group interviews and consumer panels Gather a group of people, specifically from your company's target market, and have a facilitator guide them in examining a certain product and asking their opinions on said product. This method is primarily used to determine whether a company's new product or brand name will be acceptable to their target market and to the general public. Observation Observation is one of the simplest methods for primary data research and would not cost much. All you have to do is simply take note of the behavior of people towards your company's products and services. You can also try to observe how your competitors behave, and how they provide their products and services. Make sure that you are not alone in observing and have a number of colleagues to do the same thing so you can differentiate between fact and opinion. Collecting primary data maybe difficult and may take a long time to finish, but the end result is that you have the necessary information you can use to make improvements to your company's products and services. 3. Find Karl Pearsons correlation coefficient between the sales and expenses from the data given below: Sales (Rs. Lakhs) 5 0 5 0 1 3 5 5 1 4 6 0 1 6 6 5 1 6 6 5 1 5 6 5 1 5 6 0 1 4 6 0 1 3 5 0 1 3

Expenses (Rs. Lakhs) 1 1

4. The incidence of occupational disease in an industry is such that the workers have a 20% chance of suffering from it. What is the probability that out of six workers 4 or more will contract the disease?

5. Use chi-square test to test if the two attributes (Performance and Training) in the following table are independent. Test at 5% level of significance.

Performance

Training Intensive Good Averag e Above Average 100 150 40 Average 100 100 100 Poor 50 80 150 Total 250 330 290

Total 290 300 280 870

6. Construct index numbers of price for the following data by applying: i) Laspeyres method ii) Paasches method iii) Fishers Ideal Index number

Base year Commodit y A B C D Price 2 5 4 2 Quantity 8 10 14 19

Current year Price 4 6 5 2 Quantity 6 5 10 13