Statistics: Introduction

Topics in this chapter

• Meaning, Scope and Functions
• Statistical Enquiry and Investigation
• Data Sources, Types and Collection
• Classification and Organisation of Data
• Data Presentation, Analysis and Averages
• Interpretation, Applications and Limitations

Cheat sheet

Practice questions

1. Question 1Q-614AA0

   Which statement best distinguishes statistics in the plural sense from statistics in the singular sense?

   1. A.Plural statistics means statistical methods, while singular statistics means numerical facts.
   2. B.Plural statistics means numerical facts collected for a purpose, while singular statistics means the methods used to collect, analyse and interpret data.
   3. C.Plural statistics refers only to population data, while singular statistics refers only to sample data.
   4. D.There is no difference between the plural and singular meanings of statistics.
   See the answer and solution
2. Question 2Q-425EE4

   A government compares the average income and unemployment rates of different states before designing an employment programme. Which use of statistics in economics is most directly illustrated?

   1. A.Facilitating comparison and helping in policy formulation
   2. B.Eliminating the need for economic theory
   3. C.Proving that every economic relationship is causal
   4. D.Replacing all qualitative information with personal opinions
   See the answer and solution
3. Question 3Q-0B1638

   Which conclusion is most appropriate when statistical data show that areas with higher literacy rates also have higher average incomes?

   1. A.Higher literacy definitely causes higher income in every area.
   2. B.The two variables are associated in the observed data, but other factors may also explain the relationship.
   3. C.Literacy and income cannot be compared because both are economic variables.
   4. D.The data are useless unless they produce identical values for all areas.
   See the answer and solution
4. Question 4Q-0FFBF2

   State any two limitations of statistics in the study of economics.

   See the answer and solution
5. Question 5Q-26FF5E

   Which of the following best represents statistical data?

   1. A.The height of one particular student measured once
   2. B.A set of numerical facts collected systematically for a definite purpose
   3. C.An individual opinion about the prices of goods
   4. D.A randomly remembered figure with no stated purpose
   See the answer and solution