Statistics: Introduction · Class 11 · CBSE · Commerce Economics
State any two limitations of statistics in the study of economics.
Practice question from Statistics: Introduction (Class 11 · CBSE · Commerce Economics), with the correct answer and a step-by-step solution.
medium · Subjective · Q-0FFBF2
State any two limitations of statistics in the study of economics.
Answer: Statistics deals mainly with aggregates and numerical facts, so it cannot adequately study a single individual case or purely qualitative characteristics. Statistical results may also be misused or misinterpreted, and they do not by themselves establish cause-and-effect relationships.
Solution
Statistics generally studies aggregates rather than isolated cases and requires information to be expressed numerically. Its conclusions must be interpreted carefully because statistics alone cannot prove causation and may be misleading if data are selected or used improperly.
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