# Statistics and its limitations

### Limitations of statistics ppt

Limitations of Statistics The limitation of statistical analysis can be described in various points:- 1. The informants would fill in the forms and return them to the officer incharge of investigation. It is a highly specialized job and requires great deal of skill and experience. It is in this sense that the public usually think of statistics, e. There will always be a degree of uncertainty in this study. These are not absolutely true. Control: The management control process combines statistical and accounting method in making the overall budget for the coming year including sales, materials, labor and other costs and capital requirement. They are derived by taking a majority of cases and are not true for every individual. Its greatest drawback is that the informants may not send back the schedules duly filled in. If average of two sections of students in statistics is same, it does not mean that all the 50 students is section A has got same marks as in B.

This is so because statistical results are represented by figures, which are liable to be manipulated. Distrust of Statistics Due to limitations of statistics an attitude of distrust towards it has been developed.

Importance in the field of production. Its greatest drawback is that the informants may not send back the schedules duly filled in.

## Functions of statistics

Here only approximations are made. Instead, scientists express these parameters as a range of potential numbers, along with a degree of confidence. Related posts:. Is there any other source from which you get money regularly? Big business houses maintain a separate department for statistical intelligence, the work of which is to collect, compare and coordinate figures for formulating future policies of the firm regarding production and sales. In the case of indirect personal observation, the persons from whom the information is being collected are known as witnesses or informants. For example, honesty, poverty, etc. Therefore, it is necessary to know the limitations of statistics. If the population census figures issued by the office of the Registrar-General are published in the Indian year Book, this publication will be the secondary source of the population data. Sampling methods are employed in industry in tacking the problem of standardisation of products. The questions must be arranged in a logical order so that a natural and spontaneous reply to each is induced. The main drawback of this method is that the enumerator i. Full Knowledge of the rules of Statistics: For statistical research it is necessary to have full knowledge of the rules of statistics, otherwise, no conclusion can be drawn from the given data.

Also only experts should handle the statistics otherwise they may be misused. Thus the data which are gathered from the primary source is known as primary data and the one gathered from the secondary source is known as secondary data.

Specimen Questionnaire We are giving below a specimen questionnaire of Expenditure Habits or Students residing in college Hostels.

### Statistics and its limitations

Methods of Collection of Primary Data The primary methods of collection of statistical information are the following : 1. A secondary source is the one that furnishes the data that were originally compiled by someone else. Also this may either beenumerated or estimated, where actual enumeration is either not possible or is very difficult. Average Truth: The rules of statistics prove true in the long run and in the average form, are not completely true like the laws of physics. Banking: Statistical data gathering and analysis of the information, help banks in their own business and also give an idea of the general economic situation of every segment of business in which they may have interest. In this type deductions and conclusions are made regarding the population under study by collecting a sample from the population. The merit of this method is its simplicity and lesser degree of trouble and pain for the investigator. Information from Correspondents, and 5. Descriptive Statistics: Descriptive Statistics involves collecting, organizing, summarizing and presenting data. Importance in the field of revenue. Here only approximations are made. These include capturing the perspectives and lived experiences of certain people or groups of people and dynamic realities such as the emotional impact of racial discrimination. Heterogeneous data are not comparable. The numerical facts constitute the raw material of the statistical process.

As it is a delicate science and can be easily misused by an unscrupulous person. For example, the office of the Registrar General will be the primary source of the decennial population census figures.

Inferential Statistics: Inferential Statistics involve making an inference, hypothesis testing, relation determination and making predictions.

For a basic understanding of the major differences between qualitative and quantitative research, see this article.

Statistics is used to confirm or refute some idea. Statistical methods deal with population or aggregate of individuals rather than with individuals.

The questionnaire is put in the charge of trained investigators whose duty is to go to all persons or selected persons connected with the enquiry.

## Limitations of statistics class 11

Using this analysis they can formulate their lending policies. Such phenomena cannot be a part of the study of statistics. Often in statistics, we confirm or refute the null hypothesis, denoted as H0. Information from Correspondents, and 5. Unless the data are collected with sufficient care and are as accurate as is necessary for the purposes of the inquiry, the result obtained cannot be expected to be valid or reliable. Information from Correspondents Under this method certain correspondent are appointed in different parts of the field of enquiry, who submit their reports to the Central Office in their own manner. The interpretation of the ultimate conclusion and the decisions depend upon the accuracy with which the data are collected. Thus, if our population is increasing at par with the population of Australia every year, then we can easily experience the expansion of the population correctly. He should check the result from an independent source.

Where the persons involved in the inquiry would be reluctant to part with the information.

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