Functions and importance of statistics
Statistical methods are used not only in the social, economic and political fields but in every field of science and knowledge. Statistical analysis has become more significant in global relations and in the age of fast developing information technology.
According to Prof. Bowley, "The proper function of statistics is to enlarge individual experiences".
Following are the some important functions of statistics.
- To provide numerical facts
- To simplify complex facts
- To enlarge human knowledge and experience
- Helps in formulation of policies
- To provide comparison
- To establish mutual relations
- Helps in forecasting
- Test the accuracy of scientific theories
- To study extensively and intensively
The use of statistics has become almost essential in order to clearly understand and solve a problem. Statistics proves to be much useful in unfamiliar fields of application and complex situations such as :
- Planning
- Administration
- Economics
- Trade and Commerce
- Production Management
- Quality control
- Helpful in inspection
- Insurance business
- Railways and Transport companies
- Banking Institutions
- Speculation and Gambling
- Underwriters and Investors
- Politicians and social workers.
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