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**Economics**Notes Paper 318**NIOS Class 12 Economics Chapter ****5 ****Meaning, Scope And It’s Need in Economics**

**NIOS Class 12 Economics Chapter**

**5****Meaning, Scope And It’s Need in Economics**Also, you can read the NIOS book online in these sections Solutions by Expert Teachers as per National Institute of Open Schooling (NIOS) Book guidelines. These solutions are part of NIOS All Subject Solutions. Here we have given **NIOS Class 12 Economics Chapter 5 Meaning, Scope And It’s Need in Economics**, NIOS Senior Secondary Course

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**Economics****Meaning, Scope And It’s Need in Economics**

**Meaning, Scope And It’s Need in Economics****Chapter: 5**

**Module – III: Introduction to Statistics**

**TEXT BOOK QUESTIONS WITH ANSWERS**

**INTEXT QUESTIONS 5.1.**

**Q. 1. Fill in the blanks with appropriate word from the brackets:**

**(i) What was ‘statistics’ called in the ancient times____________ (science of knowledge, science of a state).**

Ans. Science of state.

**(ii) Statistics is an important tool of___________ (methods, economic planning).**

Ans. Economic planning.

**(iii) The word statistics in a plural sense refers to statistical____________ (methods, data).**

Ans. Data.

**(iv) The word statistics in a singular sense refers to statistical __________(methods, duta)**

Ans. Methods.

**2. Which of the following refers to (quantitative/ qualitative) information.**

**(i) Sita’s height is 5′-6″, whereas Meera is 5′-0″.**

Ans. Quantitative information.

**(ii) Sita is taller than Meera.**

Ans. Qualitative information.

**(iii) Foodgrain production in India was estimated at 199.5 million tonnes in 2000-01.**

Ans. Quantitative information.

**(iv) Anju is the shortest girl in her class.**

Ans. Qualitative information.

**INTEXT QUESTIONS 5.2.**

**Tick (✓) the correct answers.**

**Q.1. Statistical data are:**

(i) Numerical statement of facts.

(ii) Qualitative information.

(iii) Both quantitative and qualitative information.

(iv) Single or isolated facts and figures.

(v) Aggregates of facts.

Ans: (i) Numerical statement of facts.

(v) Aggregates of facts.

**Q.2. State whether the following statements are true or false:**

**(i) Statistics are numerical statements of facts.**

Ans. True.

**(ii) Statistical data are not single or isolated figures.**

Ans. True.

**(iii) Statistical data are qualitative data.**

Ans. False.

**(iv) Statistics are collected for a predetermined purpose.**

Ans. True.

**INTEXT QUESTIONS 5.1.**

**Q.1. Complete the following statements:**

**(i) Statistics in plural sense means ________.**

Ans. Statistical data.

**(ii) Statistics in singular sense means ________.**

Ans. Statistical methods.

**(iii) Statistical data are collected in a ________.**

Ans. Systematic manner.

**(iv) The first step in statistical enquiry is ________.**

Ans. Collection of data.

**(v) The last step in statistical enquiry is ________.**

Ans. Interpretation of data.

**(vi) Analysis of data means drawing conclusions from data with the help of ________.**

Ans. Statistical tools.

**(vii) Reserve Bank of India Bulletin and National Accounts Statistics are sources of ________ data.**

Ans. secondary.

**Q.2. Match the following:**

(a) Collection of data | 1. Mean, mode and median |

(b) Presentation of data | 2. Primary or secondary sources. |

(c) Analysis of data | 3. Arriving at conclusions. |

(d) Interpretation of data | 4. Tables, diagrams and picture. |

Ans.

(a) Collection of data | 2. Primary or secondary sources. |

(b) Presentation of data | 4. Tables, diagrams and picture. |

(c) Analysis of data | 1. Mean, mode and median |

(d) Interpretation of data | 3. Arriving at conclusions. |

**TERMINAL EXERCISE**

**Q.1. State the need of statistics in economics.**

Ans. **Need of statistics in economics:** Statistics plays a very important role in the field of economics. There is need of statistical data in every walk of life. No field of study is complete without the supporting quantitative information about that field. Some of the ways in which statistics is widely used in economics are-in construction of economic theories, in planning, in evaluation of policies of the government, to reveal the structure of an economy.

**Q.2. Describe in brief the scope of statistics.**

Ans. **Scope of statistics:** In ancient times, statistics was used by the state for the purpose of administration. But now-a-days, it is widely used as a tool of all sciences. There is hardly any field whether it be biology, botany, astronomy, physics, chemistry, sociology or psychology where statistical tools are not used. The word statistics is used in two senses:

(a) the plural sense. and

(b) the singular sense.

In a plural sense it refers to quantitative information or simply statistical data. In singular sense, it refers to method or methods used in arriving at the quantitative information or dealing with it. The difference between the two can be explained with the help of the following example:

**Table 5.1. Growth of Population in India**

Year | Population (in crores) |

1951 | 36.1 |

1961 | 43.9 |

1971 | 54.8 |

1981 | 68.5 |

1991 | 84.6 |

2001 | 102.87 |

The above table records population of India in different years. Here only the quantitative information about population are referred the plural sense. In this case the word statistics in is used.

When it is said that population of India was estimated through the census method; that the figures are presented in the tabular form; that population of India is continuously rising and that it is rising on account of fall in death rate, if means it is referred to the methods of collection, presentation, interpretation of trend in data and analysis of data respectively. All these steps are statistical methods. Here the word statistics has been used in the singular sense.

**Q.3. Define statistics in plural and singular case. **

Ans. Statistics in plural case: In a plural sense, facts expressed numerically are called statistics such as data relating to income, production, population, prices, etc. In other words, statistics mean numerical statement of facts.

Statistics in singular case: In singular sense, statistics means science of statistics or statistical method. It refers to techniques or methods relating to collection, classification, presentation, analysis and interpretation of quantitative data.

**Q.4. Define the term statistics in the plural sense and point out its main characteristics.**

Ans. **Statistics in plural sense:** In a plural sense, facts expressed numerically are called statistics such as, data relating to income production, population, prices etc. In other words, statistics mean numerical statement of facts.

**Characteristics of statistical data in plural sense:**

**(i) Statistical data are aggregates of facts:** A single observation is not statistics, it is a group of observations. For example, Ram scored 60 marks out of 100 is not statistics, but a series relating to the marks of a group of students will be termed as statistics. For example, when we say that Mohan, Ram, Mary and Karim scored 35, 60, 75 and 58 marks respectively, the group of figures become statistics. Now we can compare, analyse and draw some conclusions from these figures.

**For example:**

1. Highest marks obtained are 75.

2. Lowest marks obtained are 35.

3. Marks range between 35 and 75.

4. Average marks obtained

= [35 + 60 +75 + 58]/ 4 = 57 marks.

**(ii) Statistics are affected by multiplicity of causes:** Generally, the facts and figures are affected by a number of factors working together. For example, the production of rice depends on rainfall, method of cultivation, seeds, manure, soil fertility, etc. but it is very difficult to study separately the effect of each of these factors on the production of rice.

**(iii) Statistical data are numerically expressed:** All statistics numerically expressed. Qualitative statements such as ‘the population of India is increasing rapidly’ or ‘India’s per capita income is low’ are not statistics unless they are assigned numerical values.

**(iv) Collected in a systematic manner:** Statistics should be collected systematically in a planned way. Before collecting data, a suitable plan for their collection should be prepared. Data collected in an unsystematic manner would lead to misleading conclusions.

**(v) Statistical data must be obtained with reasonable degree of accuracy:** Statistics are numerical statements which can be obtained with accuracy if the number of observations is small. Sometimes, when actual measurement of figures is not possible in a particular field of inquiry, then method of estimation or approximation is applied. For example, if we say that there are 30 students in XI class of XYZ public school, the figure is 100 percent accurate if we apply counting method. But, on the other hand, if we say that 20,000 people are watching the cricket match, this figure can be obtained only by estimation method, i.e., as an approximation.

**(vi) Statistics are collected for a prede-termined purpose:** The purpose of collecting data should be decided in advance. The purpose should be clearly defined. Otherwise collected data will be of no use. Suppose we want to compare the performance of students of secondary level of National Institute of Open Schooling in one subject or more we must specify the subjects and the year for which comparison is being carried out before collecting data.

**Q.5. State briefly the various stages of a statistical enquiry.**

Ans. **The various stages of a statistical enquiry are as follows:**

**(i) Collection of data:** Collection of data is the first step of a statistical enquiry. Statistical data are mainly classified into primary and secondary data. Primary data is data collected directly through survey.

Secondary data is data collected from other sources and which have been published. For example Reserve Bank of India Bulletin and National Accounts Statistics are published data i.e. secondary data.

**(ii) Organisation of Data:** Organisation of data refers to the arrangement of figures in such a form that comparison of the mass of similar data may be facilitated and further analysis may be possible. An important method of organisation of data is to distribute data into different classes or subclasses on the basis of their characteristics. This process is called classification of data.

**(iii) Presentation of Data:** The presentation of data means exhibition of the data in such a clear and attractive manner that these are easily understood and analysed. There are many forms of presentation of data of which the following three are well known textual or descriptive presentation, tabular presentation and diagrammatic presentation.

**(iv) Analysis of Data:** After the data have been collected, organised and presented, they need to be analysed. Analysis of data is a technique through which significant facts from the numerical data are abstracted. One of the most important objects of statistical analysis is to get one single value that describes the characteristics of the whole data. Analysis of an economic or other problems is not possible without the use of certain statistical tools such as measures of central tendency like mean, median or mode.

**(v) Interpretation of Data:** Interpretation of data is the last stage of a statistical enquiry. After making analysis with the help of statistical tools, we interpret the data to derive some conclusions in order to formulate certain policies. Interpretation must be done carefully, as wrong interpretation will lead to formulation of wrong policies and hence do more harm than good.

**Q.6. What are the principal sources of data?**

Ans. The sources of data are primary and secondary. Primary data is data collected directly through survey. Secondary data is data collected from other sources and which have been published.

**Some Other Important Questions For Examinations**

**Very Short Answer Type Questions**

**Q.1. Define statistics.**

Ans. Statistics may be defined as the collection, presentation, analysis and interpretation for numerical data.

**Q.2. What are the statistical tools?**

Ans. Statistical tools are those tools through which statistical methods are applied.

**Q.3. Define statistics in plural sense.**

Ans. In a plural sense, facts expressed numerically are called statistics such as cata relating to income, production, population, prices, etc. In other words, statistics mean numerical statement of facts.

**Q.4. Is statistics a science or an art?**

Ans. Statistics is a science as well as an art. As a science, it studies data in a systematic manner and as an art it makes use of data in the solution of various problems.

**Q.5. Who used the term statistics for the first time?**

Ans. German scientist Gottfried Achenwal used the term statistics for the first time in 1749. He is known as “Father of Statistics”.

**Q.6. From which Latin word the term statistics has been derived?**

Ans. The word ‘statistics’ has been derived from the Latin word ‘status’.

**Q.7. What do you mean by organisation of data?**

Ans. Organisation of data means classification of data and their presentation in the form of tables, diagrams, graphs, etc.

**Q.8. What is primary data?**

Ans. Primary data is data collected directly through survey.

**Q.9. What is secondary data?**

Ans. Secondary data is data collected from other sources and which have been published.

**Q.10. Mention the stages through which a statistical enquiry passes.**

Ans. A statistical enquiry passes through the stages of collection, presentation, analysis and interpretation of data.

**Q.11. Give the meaning of statistics in singular sense.**

Ans. In singular sense the term statistics means statistical methods.

**Q.12. What is the use of statistical data in planning?**

Ans. Statistics is an important tool of economic planning. Planners use statistical data to formulate policies for economic development.

**Q.13. “Statistical data are numerically expressed.” Give an example.**

Ans. All statistics are numerically expressed. Qualitative statements such as ‘the population of India is increasing rapidly’ or ‘India’s per capita income is low’ are not statistics unless they are assigned numerical values.

**Q.14. What is the first step of a statistical survey?**

Ans. Collection of data is the first and most important step of a statistical survey.

**Q.15. Define classification.**

Ans. Grouping of collected data according to their identity and similarity in classes or subclasses is called classification.

**Q.16. What do you mean by analysis of classified data?**

Ans. Analysis of classified data means drawing conclusions from data with the help of statistical tools.

**Q.17. What do you mean by interpretation of data?**

Ans. Interpretation of data means drawing the conclusions which can be further used in making policies.

**Q.18. Mention any two needs of statistics.**

Ans. (i) Statistics is needed for statistical data.

(ii) It is needed to reveal the structure of an economy.

**Q.19. Mention any two scopes of statistics.**

Ans. (i) Statistics is helpful in making comparisons.

(ii) It is helpful in formulating policies.

**Q.20. Mention any two limitations of statistics.**

Ans. (i) Statistics does not deal with individual.

(ii) It studies only quantitative facts.