Statistics is a mathematical science pertaining to the collection, analysis, interpretation or explanation and presentation of data. It provides tools for predicting and forecasting the economic activities. It is useful for an academician, government, business etc.
Statistics is an inevitable tool for an economist to analyse various economic problems. Statistics is important for the study of consumption, production, exchange, and distribution and for planned development. The limitations of statistics are :
On the basis of various definitions provided by economists, statistics has been broadly defined in two senses: first is in plural sense and the second is in singular sense.
In plural sense, statistics refers to numerical facts and figures collected in a systematic manner with a specific purpose in any field of study.
It is not useful for individual cases.
It ignores qualitative aspects.
It deals with average only.
Improper use of statistics can be dangerous.
It is only a mean, not an end.
It do not distinguish between cause and effect and
Its results are not always dependable