Limitation of Statistics

Date : 18.4.2020
Sub  : Economics
Class : 11
Day   : 4
Period : 2
Time   : 8:20am -9am


Learning Outcomes

• Students will learn the limitation of Statistics
• Students will realise that every quantitative data is not Statistics
• Subject matter of Statistics which is Descriptive and Inferential

A very good morning Students

I hope you have made your notes from yesterday's class.

Please make sure that you make your notes because very soon i will be testing you on it.

Today we are going to look at the second part of the First chapter which is Limitation of Statistics

Statistics must be regarded as an instrument of research of great value but barring severe limitations which are not possible to overcome.

The following are the LIMITATIONS OF STATISTICS

• STUDY  OF NUMERICAL FACTS ONLY : Statistics studies only such facts that can be expressed in Numerical terms. It does not study qualitative phenomena like honesty, friendship, wisdom, health, patriotism, justice, etc.

• STUDY OF AGGREGATES ONLY : Statistics studies only the aggregates of quantitative facts.It does not study Statistical facts relating to any particular unit. Example: Suppose Mr Dennis  Mathew earns Rs 50000 per month.but, as this fact relates to an individual person, it is not deemed as a suject matter of Statistics. Suppose we study the income of teachers of St Columba's School to know the difference between what a Senior School Teacher earns and what a Junior School teacher earns it becomes a subject matter of Statistics.

• HOMOGENEITY OF DATA, AN ESSENTIAL REQUIREMENT:  To compare data,it is essential that Statistics are uniform ( same) in quqntity.Data of different qualities and kinds cannot be compared. For Example , production of foodgrains cannot be compared with production of cloth. It is so because cloth is measured in metres and foodgrains in tonnes.However we can compare them in value which means in Rupees but not in volume which is quantity.

• RESULTS ARE TRUE ONLY ON AN AVERAGE : Most Statistical findings are true only as Averages.They only express the broad tendencies. Example  If it is said that per capita income in India is Rs 50000 per annum, it does not mean that the income of each and every Indian is Rs 50000 per annum.Some may have more and some may have less

• WITHOUT REFERENCE ,RESULTS MAY PROVE TO BE WRONG  : In order to understand the the outcome ( result) correctly, it is necessary that the circumstances and conditions under which these results have been drawn are also studied.Otherwise , they may prove to be wrong.

Example : Suppose there are two businesses , one of cloth and the other is of Paper.

Suppose profits during 3 years in cloth business was Rs 1000 , Rs 2000, Rs 3000.

Now Profits during 3years in Paper business was Rs 3000, Rs 2000, Rs 1000.

If we see that the average profit of both business is Rs 2000 per annum.

The conclusion that may be drawn is that both business have the same Economic status,but this is not true.

What we actually find out is that cloth business is making progress whereas paper business is on the decline.

• CAN BE USED ONLY BY EXPERTS  :Statistics can be used only by those persons who have special knowledge of Statistical methods.Those who have little or no knowledge about the methods cannot make sensible use of Statistics.

• PRONE TO MISUSE : Misuse of Statistics is very common. Statistics may be used to support a pre-drawn conclusion even when it is absolutely false.Misuse of Statistics is indeed its greatest limitation.

Dear boys we will end our class here .

I have made these notes specifically for you.

Please learn them because it is important from the point of view of the examination.

You can either write it in your copies but i am very comfortable even if you get a print out of it and stick it in your copy.

THANK YOIU