SMU MBA ASSIGNMENTS

Functions of Statistics

Statistics is used for various purposes. It is used to simplify mass data and to make comparisons easier. It is also used to bring out trends and tendencies in the data as well as the hidden relations between variables. All this helps to make decision making much easier. Let us look at each function of Statistics in detail.

1. Statistics simplifies mass data

The use of statistical concepts helps in simplification of complex data. Using statistical concepts, the managers can make decisions more easily. The statistical methods help in reducing the complexity of the data and consequently in the understanding of any huge mass of data.

2. Statistics makes comparison easier

Without using statistical methods and concepts, collection of data and comparison cannot be done easily. Statistics helps us to compare data collected from different sources. Grand totals, measures of central tendency, measures of dispersion, graphs and diagrams, coefficient of correlation all provide ample scopes for comparison.

3. Statistics brings out trends and tendencies in the data

After data is collected, it is easy to analyse the trend and tendencies in the data by using the various concepts of Statistics.

4. Statistics brings out the hidden relations between variables

Statistical analysis helps in drawing inferences on data. Statistical analysis brings out the hidden relations between variables.

5. Decision making power becomes easier

With the proper application of Statistics and statistical software packages on the collected data, managers can take effective decisions, which can increase the profits in a business.

Primary Data

• Needs more funds.
• Investigating Agency collects the data.
• Requires longer time for collection.
• More reliable and suitable to the enquiry because the investigator himself collects it.
• Requires elaborate organisation.
• No extra precautions are required.

Secondary Data

• Needs comparatively less funds.
• Some other investigating agency collects it for its own use.
• Requires less time for collection.
• Less reliable and suitable as someone else has done that job of collection which may not serve the purpose.
• No need of any organizational set up.
• Secondary data need more care and attention.