Statistics For Economists Module One
Mekelle University
STATISTICS FOR ECONOMISTS
A TEACHING MATERIAL FOR
STUDENTS MAJORING IN ECONOMICS
Module I
Department of Economics
Faculty of Business and Economics
Mekelle University
2020
Mekelle
,
,Statistics For Economists Module One Mekelle University
1.0 INTRODUCTION
Welcome to world of statistics!
Statistics is one of the most important and useful subjects taught in business as well as
economics school. The overall objective of this chapter is to acquaint you with the
introductory concepts in statistics and introduce you with different aspects of statistics.
Learning Objectives
When you have completed this chapter, you will be able to:
To define statistics and its branches
To introduce you with the basic concepts in statistics
To give some illustrations in its application
Presently, there is no successful social as well as natural scientist can function with out
some knowledge of statistics. Now days, statistics has developed to an extent that it
has become indispensable in all aspects of our activities. We frequently see or hear
the following kinds of statements:
The unemployment rate has dropped to 11%
The GNP of Sub-Saharan African countries is rising at 1.7% per annum
The average coffee Price in Addis Ababa become 10 Birr/kg
And so on
All the aforementioned statements are some of the statistics (numerical facts) we
encounter. Now let’s turn our discussion towards defining statistics and the different
aspects (branches) of statistics.
Page 2 of 89
, Statistics For Economists Module One Mekelle University
1.1 Meaning of Statistics and Its Branches
The word statistik comes from the Italian word statista (meaning “statesmen”). The
term first used by Gottfried Achenwall (1719 –1772), a professor in Marlborough and
Gottingen. Dr E.A.W Zimmerman introduced the word statistics in to England. Sir. John
Sinclair in his work, Statistical account of Scotland 1791 –1799 popularized its use.
Long before the 18th c, however, people had been recording and using data.
Different individuals have defined the term ‘statistics’ differently. However, the
meaning of statistics can be divided in to two major categories. These are:
The plural sense (statistical data/numerical facts)
The singular sense (statistical method /or as a field of study)
The plural sense: Statistics in its plural sense refers to numerical facts, figures or
statistical data. Example: population statistics, production statistics, etc.
But merely all-numerical data do not fulfill the quality of statistics. Hence, numerical
data must possess the following characteristics in order to be called statistics.
i. Statistics are numerically expressed. But every numerical data may not be
statistics. It should be well defined.
ii. Statistics are aggregates of facts. It should be general and does not concern
about individuals at specific manner.
iii. Statistics are affected to a marked extent by multiplicity of causes.
iv. Statistics are enumerated or estimated according to reasonable standards of
accuracy.
v. Statistics are collected in a systematic manner.
Page 3 of 89
Mekelle University
STATISTICS FOR ECONOMISTS
A TEACHING MATERIAL FOR
STUDENTS MAJORING IN ECONOMICS
Module I
Department of Economics
Faculty of Business and Economics
Mekelle University
2020
Mekelle
,
,Statistics For Economists Module One Mekelle University
1.0 INTRODUCTION
Welcome to world of statistics!
Statistics is one of the most important and useful subjects taught in business as well as
economics school. The overall objective of this chapter is to acquaint you with the
introductory concepts in statistics and introduce you with different aspects of statistics.
Learning Objectives
When you have completed this chapter, you will be able to:
To define statistics and its branches
To introduce you with the basic concepts in statistics
To give some illustrations in its application
Presently, there is no successful social as well as natural scientist can function with out
some knowledge of statistics. Now days, statistics has developed to an extent that it
has become indispensable in all aspects of our activities. We frequently see or hear
the following kinds of statements:
The unemployment rate has dropped to 11%
The GNP of Sub-Saharan African countries is rising at 1.7% per annum
The average coffee Price in Addis Ababa become 10 Birr/kg
And so on
All the aforementioned statements are some of the statistics (numerical facts) we
encounter. Now let’s turn our discussion towards defining statistics and the different
aspects (branches) of statistics.
Page 2 of 89
, Statistics For Economists Module One Mekelle University
1.1 Meaning of Statistics and Its Branches
The word statistik comes from the Italian word statista (meaning “statesmen”). The
term first used by Gottfried Achenwall (1719 –1772), a professor in Marlborough and
Gottingen. Dr E.A.W Zimmerman introduced the word statistics in to England. Sir. John
Sinclair in his work, Statistical account of Scotland 1791 –1799 popularized its use.
Long before the 18th c, however, people had been recording and using data.
Different individuals have defined the term ‘statistics’ differently. However, the
meaning of statistics can be divided in to two major categories. These are:
The plural sense (statistical data/numerical facts)
The singular sense (statistical method /or as a field of study)
The plural sense: Statistics in its plural sense refers to numerical facts, figures or
statistical data. Example: population statistics, production statistics, etc.
But merely all-numerical data do not fulfill the quality of statistics. Hence, numerical
data must possess the following characteristics in order to be called statistics.
i. Statistics are numerically expressed. But every numerical data may not be
statistics. It should be well defined.
ii. Statistics are aggregates of facts. It should be general and does not concern
about individuals at specific manner.
iii. Statistics are affected to a marked extent by multiplicity of causes.
iv. Statistics are enumerated or estimated according to reasonable standards of
accuracy.
v. Statistics are collected in a systematic manner.
Page 3 of 89
