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Class notes ECO2102

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The word “statistics” seems to have obtained from the Latin word “Status” or the Italian word “Statista” or the German word “Statistik” each of which means “Political State”. In ancient time the government used to collect information about total population, land, wealth, total number of employees ,soldiers etc. to have the idea of the manpower of the country for formation of administrative set up ,fiscal ,new taxes ,levies and military policies of the government.

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Bangladesh University of Business and Technology
Course Title: Introduction to Statistics
Chapter: Descriptive Statistics


Historical Development of Statistics
The word “statistics” seems to have obtained from the Latin word “Status” or the Italian
word “Statista” or the German word “Statistik” each of which means “Political State”. In
ancient time the government used to collect information about total population, land,
wealth, total number of employees ,soldiers etc. to have the idea of the manpower of the
country for formation of administrative set up ,fiscal ,new taxes ,levies and military
policies of the government.



Definitions of Statistics
Different authors defined statistics in a number of ways .Among those some of the
important definitions are given below:

1. Croxton and Cowden

“Statistics may be defined as the collection, presentation and interpretation of numerical
data”.

2. Bowley

“Statistics are numerical statement of facts in any department of enquiry placed in
relation to each other”.

3. Connor

“Statistics are measurements, enumerations or estimates of natural or social phenomena,
systematically arranged so to exhibit their inner relation”.

4. Yule and Kendal

“By Statistics we mean quantitative data affected to a marked extent by a multiplicity of
causes.”

5. R.A.Fisher

“The science of statistics is essentially a branch of applied mathematics and may be
regarded as mathematics applied to observational data.”

, Importance and Scope of Statistics
In modern times, Statistics is viewed not as a mere device for collecting numerical data
but as a means of developing sound techniques for their handling and analysis and
drawing valid inferences from them.


1. Statistics and Planning

Statistics is indispensable to planning .In the modern age which is termed as „the age of
planning‟, almost all over the world, governments are resorting to planning for the
economic development.

2. Statistics and Economics

Statistical data and technique of statistical analysis have proved immensely useful in
solving a variety of economic problems, such as wages, prices, analysis of time series and
demand analysis.

3. Statistics and Business

Statistics as an indispensable tool of production control also. Business executives are
relying more or more on statistical techniques for studying the needs and the desires of
the consumers and for many other purposes. The success of a businessman more or less
depends upon the accuracy and precision of his statistical forecasting.


4. Statistics and Industry

In Industry, Statistics is very widely used in „Quality Control‟. In production engineering,
to find whether the product is conforming to specifications or not, statistical tools, viz,
inspection plan, control charts, etc.are of extreme importance.

5. Statistics and Mathematics

Statistics and mathematics are very intimately related. Recent advancements in statistical
techniques are the outcomes of wide applications of advanced mathematics.

6. Statistics and Medical Science

In medical science, the statistical tools for the collection, presentation and analysis of
observed facts relating to the causes and incidence of diseases and the results obtained
from the use of various drugs and medicines are of great importance.

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