Introduction To Statistics WA a. \\"Synopsis Basic Terms Definition of Economics Ordinary Business Of Life What Is Economic Problem Why Economic Problem Arise Economy And Its Components Factors Of Production Meaning Of Statistics a a aBasic Terms 1. Consumer — A person who purchases goods and services for personal use. 2. Producer — A person who produces goods. Example: Manufacturer. 3. Seller - A person who sells goods/services to make a profit. Example: Shopkeepe! CAST ee Wc la em CaM oel alam ea te meer tee 5. Investment — An investment is the purchase of goods that are not consumed today but are used in the future to create wealth.Definition Of Economics Alfred Marshall a great propounder of Modern Economics defines we ML ) part of wealth economics as NeuMeMeCA TK é maT ery o eee mankind in theDefinition Of Economics “Economics is the study of how people and society choose to employ scarce resources that could have alternative uses in order to produce various commodities that satisfy their wants and to distribute them for consumption among various persons and groups in society.”Ordinary Business Of Life Economics is a study of mankind in the ordinary business of life. Individual and social life actions which are closely connected with Saat Mel Uae e1aT- | eter Ul etal iaWhat Is Economic Problems Economic Problems are the problems of choice, or of allocating scarce resources to other uses due to scarcity of resources. These resources have alternative uses, which is why the problem of choice arises. SCARCITYWhy Economic Problem Arise Human wants are unlimited, but the resources to satisfy those wants are limited and these resources LFW oe] kl acm Resource Scarcity gives rise to the problem of choice among consumer and they make rational choice to satisfy their demand. (>, >,Economy And Its Components A system in which people get a living to satisfy their wants through the processes of Production, Consumption, Investment and Exchange. It has four components: 1. Production: It is defined as ‘creation of utility’. It is the process in which inputs are transformed to aonoade ar carvicoacEconomy And Its Components 3. Investment: It is a part of production which is committed for future income. 4. Distribution: It is a part of production which explains how the national income is distributed among different factors of production.Factors Of Production There are four factors of production: 1. Land: Part of the income goes to the owner of land in the form of rent 2. Labour: Part of the income goes to the labourers for sual -Tia-1a oe a aa KOOL Re) MIX) 2 LfPanitale Dart af tho inrenamoa aqnac tn tho numor anfWCET ROLL ae Statistics is the quantitative information of facts and aise arce Tamaya “Statistics may be defined as the collection, organisation, presentation, analysis and interpretation of data” {CO-PAI}Scope Of Statistics 1. In Planning: Planning is the combination of vision, goals, objectives, strategies, policies, etc. Statistics helps to get the necessary information about the planning which depends upon the analysis of statistical data. 2. In Economics: Statistical Analysis are used in solvingScope Of Statistics 3. In Business: Statistics help businesses to test and make correct decisions about the location of the business, marketing the product, financial resources, etc, based on the statistical information. 4. In State Management: In order to set different policies to run an economy efficiently and allocatingScope Of Statistics 5. In Research Activities: Statistical techniques are used for collecting information during research and also for analysis and interpretation of research findings. 6. In Administration: It is being widely used to formulate and forecast different plans and policies of the state administration.Importance Of Statistics In Economics Statistics has emerged as a lifeline of economics. 1. Quantifying economic problem: For example, unemployment is said to be 20% of India’s working population. 9 Intar. Cartarasal CFamnaricnnes Enr gvamnia InanbingImportance Of Statistics In Economics 3. Cause and Effect Relationship: For example, the cause of unemployment and its effect on market, inflation rate or on the economy’s growth. 4. Formulating Policies: For example, in order to set the budget for the economy which helps in Fiscal policy.Importance Of Statistics In Economics 6. Constructing Economic Theories: For example, we use statistics in Consumer Theory of Demand and Producer Theory of Supply, etc.Statistics Methods Are No Substitute For Common Sense Statistical data may be misinterpreted. Statistical data may be politically influenced. Statistical data may involve personal bias. Statistical data may be manipulated. Statistical data may fail to reveal the errors committed.