Concepts In "Statistics" For "Economics"

By Anonymous - September 05, 2021

WELCOME TO YOU

I heartily welcome you to read this post on few important concepts related to "Statistics" in economics.

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Introduction to the reader

Namaste, before understanding the concepts in statistics (stats) let us understand the Meaning, need, requirement and importance of statistics in Economics.

Statistics

The word statistics has been derived from the Latin word "Status" and Italian word "Statista" which means a Political State.

The word "statistics" is used in two ways:

Singular
plural.

Singular

Singular means collection, classification and presentation of the data.

Plural

Plural sense statistics means the data. It refers to all the statistics as a single data.

Importance of statistics in economics

Statistical data is useful to understand the economic problems.
With the help of statistics we can analyse the nature of many economic problems like poverty, unemployment, etc.
The increasing importance of statistics in the study of economic problems has resulted in a new branch of study called Econometrics.

Concepts

Let us look at some of the important concepts in statistics along with the procedure to do statistical problems when the data is presented.

Arithmetic mean

Arithmetic mean of the data refers to the value where we get by adding all the values and divide it with number of items.

arithmetic mean = the sum of all the items or entries / (divided by) the number of items.

Finding AM (arithmetic mean) of the data

x|AM = Σx/n
arrange the given items in any of the order you desire.
add all the items or values one by one.
Now divide the value from number of items which you've added.
now process it according to the formula shown above.
That is the mean of the data.

Pie diagram or Circle chart

It is also called as pie chart. Here, the circle is divided into many parts. The components are drawn as straight lines from the centre to the circumference.

Bar diagram

It is also called as bar chart, a bar diagram or bar graph and bar Graphin in British English.

Bars are vertical lines where the lines are proportional to their corresponding numerical values.

Median

It is the measurement of centred value which appears in the middle of the given order of the data. It is also called as the "middle most value". It is the average value.

Mode

It is the most happening or occurring word in the given data. for example, if any word is continuesly repeating more number of times among all words, that is called as the mode value.

Simple bar diagram

A simple bar chart is used to represent data involving only one variable. which is classified on a spatial, quantitative or temporal basis. It consist of a group of equal spaced and equal width rectangular parts for each class of the data.

Multiple bar diagrams

Multiple bar diagrams are used in case of comparing different variables it may be two or more set of data. Each set of data is shown separately in different columns in the diagram.

Component bar diagram or (subdivided bar diagram)

It is used to show the data where the given data is again divided into different components or subdivisions. These diagrams are used to show the different parts of the total data.

Process to find the median

Arrange the given values or items of data in your preferable order either in ascending or descending order.
Formula: Median = n+1/2nd item
follow the process from the formula.

Process to find mode from the given data

rearrange the given data into any of the order if you get confuse
mode = most repeated item or value.
now observe and find out the value which is occurring continuously.
That was the answer.