Chapter 1 Introduction

## IMPORTANT CONCEPTS

1. Meaning of Statistics in plural sense :– It is a collection of numerical facts.
2. Meaning of Statistics in Plural Sense :– It deals with the collection, presentation, analysis and interpretation of quantitative information.
3. Definition of statistics in Plural Sense :– It means aggregate of facts affected to a marked extent of multiplicity of causes numerically expressed, enumerated or estimated according to reasonable standard of accuracy, collected in a systematic manner for predetermined purpose and placed in relation to each other.
4. Consumer :– A person who buys goods and services for the satisfaction of human wants.
5. Producer :– A person who produces goods.
6. Service holder :– A person who is working or in a job and gets paid for it.
7. Service Provider :– A person who gives services to others for a payment.
8. Economic activity :–
Activities undertaken for monetary gain or to earn income.

9. Economics is divided into three parts :

a] Consumption
b] Production
c] Distribution

10. Consumption :

In consumption, we study wants, their origin, nature and characteristics and the laws governing them.

11. Production :

It refers to all activities which are undertaken to produce goods and services for generation of income and satisfaction of wants.

12. Distribution :

Economic activity which studies how income generated from the production process is distributed among the factors of production.

13. Data :

Economic facts in terms of numbers.

14. Importance of Statistics :

Statistics is widely used in many fields.
a] Importance to the Government :– Statistics is used in administration and efficient functioning of departments. It collects data to fulfill its welfare objectives.
b] Importance of Statistics in Economics :-

1] Statistics helps in making economic laws like law of demand and concept of elasticity.
2] It helps in understanding and solving economic problem.
3] It helps in studying market structure.
4] It helps in finding mathematical relations between variables.

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