Explain the scope of Statistics.

Definition:

Statistics is the study of collection, organization, analysis, interpretation and presentation of data with the use of quantified models. In short, it is a mathematical tool that is used to collect and summarize data.

Scope of Statistics:

1. It presents the facts in numerical figures. For example, recording the sales of various products in a company.
2. It studies relationship between two or more phenomena. For example, in medical science, for collection, presentation and analysis of observed facts relating to causes and incidence of diseases and the result of application of various drugs.
3. It helps in formulation of policies. For example, Economic policy is formulated by governments by considering and correlating the data regarding profits & dividends, assets & liabilities, income & expenditures.
4. It presents complex facts in a simplified form. For example, in Astronomy, to find most probable measurements of the distance, sizes, masses and densities of heavenly bodies by means of observations.
5. It helps in forecasting. For example, stock market results, sales, GDP etc.
6. It provides techniques for testing of hypothesis. For example, in planning the marketing strategies.
7. It provides techniques for making decisions under uncertainty. For example, finding the probabilities for change in customer demand.