# Class 11-commerce TR JAIN AND VK OHRI Solutions Statistics for Economics Chapter 1 - Concept of Economics and Significance of Statistics in Economics

18

## Concept of Economics and Significance of Statistics in Economics Exercise 18

### Solution SAQ 1

- Statistics means
**quantitative information.**

It deals with quantitative information only and does not take qualitative data into consideration. Qualitative variables such as beauty, honesty and kindness cannot be studied.

- Statistics and economics are
**complementary to each other**.

Statistics plays a significant role in Economics. It

- Expresses economic problems quantitatively.
- Facilitates inter-sectoral and inter-temporal comparison.
- Helps in studying the cause and effect relationship between different economic variables which leads to construction of economic theories.

- The term population refers to the
**aggregate of all items****relating to****statistical study****.**Thus, if statistical study comprises 200 items, then population is 200. - Descriptive statistics means those methods
**which are used for collection, presentation and analysis of data**. Under this, following estimations are done:

- Measurement of central tendencies such as mean, median, mode, quartiles, deciles and percentiles
- Measurement of dispersion such as range, quartile deviation, mean deviation and standard deviation
- Measurement of correlation through a scatter diagram and correlation coefficient.

### Solution SAQ 2

List of statistical information which will be required to facilitate comparison of academic performance of my school with the other schools in my neighbourhood:

- Data of the total number of schools and the total number of students in each school
- Average marks obtained by students in each class in each school
- Average marks of all students in each school
- Coefficient of variation of marks

Academic performance of a school is better when average marks are highest and coefficient of variation is lowest.

### Solution SAQ 3

Statistical variables which show cause and effect relationship with each other:

**Price of a commodity and quantity supplied:**Price of a commodity and quantity supplied are positively related to each other. That is, when the price of the commodity increases, more units of a commodity are supplied by the producer in the market and*vice versa*.**Price of a commodity and quantity demanded:**Price of a commodity and quantity demanded are negatively related to each other. That is, when price of the commodity increases, less units of a commodity are demanded by the consumer and*vice versa*.