Posts

BUSINESS STATISTICS: How to compute Mean, Standard deviation and Coefficient of Variation

Business Statistics Statistics: Croxton and Cowden says – “Statistics may be defined as the science of collection, presentation, analysis and interpretation of numerical data”. Boddington says – “Statistics is a Science of estimation and probability”. “Statics may be called the Science of Counting” – A. L. Bowley. Encyclopedia of Britannica , - “As is commonly understood now-a-days, statistics is mathematical discipline connected with the study of masses of quantitative data of any kind”. Statistics is a science of making decisions with respect to the characteristics of a group of persons or objects on the basis of numerical information obtained from a randomly selected sample of the group. Nature of Statistics: 1   Statistics are aggregates of facts:      Statistics are affected considerably by multiplicity of courses: 3.       Statistics are numerically expressed: 4.      ...
Post a Comment
Read more

BUSINESS STATISTICS: CONSTRUCTION OF INDEX NUMBER AND FORMULAS

Image
INDEX NUMBER Introduction:  Index number is an indicator of changes in prices and quantities. It is a specialized average designed to measure the change in a group of related variables over a period of time.  It is also an indicator of inflationary or deflationary tendencies. Features of Index Number:  Following are the various feature of index number: 1. Measures of relative changes:  Index number measure relative or percentage changes in the variable over time. 2. Quantitative expression:   Index numbers offer a precise measurement of the quantitative change in the concerned variable over time. 3. Average:   Index number show changes in terms of average. Advantages of Index Number: 1. Measurement of change in the price level or the value of money:  Index number can be used to know the impact of the change in the value of money on different sections of the society. 2. Knowledge of the change in standard of livin...
Post a Comment
Read more