Statistics for Economics Class 11
Introduction
Statistics for Economics Class 11 notes are provided in this post for a better understanding of the students. In applied statistics, the collection, organisation, and presentation of data are all aspects of economic statistics. The CBSE Class 11 Syllabus was used to create these Class 11 Statistics for Economics Notes. These revision notes go into great detail on important topics and ideas organised by chapter. The Chapterwise notes are easily accessible to the students here.
- Economics
- Consumer
- Producer
- Savings
- Investment
- Economic activity
- Economic problem
- Components of economics
- Statistics
- Importance of statistics
- Scope of statistics
- Functions of statistics
Economics
“The study of man in the ordinary business of life” by Alfred Marshall.
Consumer
“A consumer consumes goods and services to satisfy his wants.”
Producer under Statistics for Economics Class 11
Producer: “One who produces or sells goods and services to earn money.”
Savings
Savings is that portion of a person’s income that is not used. It is an art of not consuming from that part of the income.
Investment under Statistics for Economics Class 11
Investment is the money spent by producers to purchase those assets which contribute to the process of income generation.
Economic Activity
As we know the human wants are endless and resources are limited so we need to make optimum use of the available resources to satisfy our wants. Activities that fulfil the purpose of want’s satisfaction by using the limited resources are known as economic activity.
Economic problem
The economic problem is the problem of choice, which arises from the fact that resources are limited and can be used for other purposes.
Components of Economics
There are three parts to economics:
- Consumption: Consumption is the process of using up the utility value of goods and services to directly satisfy our wants.”
- Production: Production is the process of converting raw material into something useful.
- Distribution: This refers to distributing the final goods and services among the general public.
STATISTICS under Statistics for Economics Class 11
Statistics, in its broadest sense, refers to data or information expressed in terms of numbers, such as employment statistics and population statistics.
“Statistics are numerical statements of facts in any department of inquiry placed with regards to each other,” according to Bowley.
Features of Statistics in the Plural Sense
- The aggregate of facts: Since numerical data is essentially an accumulation of facts, it combines multiple facts or information. Therefore any single fact or information will not be termed as statistics but we need collective information. This data is influenced in some way by several factors. For instance, any data on malnutrition will include not only poverty as one of its underlying causes but also other factors like hygiene, the practices of a marginalised community, and so on.
- It is based on average; Statistics have nothing to do with the number that is represented by one company. For instance, the average length of all students in a class is the same, so the height of one student is not mathematical data but the average of the heights of all students is statistical data.
- Numerically expressed: Statistical data is always represented by numbers and not attributes. For example; adjectives with symbolic meanings like rich, poor, tall, etc. have no significance concerning the general mathematical value. On the other hand numerical values like the average length of the bridge is 40 km is statistical data.
- Affected by a variety of causes: Statistics are influenced by many features rather than just one. An increase in an asset’s price, for instance, is not caused by a single factor but rather by a large number of them.
- Reasonable accuracy: Based on the purpose of the investigation, its nature, size, and available resources, the numerical conclusion must be accurate.
- Placed in relation to each other: Quantity-based statistics have a comparative component. This means that data of the same kind from various sources can be compared.
- Estimated: A low estimate can be challenging when the subject matter is extensive, such as the rally’s attendance. However, directly counting numbers is simple and crucial in small learning areas, such as the number of students in each college learning area. Therefore statistics is based on estimation.
- Data collection in a systematic way: The collection of data should be done in a systematic manner, which means collecting data in their raw form without any information about where they came from, what they were used for, or anything else. In the statistical universe this is not allowed.
Statistics in the Singular Sense under Statistics for Economics Class 11
It refers to methods of collecting, organising, presenting, analysing, and interpreting quantitative data.
“Statistics is the science that deals with the methods of collecting, classifying, presenting, comparing, and interpreting numerical data collected to throw some light on any sphere of inquiry,” according to Seligman.
Phases of statistical study
It comprises five stages as follows;
Stage 1: Collecting Data: To begin the journey of statistical research, we must first collect statistical data. In this category, samples and census techniques are frequently employed.
Stage 2: Organization of the data: Yes, organising raw or chaotic data is challenging. The classification of the collected data is the focus of the second phase for this reason. Statistics bars and data collection are used to edit the data.
Stage 3: Presentation of data: This data needs to be presented correctly after being edited. Tables, graphs, and diagrams are frequently used to present data.
Stage 4: Analysing the data: To draw conclusions about the data, we must first determine the percentages, averages, and so forth before proceeding to the final stage. The data analysis toolbox includes percentages, estimates, correlations, and regression coefficients.
Stage 5: Interpretation of Data: Finally, we must translate data and draw conclusions or construct concepts from data. The percentage size, average, and degree of relationship between various economic variables are used to accomplish this.
Importance of statistics under Statistics for Economics Class 11
- Quantitative expression of economic problems- Quantification may be required for further research in Economics to explain the various parameters. Based on such quantitative data, comparisons can be made between various economic sectors and plan periods.
- Working out cause and effect relationship: To formulate policies, causal relationships between various phenomena must be presented using data sets.
- Construction of economic theories or economic models: Concrete data sets are required for the development of economic theories like price variation and product demand.
- Economic forecasting: Forecasting changes in economic influence factors becomes more dependent on statistical data.
- Formulation of policies: National policies are created through the process of policy formulation. When devising an efficient policy, statistics are of great assistance. Numerous economic statistics assist you in developing better policies. In this field, numerous economists employ mathematical tools.
Scope of statistics
- It uses numbers to illustrate the facts. For instance, keeping track of a company’s product sales.
- It investigates the connection between one or more phenomena. For instance, in the field of medical science, for the collection, presentation, and evaluation of observed facts regarding the incidence, causes, and effects of various drugs.
- It aids in policy formulation; Governments, for instance, use data on assets and liabilities, income and expenditures, profits and dividends, and so on to make economic policy.
- It simplifies complicated information. For instance, in astronomy, using observations to determine the most likely measurements of heavenly bodies’ distances, sizes, masses, and densities.
- It makes forecasting easier, such as the outcomes of the stock market, sales, GDP, etc.
- It offers methods for evaluating the hypothesis. For instance, when developing marketing strategies.
- It offers strategies for making decisions when there is uncertainty. For instance, determining the likelihood of a shift in customer demand.
Functions of statistics under Statistics for Economics Class 11
- Figurative representation of the facts: Statistics present the different facts and data points, in such a way that different confused facts become simple, brief and they might be seen without any problem. It uses diagrams and graphs to show facts, which are also helpful to the average person.
- Establishes relationship: Correlation, a statistical technique, can be used to establish a connection between two or more facts. It could be figured out whether these facts have any relationship or not, what is the course and level of connection between them and so forth.
- Comparison; Statistics can be used to compare two or more effects. For this purpose, a variety of averages, rates, percentages, and coefficients are utilised.
- Problems’ interpretation: Different problems can be interpreted with the help of statistical tools. For instance, it is possible to interpret the nature of employment issues among educated individuals by collecting data on unemployment.
- Formation of other scientific laws and principles: Statistics makes it possible to test the various rules and principles of other social and natural sciences by forming laws for them.
- Contributing to the policy making process: Various policy decisions can be made logically and successfully with the assistance of statistics. Examples include export-import policy and price policy.
Conclusion
Introduction to statistics class 11 notes give a wholesome definition of supply and various related concepts. These notes also provide the factors affecting the price elasticity of demand. You can stay active and engaged throughout your reading, revision, and lectures by taking these notes. Additionally, they aid in clear thinking and comprehension. Selectively identify important ideas. A useful record of important information and its sources can be found in these notes. These notes will help you remember what you heard better.