Limitations of Statistics – Economics | Management Class 11

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Limitations of StatisticsReference Notes | Commerce
Limitations of Statistics – Economics
For: Management Class 11

Statistics has wide applications in almost every sphere of human activities. There is nearly no place where statistics is not used. In spite of being many applications, the following are few limitations of statistics:

1. Statistics does not study individual:
It deals with aggregate of facts and doesn’t give any individual measurement. Individual item do not constitute statistical data and are meaningless for statistical enquiry. For example, a student’s marks in economics can’t be considered as statistics but the marks obtained by all the students make statistics.

2. It is not suitable to the study of qualitative phenomenon:
Statistics always studies the quantitative characteristics of the given problems. Qualitative phenomenon like honesty, culture, love, poverty, etc, can’t be expressed numerically or direct statistical analysis. However, those phenomenon can be expressed indirectly of numbers and analyzed in statistics.

3. Statistical relations are not exact:
Most of the statistical analysis is based on the collected data that may not be 100% correct. If the data are not correct, then the result obtained from such data can’t be expected 100% accurate. Thus, it just describes the phenomenon on the average.

4. Statistics is liable to be misuse:
There is a great possibility of the misuse of statistics. Any person can misuse statistics and draw any type of conclusions he likes. Only the experts can handle statistical data properly. When statistical data are in the hand of in-expert, at that condition, it may lead wrong information and most fallacious conclusions. So, statistics might be harmed in the hand of unskilled person.

5. One of the methods of solving problem:
There are many methods of solving the given problem. It is one of method of solving the problem. It may not be suitable for all the problems.

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