Statistics play an important role in the field of economics. This role lies in the fact that economics depends upon statistics in connection with the formulation of economics laws and theories. There are mainly three reasons for its dependence:
Firstly, the economic laws relate to masses and tend to describe the behaviors of thousands of people. Statistics help in describing that behavior.
Secondly, economic laws can be stated in a scientific way only when based on statistical data. The example consists of the laws of supply and demand.
Thirdly, an economic phenomenon cannot be subjected to experimentation, for this reason the method of study is to be statistical rather than experimental.
In order to make planning realistic in any economy the objectives are set in quantitative terms. Statistics help in visualizing the target quantitatively and evaluating the achievements.
Firstly, the economic laws relate to masses and tend to describe the behaviors of thousands of people. Statistics help in describing that behavior.
Secondly, economic laws can be stated in a scientific way only when based on statistical data. The example consists of the laws of supply and demand.
Thirdly, an economic phenomenon cannot be subjected to experimentation, for this reason the method of study is to be statistical rather than experimental.
In order to make planning realistic in any economy the objectives are set in quantitative terms. Statistics help in visualizing the target quantitatively and evaluating the achievements.
