Functions and importance of statistics in economics

1.	Functions and importance of statistics in economics
Answer» Importance of statistics:\tFormulation of economic laws:\xa0it helps in formulation of laws and models e.g. law of\xa0demand has been developed by the inductive method of genralisation which is based on statistical principles.\tUnderstanding economic problems:\xa0it plays\xa0a vital role in understanding and solving economic problems such as poverty, unemployment, etc.\tStudy of market structures:\xa0study of monopoly, monopolistic competition, oligopoly, and monopolistic competition requires statistical comparison of market prices, cost, and profits of individual firms.\tIntersectoral anf intertemporal comparison: statistics helps in the comparision of different sectors of the economy and also helps in comparison of variables in two different time periods\tEconomic forcasting:\xa0by using statistical tools , methods, and techniques one can forcast e.g growth of the country in the coming fiscal year or rate of inflation in the coming month.\xa0

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