Classification is the process of arranging the available facts into homogeneous groups, classes or sub-classes according to resemblances and similarities.

According to Secrist : “Classification is the process of arranging data into sequences and groups according to their common characteristics, or separating them into different but related parts.”

According to Spur and Smith : “The process of presenting data by arranging it on the basis of similar properties, in classes or divisions, is called classification.”

In this way, classification is an activity in which data are divided into homogeneous classes, sub-classes, on basis of a property or quality.

Objectives of Classification:

Following are the objectives of classification:

i. To make statistical data simple and brief : The main objective of classification is to eliminate the complexity of collected dataitems (figures) and given them a simple and concise form so that they can be understood easily. 

For example: the salary figures of 1000 workers in the factory were collected. It is not possible to draw any conclusion from them in the same form, but if they are classified, pre-grouped and tabulated, they can be easily understood.

 iii. Helpful in Comparison : One purpose of classification is to make the facts comparable. For example, if the examination results of the intermediate students (commerce) of 2 schools are to be compared, then this can be done with the help of classification: Inter (Commerce) Exam Results.

v. To present the basis for tabulation : It is impossible to tabulate unorganized and unrefined data-items without classifying them, moreover, without it statistical analysis is impractical. Thus, the process of classification presents a basis for tabulation.

vi. Lending a Scientific basis : Another objective is to lend statistical data, a scientific basis. This makes data more credible.

vii. Utility : Classification increases the utility of statistical data by lending them uniformity.