State the importance of statistics ?

1.	State the importance of statistics ?
Answer» 1. Quantitative expression of economic problems: Statistics is an essential tool for an economistto understand the problems of an economy through quantitative data. Example: The problem of poverty in India can be quantitatively expressed as there is a substantial decline in poverty ratiosin India from 55% in 1973to 36% in 1993. 2. Inter-sectoral and inter-temporal comparisons: Thisquantitative data is further used to make inter sectoral comparison ,i.e. across different sectors of the economy and inter-temporal comparisons „i.e. over different plan periods of the rural and urban unemployment.3. Cause and effect relationship: Different sets of data are used to find the cause and effect relationship. This enables policy makers to formulate policy to solve the problem of an economy

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