What is the importance of statistics

1.	What is the importance of statistics
Answer» A number of economics problems can easily be understood by the use of statistics. It helps in formulation of economic policies e.g., basic economic activities like production, consumption etc. use statistics. The importance of statistics in various parts of economics as follows:\tStatistics in consumption: To obtain the knowledge of how different groups of people spend their income on consumption. The data of consumption are useful and helpful in planning their budget and in improving\xa0their standards of living.\tStatistics in production: The comparative study of the production process is\xa0done with the help of statistics. The statistics in\xa0production is\xa0very useful and helpful in the\xa0adjustment of demand and supply and for determining the quantity of production of the commodity.\tStatistic in distribution: Statistical methods are used in solving the problem of distribution of national income among various factor of production i.e, land, labour, capital and entrepreneur.

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