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Write three sentences highlighting the importance of statistics in economics.

Answer» I will directly answer the above question without going here and there. Here are the five sentences( from which you can choose three points which you find good or average ) which highlights the importance of statistics in economics:-1.) It simplifies complex data into simple and easier way which helps us to understand the problems. Thus, it plays an important role in summarizing data.2.) It presents data in a definite form.3.) It helps in forecasting. We want to know if we invest 20000 rupees in mutual funds then what we will get in future as interest. Without statistics it is not possible to forecast.4.) It facilitates policy formulation.5.) It makes comparison of facts. Suppose we want to know if we earned better than the salary of previous month then we have to compare it and without statistics we can\'t do so.<br>According to YA-LUN-CHOU "Economics depends upon statistics to measure economic aggregates such as gross national product, consumption, savings, investments, expenditure and changes in the value of money. They also use statistical methods to verify economic theory and to test hypotheses.\xa0Statistics helps us in ascertaining their standard of living and taxable capacity. Statistics helps us in adjusting the supply according to demand. In the field of exchange we use statistics to study markets, laws of prices based on supply and demand. Statistics plays an important role in the measurement and distribution of national income. It is of a great help in the formulation of economic policies such as monetary policy etc.


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