What is the Importance of Statistics in Economics?
By BYJU'S Exam Prep
Updated on: November 9th, 2023
Statistics in Economics is important because it is an indispensable tool that helps in understanding economic problems. It helps in determining the qualitative and quantitative facts of an economic problem. The system that deals with the collection, analysis, interpretation, and presentation of numerical data is called statistics.
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Importance of Statistics in Economics
After identifying the problem, it is easy to formulate some policies with the help of data to deal with it. It helps in presenting the economic facts in a precise and definite form. Statistical terms help in presenting economic facts in an accurate manner.
The branch of mathematics which is used in various subjects like accounting, economics, management, physics, finance, psychology, and sociology is called statistics. It helps in condensing the mass data into some numerical measures like mean, variance, etc. It helps to summarize the data and also helps to determine the following:
- The situation after the price of a commodity rises or falls.
- Effect of supply of goods on change in prices.
- Trends by utilizing visualization techniques for the presentation of data.
- The state of the economy by using Descriptive Statistics.
- The situation at the general price level when government expenditure rises.
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