Top Importance of Statistics in Economics
1. Quantifies economic problems
In economics, we often speak about how a particular problem will affect the economy. Similarly, a specific event can also help the economy in certain ways.
2. Deducing theories
Economics usually means establishing a general or complex theory using various economic entities.
3. Forecasting and identifying patterns
Economists try to figure out the pattern from the underlying data. It helps in predicting future economic trends, including opportunities and challenges.
4. Making policies
Economists do the job of analysing national data to suggest policies to the governments. statistics are essential for the general welfare of the public.
The market equilibrium is balanced through demand and supply, i.e., products/services and customers.
5. Market Equilibrium
Being a quantitative study, statistics fail to measure qualitative entities like health, intelligence, loyalty, etc.
6. Qualitative analysis
7. Aggregate study
As statistics deals with bulk quantities, data needs to be aggregated into various types.
Statistics is all about obtaining data through comparison, which is impossible if the data is heterogeneous.
8. Homogenous Data
Statistical tools can only be used by statisticians, economists, and anyone who has acquired knowledge and understands statistical methods.
Major types of statistics bias