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This page provides complete NCERT exercise solutions for CBSE Class 11 Economics Chapter 1 — Introduction (Statistics for Economics). Go through the Key Concepts recap first, then solve the intext questions and chapter-end exercises step by step. Use these answers to verify your own solutions and strengthen your understanding of statistics in economics.
Key Concepts (Quick Recap)
- Statistics in plural sense: numerical data or numerical facts collected with a definite purpose
- Statistics in singular sense: the science of collecting, organising, presenting, analysing, and interpreting numerical data
- Scope of Statistics in Economics: helps in understanding economic problems, framing policies, evaluating economic plans, and making predictions
- Functions of Statistics: simplification of complex data, comparison, forecasting, formulation and testing of hypotheses, estimation
- Limitations of Statistics: ignores qualitative aspects, results are true on average only, can be misused, statistical laws are approximations, blind use can lead to wrong conclusions
- Types of Data — Quantitative: data expressed in numbers (income, production, height)
- Types of Data — Qualitative: data describing attributes (honesty, colour, nationality)
- Types of Data — Primary: data collected by the investigator for the first time
- Types of Data — Secondary: data already collected by someone else and available from published or unpublished sources
Intext Questions
Section 1.1 — Why Study Statistics?
Section 1.2 — Scope and Limitations
Chapter-End Exercise
Question 1
Which of the following is not a function of statistics?
(a) Simplification of complex facts (b) Comparison of facts (c) Forecasting future (d) All of the above are functions
Question 2
Which of the following is a limitation of statistics?
(a) It studies only quantitative data (b) It gives results that are true on average (c) It can be misused (d) All of the above
Question 3
Define Statistics in the singular sense.
Question 4
Define Statistics in the plural sense.
Question 5
What are the functions of Statistics?
1. Simplification of complex data: Large masses of data are condensed into significant figures using averages, percentages, and graphs. 2. Comparison: Statistical tools like ratios and coefficients enable comparison of data sets. 3. Forecasting: Statistical methods like time series analysis help predict future trends. 4. Formulation and testing of hypotheses: Statistics helps frame and verify economic hypotheses. 5. Estimation: Unknown population values are estimated using sample statistics. 6. Policy-making: Governments use statistical data to formulate economic policies.
Question 6
What are the limitations of Statistics?
1. Studies only quantitative data: Statistics cannot deal with qualitative attributes like honesty, intelligence, or loyalty. 2. Results are true on average: Statistical conclusions are not universally true; they hold on average. 3. Can be misused: Data can be presented selectively to support a false claim. 4. Statistical laws are approximate: Unlike laws in physics, statistical laws are not exact. 5. Blind use is dangerous: Applying statistical methods without understanding the context leads to incorrect conclusions. 6. Requires homogeneity: Statistical tools give meaningful results only when data is homogeneous.
Question 7
Distinguish between quantitative and qualitative data.
| Basis | Quantitative Data | Qualitative Data |
|---|---|---|
| Expression | Expressed in numbers | Expressed in attributes |
| Examples | Income, height, production | Honesty, colour, nationality |
| Measurability | Can be measured numerically | Cannot be measured numerically |
| Statistical analysis | Can be analysed using statistical tools | Cannot be directly analysed statistically |
Question 8
Distinguish between primary and secondary data.
| Basis | Primary Data | Secondary Data |
|---|---|---|
| Collection | Collected by investigator first-hand | Already collected by someone else |
| Originality | Original in character | Not original |
| Accuracy | More accurate and reliable | Less reliable as it passes through hands |
| Cost and time | More expensive and time-consuming | Less expensive and time-saving |
| Examples | Census survey, questionnaire | Published reports, government records |
Question 9
What do you mean by distrust of statistics?
1. Statistics can be manipulated to support any argument. 2. Figures may be presented without context. 3. Biased samples can lead to misleading conclusions. 4. Wrong methods may be deliberately applied.
However, the distrust is not of the science of statistics but of its users. Statistics itself is a neutral tool; it is the dishonest user who misrepresents facts.
Question 10
Explain the scope of Statistics in Economics.
1. Understanding economic problems: Statistical data helps identify and understand economic issues like poverty, unemployment, and inflation. 2. Formulation of economic policies: Government uses data on national income, prices, production to frame fiscal and monetary policies. 3. Economic planning: Statistical data is the foundation of economic planning and development programmes. 4. Evaluation of policies: The success or failure of economic policies is judged using statistical tools. 5. Economic research: Economists use statistical methods to test theories and establish relationships between economic variables. 6. Business decision-making: Firms use statistical data for demand analysis, market research, and quality control.
Question 11
"Statistics is the science of averages." Comment.
Question 12
"Statistics can prove anything." Critically examine this statement.
Question 13
State whether the following data is primary or secondary:
(a) Data collected by a researcher through a questionnaire (b) Data obtained from Economic Survey of India (c) Data collected by a company from its own records (d) Data published in a research journal
(a) Primary data — collected first-hand by the researcher. (b) Secondary data — already published by the Government of India. (c) Primary data — the company collected it from its own records for its own purpose. (d) Secondary data — already published by someone else in a journal.
Question 14
Give two examples each of quantitative and qualitative data.
Quantitative data: (1) Monthly income of a family = Rs 25,000; (2) Rice production in a year = 100 million tonnes.
Qualitative data: (1) Honesty of an employee; (2) Colour of a person's eyes.
Question 15
Write a short note on the importance of Statistics in economic planning.
Internal Links
- [Chapter 1 Guide — Introduction](/school/cbse/class/11/economics/cbse-introduction-statistics)
- [All Class 11 Economics Solutions](/school/cbse/class/11/economics/solutions)
- [Class 11 Economics Subject Guide](/school/cbse/class/11/economics)