Question
What is the importance of statistics in economics ?
Solution
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.
Statistics 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.
