Question
Explain how statistics is helpful in the formulation of economic planning.
Solution
It is the most important tool in the economic planning. Every phase in the economic planning drawing a plan, execution and review is based on statistics.
By economic planning we mean taking of major decisions in advances i.e., what to
produce, how to produce and for whom to produce in accordance with a plan. It implies a conscious and deliberate action to attain certain predetermined economic aims.
