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IGNOU MBA MS - 08 Solved Assignments July 2011

Course Code : MS - 8

Course Title : Quantitative Analysis for Managerial Applications

Assignment Code : MS-8/SEM - II /2011

Coverage : All Blocks

Note: Answer all the questions and submit this assignment on or before 31st October 2011, to the coordinator of your study center.

1. ‘Statistics can prove anything’

‘Figures cannot lie’

Comment on the above two statements, indicating reasons for the existence of such divergent views regarding the nature and functions of statistics.

Answer:

“Statistics can prove anything” is the statement of distrust:

Brief Note on Distrust on Statistics

It is a general belief that “statistics can prove anything.” This statement is partly true & false. It is false because more statistics should not be taken for granted without proper verification. It is true because statistics is often used by unscrupulous people to achieve their personal ends. This results in loss of faith or confidence on statistics or in causing distrust of statistics.

Distrust of statistics literally means lack of trust in statistical data, statistical analysis and the conclusion derived from it. We often hear statements like.

i) Statistics is an unreliable science.

ii) Statistics are lies of the first order.

iii) There are three types of lies-lies, demand lies & statistics.

iv) Figures do not lie, liars figures

These are expressions of distrust in statistics these views of statistics from the misuse of statistics by interested parties. Publicity, advertisers of various products, Governments and other organizations are trying to promote their sectional interest using statistics and statistical methods. This causes distrust of statistics.

Some of the important reasons of distrust in statistics are the following:

a) Facts based in figures are more convincing. But these figures can be manipulated according to one’s wishes. This misguides public causing...