What is the importance of statistics

A number of economics problems can easily be understood by the use of statistics. It helps in formulation of economic policies e.g., basic economic activities like production, consumption etc. use statistics. The importance of statistics in various parts of economics as follows:

1. Statistics in consumption: To obtain the knowledge of how different groups of people spend their income on consumption. The data of consumption are useful and helpful in planning their budget and in improving their standards of living.
2. Statistics in production: The comparative study of the production process is done with the help of statistics. The statistics in production is very useful and helpful in the adjustment of demand and supply and for determining the quantity of production of the commodity.
3. Statistic in distribution: Statistical methods are used in solving the problem of distribution of national income among various factor of production i.e, land, labour, capital and entrepreneur.