IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 16, Issue 11.Ver. II (Nov. 2014), PP 43-49 www.iosrjournals.org www.iosrjournals.org 43 | Page The Application of Statistics to the Different Areas of Business Dr. Mcchester Odoh And Dr. Ihedigbo Chinedum E. Department Of Computer Science Michael Opara University Of Agriculture, Umudike, Abia State I. Introduction 1.1 Meaning of statistics The word ``statistics`` has various meanings, all of which are important to us. It can be used to denote numerical data themselves or aggregate obtained from the data e.g. Proportions, averages, that is why we talk of agriculture statistics, industrial statistics, business statistics etc. Oxford advance learner’s dictionary, 6 th edition defines statistics as a collection of information shown in numbers. E.g unemployment statistics, crime statistics etc. Statistics may be also used to designate course of study, which indicates the proper method of collecting, presenting, analyzing and interpretation of numerical data which vary (from time to time, place to place, person to person, material to material etc.) Based on the above definition of statistics, one could be able to decide logically in human rational that statistics does not draw its conclusion through assumption of incidents; but specifically statistics draws its conclusions systematically through the application of theorems tools, method and techniques used in collection and classification of data, analysis and interpretation of data, derivation and evaluation of the reliability of conclusion reached with the data. When information is recorded in it’s originally collected from whether it be counts or numerical measurements, is referred to as ``raw data``. For accuracy, a result is very close or not very far from accuracy, statistical method could be employed for the determination of some variable like prize rate, wages, income rate, the number of population, factories houses, retail shops, birth rates, death rate etc. it is the work of a statistician to professionally employ statistical method in his experiments to give an accurate result with respect to a given sample of a given variable. Statistics may also be used to designate a course of study, which indicates the proper method of collecting, presenting, analyzing and interpretation of numerical data which vary from time to time, place to place, person to person, material to material etc. Statistics afford us the knowledge to make future predications; they include the deductive and inductive statistics. Deductive statistics infers that the sample data are only analyzed; summarized and presented without making any inferences about the population while inductive statistics infers to statistical data that is obtained on basis of a sample, selected from a population of units of enquiry, they are used to make valid conclusion about the entire population. 1.2 Sources Of Data Data are classified as either primary or secondary data. Primary data are data that have been collected by the investigator himself or his agent directly from the units of enquiring. The data may or may not have been published. It is in its raw form. Secondary data are statistical data in its secondary form i.e. the investigator does not initiate himself but which he collects from other published records such as gazettes, books, journals, registers etc. 1.3 Method Of Data Collection Methods of data collection of data is distinguished recording to the source whether primary or secondary data. Data is collected via secondary method through the use of documentation. Primary data can be collected through direct observation, questionnaires, personal interviews. DIRECT OBSERVATION: This method of collection infers that the information is obtained from the units of enquiry by observing them in their natural environment. The participant observer obtains the required information directly by sharing in the activities of the community rather than relying on the reports of information or even on those of the units of enquiry. Direct observation becomes very necessary when the information is notable to supply the required information or is likely to give accurate answers. BY QUESTIONNAIRES: this refers to a careful formulated set of questions which may be sent to the respondents by post or arrived by field workers or enumerator for their response. PERSONAL INTERVIEWS; this is usually the method of collection of data in social surveys. Here a set of questions is prepared and administered on the respondents personally by interviews.