Detailed notes
Economics studies choices under scarcity. Statistics provides methods to collect, organise, present and interpret economic information. A statistic without source, definitions and context can mislead.
Worked interpretation
A district reports average monthly household spending of ₹24,000. Before comparing it with another district, check sample size, survey month, household size, price level and whether the average is mean or median. Statistics describes the measured group; it does not by itself explain why spending differs.
CBSE-style practice
- Explain one use and one limitation of statistics in an economic decision.
- Draw a labelled graph or table where it clarifies your reasoning.
- State one limitation or assumption.
Quick revision
Define the term precisely, show formula substitutions when relevant, and distinguish a change in the variable from a change in its determinants.