Presently, we have started using Statistics to analyse important economic problems such as rising prices, growing population, unemployment, poverty etc., to find measures that can solve such problems.
Also it helps to evaluate the impact of such policies in solving the economic problems.
For example, it can be analysed easily economic planner has to decide in 2005 and can predict the economy level in 2010.
In other words, one must know how much could be consumption in 2010 in order to decide the production plan of the economy for 2010.
In this situation, one might make subjective judgement based on the guess about consumption in 2010.
Otherwise, we can use statistical tools to predict consumption in 2010. That could be based on the data of using statistical techniques whether the policy of family planning is effective in checking the problem of ever-growing population. Thus in economic policies, Statistics plays a vital role in decision making.
For example, in the present time of rising global wheat prices, it might be necessary to decide how much wheat India should import in 2010.
The decision to import would depend on the expected domestic production of wheat and the likely demand for wheat in 2010.
But, we cannot determine the expected domestic production of wheat and the likely demand for wheat would be, without the use of statistics.
Thus the decision to import wheat cannot be made unless we know the actual requirement of wheat.
Thus, through statistics only this vital information that help make the decision to import wheat.
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