Some of the important functions of statistics are:
a) To present facts in a proper form: Statistical methods present general statements in a precise and definite form. For example, saying that in India 30,000 persons died in road accidents last year is more convincing than saying that many persons died in road accidents last year.
b) To simplify bulky and complex data: Statistical methods simplify bulky and complex data so that they could easily be understood. The raw data is often meaningless.
c) To facilitate comparison: The primary purpose of statistics is to facilitate comparison of different phenomena over time or space. For instance, comparison of the national income over time gives an idea of the development of the country over the years. This comparison can be made among the various nations also to know where a country stands viz. a viz. the other countries so far as the growth of the economy is concerned.
d) Helps in formulation of policies: Statistical methods are also useful in formulating various policies in social, economic, and business fields. The government for instance, uses enrolment data to know the progress of education in the various states. This helps in concentrating on the states where the enrolment is low. It also helps in changing the policy to achieve the targets.
e) To study relationship between different phenomena: Statistical measures such as correlation and regression are used to study relationships between variables. Such relationships are important for making decisions. For instance, one may find a relationship between the increase in demand of the number of diesel vehicles and pollution level.
f) To forecast future values: Some of the statistical techniques are used for forecasting future values of a variable. On the basis of weather data for a number of years, it is possible to predict the rainfall for a year.
g) To draw valid inferences: Statistical methods are also useful in drawing inferences regarding the characteristics of the universe (population) on the basis of sample data.