# Kinds or Branches of Statistics

Statistics may be divided into two main branches:
(1) Descriptive Statistics (2) Inferential Statistics

(1) Descriptive Statistics

Descriptive statistics deals with the collection of data, its presentation in various forms, such as tables, graphs and diagrams and finding averages and other measures which would describe the data.

For example: Industrial statistics, population statistics, trade statistics, etc. Businessmen make use of descriptive statistics in presenting their annual reports, final accounts, and bank statements.

(2) Inferential Statistics

Inferential statistics deals with techniques used for the analysis of data, making estimates and drawing conclusions from limited information obtained through sampling and testing the reliability of the estimates.

For example: Suppose we want to have an idea about the percentage of the illiterate population of our country. We take a sample from the population and find the proportion of illiterate individuals in the sample. With the help of probability, this sample proportion enables us to make some inferences about the population proportion. This study belongs to inferential statistics.