This law forms the basis of the theory of probability in statistics. According to this theory, if you take a large random sample from a population, then it is fairly representative of the population.
The Law of Inertia of Large Numbers
This law is the corollary of the law of statistical regularity. According to this law, a larger sized sample produces more accurate results. This is because large numbers have more stability, consistency, and steadiness as compared to small numbers.
Limitations of Statistics
Despite its immense use, Statistics has many limitations. These are as follows:
Deals in Quantitative Data
Statistics deals only with quantitative data and not the qualitative and descriptive facts like efficiency, intelligence, honesty, blindness, etc.
Studies Groups not Individuals
Statistics does not deal with individuals but with groups. This is one of the biggest limitations of statistics. To give you an example, the income of an individual or profit of a particular business unit is not statistics since those figures are unrelated and incomparable.
On the other hand, the aggregate of figures relating to prices and consumption of various commodities and over varying time periods are statistics.
Statistics is an inexact science
Statistical laws are not exact. In fact, the results are true only on averages. Also, they are valid only under a certain set of assumptions. Therefore, the science of statistics is less exact than natural sciences like physics, chemistry, etc.
Statistics deal with figures which are innocent in themselves and can be easily manipulated or distorted by people for their selfish motives. Therefore, it is a dangerous tool in the hands of a non-expert.
It is hence important that the user of the statistical methods has sound knowledge of the subject along with the self-control of an artist.