If we consider the branches of statistics, there are two branches in it. They are

**Descriptive statistics****Inferential statistics**

__Descriptive-statistics:__

It organizes raw data into meaningful information.An house hold articles manufacturing company would like to know what people feel about their products. For that purpose, the company forms a team of people and tries to collect information from the public. The team of people formed by the company is trying to collect data from the public directly. The data which is being collected directly from the public will always not be meaning full. Hence, the data which is being collected directly from the public has to be converted in to meaningful information. This is the work being done in this particular branch “ descriptive-statistics". That is,it focuses on collecting, summarizing and presenting set of data.

**For example, **Industrial statistics, population statistics, trade statistics etc.,

*Interpretation:* We are familiar with descriptive statistics, because many examples arise in everyday life. Descriptive statistics forms a basis for analysis and discussion in such diverse fields as security trading, the social sciences, professional sports so on.

We are going to see the next one of the branches of statistics.

__Inferential-statistics:__

It analyses sample data to draw conclusion about population. It analyses sample data to draw conclusion about population. Marketing research team of a company wants to know how far the people need a particular product manufactured by the company. There is one hundred thousand population in a particular city. It is bit difficult to go and ask all one hundred thousand people, due to time consumption and other factors. Hence, it takes a sample of 1000 people to draw conclusion for the whole population. That is making general statement from the study of particular cases or any treatment of data, which leads to prediction or inference concerning a larger group of data.

**For example,** we want to have an idea about percentage of illiterates in a country. We take a sample from a population and the proportion of illiterates in the sample. That sample with the help of probability enables us to find the proportion to the original population.

*Interpretation;* When we use inferential statistics, we start with a hypothesis, and see whether the data is consistent with that hypothesis.

** How to distinguish the branches of statistics (descriptive and inferential)**

__Descriptive statistics__

- Descriptive statistics is used to describe and summarize the given data.
- It is not used to draw conclusion about the population.

__Inferential statistics__

- Based on a sample inferential statistics used to draw conclusion about a population.
- Inferential statistics is used to estimate the parameters of the population.

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