Department of Economics

GRADE 11 ( Girls Shift)

COLLECTION OF DATA

There are two types of data:

1. Primary Data
2. Secondary Data

Difference between primary and secondary data

PRIMARY DATA SECONDARY DATA

• It is original data because they are • It always exists and therefore it is
collected by the investigator from not original.
the source of their origin.
• It is always related to a specific • It has already been collected for
objective of the investigator. This some other purpose. Therefore
data therefore does not needany thedata needs to be adjusted for
adjustment for the suitable study. the concerned study.
• It costlier in terms of time, money • It is simply collected from the
and efforts because it is collected published or unpublished reports.
for the first time. Therefore it is less expressive.
• Therefore a particular set of data • The same set of data when used by
when collected by the investigator some other investigator for his own
for a specific purpose from the purpose would be known as
source of origin is called primary secondary data
data

METHOD OF COLLECTING PRIMARY DATA

1. DIRECT PERSONAL INVESTIGATION:

It is the method by which data is personally collected by the investigator from the
informants. There is a direct relationship with the person from whom the information is
obtained. Such method is suitable when the field of investigation is limited or when
original data is required, information is kept secret, accuracy of data is of great
importance and where direct contact with the informant is required.
 MERITS:
• Originality: The data collected is original and first hand
• Accuracy and Reliability: The data collected is accurate and reliable as it is collected by
the investigator
• Related Information: The investigator may obtain other related information as well.
• Uniformity and Elasticity: The data collected is uniform and necessary adjustments can
be laid in the setoff questions by the investigator.

DEMERITS:

• Difficult to cover wide areas: It is difficult when the area of study is very wide
• Personal Bias: The investigator may be biased. As a result the data might lose its
credibility
• Costly: This method is expensive in terms of time, money and efforts.

2. INDIRCET ORAL INVESTIGATION:

It is the method by which information is obtained not from the person regarding whom
the information is needed rather it is collected orally from other people who are
expected to possess necessary information. These people are known as witnesses.
EXAMPLE: The data on the economic conditions of the workers may be collected from
their employees rather than the workers themselves.
The method is suitable when the field of investigation is relatively large. It is not possible
to have direct contact with the informant, the informant is ignorant and illiterate, and
the investigation is not complex that only experts can give information.
MERITS:
• Wide Coverage: This method can be applied even when the field of investigation is very
wide.
• Simple and Less Expensive: This is a relatively simple and less expensive method
compared to direct personal investigations.
• Expert Opinion: The information is more reliable as it obtained for experts.
• Free from Bias: This method is relatively free from personal bias.
DEMERITS:
• Less Accurate: The data collected is relatively less accurate because the information is
obtained from persons other than the concerned informants.
• Biased: There is a possibility that the witness maybe biased.
• Doubtful Conclusions: The methods will lead to doubtful conclusions due to carelessness
of the witness.
 Differences between Direct personal investigation and Indirect oral investigation.

DIRECT PERSONAL INDIRECT PERSONAL INVESTIGATION

INVESTIGATION
• The investigation establishes direct • It is obtained by contacting with
contact with the informant. other than those about whom
information is sought out.
• The field of investigation is small. • The field of investigation is
relatively large.
• Investigations must be well versed • No such requirement is necessary
in the language and cultural habits for the investigation.
of the informants.
• More costly • Less costly

3. QUESTIONNAIRE METHOD:

There are two ways of collecting information on basis of questionnaire.

• Mailing Method: Under this method questionnaires are mailed to the informants. A
letter is attached with it giving the purpose of enquiry. It is also assured that the
information would be kept secret. The informant notes the answers against the
questions and returns the completed questionnaire to the investigator. It is suitable
when the area of study is wide and the informants are educated.

MERITS:

• Economical: It saves time, money, and efforts involved.

• Original: This method is original and therefore fairly reliable.
• Wild Coverage: This method involves wide coverage of the area of study

DEMERITS:

• Lack of Interest: The informants do not take an interest in the questionnaire and fail to
return it.
• Lack of Flexibility: When questions are not properly replied, these cannot be changed
to obtain the required information.
• Limited Use: this method can be used only if the informant is educated.
• Biased and Less Accurate: If the informants are biased and are not able to answer some
difficult questions, the result of the investigation will not be accurate.
 • Enumerator Method: Under this method a questionnaire is prepared according to the
purpose of enquiry. The enumerator himself approaches the informant with the
questionnaire. Those which are filled by the enumerators themselves by putting
questions are called schedules. Enumerators are those persons who help the
investigators in collecting the data. The enumerators are given training to fill the
schedules and put the questions intelligently to obtain accurate information.

MERITS:

• Wide Coverage: It has a wide coverage in terms of the area involved.

• Accuracy: Because the investigations are done by specialized enumerator there is fair
degree of accuracy in the results.
• Personal Contact: There is personal contact with the informant in this method.
• Completeness: The schedules and questionnaires are complete because they are filled in
by the enumerators themselves.

DEMERITS:

• Expensive: It is an expensive method because of the involvement of trained

investigators
• Availability of Enumerators: If the enumerators are not competent then there would be
less accuracy of information.
• Time Consuming: Enumerators may have to be trained for particular investigations
which could be time consuming.
• Not Suitable for Private Investigation: Since it is an expensive method it is only used by
government institutions
• Partial or Biased: If the enumerators are biased then the data will not be accurate

QUALITIES OF A GOOD QUESTIONNAIRE:

➢ Limited number of questions: Questions should be related to the purpose of enquiry

and should be as limited as possible.
➢ Simplicity: Language of the questions should be simple, lucid and clear.
➢ Proper Order of questions: Questions must be placed in a proper order.
➢ No Undesirable Questions:Undesirable questions or personal questions must be
avoided which would offend the informant.
➢ Non-controversial: No controversial questions should be asked in the questionnaire.
➢ Calculations: Questions involving calculations by the respondents must be avoided.
 ➢ Pre-testing or Pilot Survey: Some questions should be asked on trial bases. If their
answers involve some differently, they should be farmed again. Such testing is called
pilot survey.
➢ Instructions: A questionnaire must show clear instructions for filling in the form.
➢ Request for Return:Request should be made to the respondents to return the
questionnaire completed in all respects. The informant must be assured that the
information given by him will be treated as confidential.

4. TELEPHONE INTERVIEW:

In a telephone interview, the interviewer asks questions over the telephone. It is suitable in
cases where the respondent is reluctant to answer certain questions in personal interviews.

MERIT:

• It is cheaper than personal interviews.

• It can be conducted in a shorter time

DEMERIT:

• Not all people have access to telephones.

• It also obstructs visual reaction of the respondent which becomes helpful in obtaining
information on sensitive issues.

SOURCES OF COLLECTING SECONDARY DATA

There are two main sources:

I. PUBLISHED SOURCES:
• Government Publications.
• Semi-Government Publications.
• Reports of Committees and Commissions.
• Publication of Trade Association
• Publication of Research Institution.
• Journals and Papers.
• Publication of Research Scholars.
• International Publications.
II. UNPUBLISHED SOURCES: There are some unpublished secondary data as well. These
data are collected by the government organization and others generally for their self-
use and office records. There data are not published. There unpublished numerical
information may be however used as secondary data.
 5. CENSUS AND SAMPLE METHOD:

CENSUS METHOD

It is that method in which data are collected, covering every item of the universe or
population relating to problems under investigation. This method is suitable if:
• There is small size of population.
• Widely - item in population and which require intensive examination of different items.
• There is high degree of accuracy and reliability involved.

MERIT:

• Reliable and Accurate: Results based on census method are accurate and highly
reliable. This is because each and every item of the population is studied.
• Less Biased: The results are less biased because the investigator does not result the
sample items.
• Extensive Information: Since all items of the universe are examined the information is
exhausted and can study the diverse characteristics of the universe.
• Study of Complex investigation: When items of the universe are of complex nature, it is
necessary to study each item. Only census method can produce the desired results.
• Indirect Investigation: Census method can be successfully used and in indirect
investigations relating to unemployment, poverty, corruption etc.

DEMERIT:

• Costly: This method is very costly and therefore is generally not used for ordinary
investigations.
• Large Man Power: This method requires a lot of man power, that is, --.
• Unsuitable for Large Investigation: If the universe includes large number of items
then it may not be possible to cover each and every item.

SAMPLE METHOD:

It is that method in which data is collected about the sample that is a group of items taken
from the population for examination and conclusions are drawn on their basis. At is widely
used in one day to day life. This method is suitable when:

• Size of population is very large.

• Very high degree of accuracy is not required.
• Intensive examination of different item is not required.
• When different unit of the universe are broadly similar to each other.
MERIT:

• Economical: Since only some units of the population are studied this method is
economical.
• Time Saving: The power of investigation is time saving because only limited numbers of
items are investigated.
• Identification of Error: Because only a limited number of items are covered, errors can
be easily identified.
• Large Investigation: This method is more suitable in – where investigation is on a big
scale.
• Administrative convenience: Thereis administrative convenience in handling limited
number of items. More capable and efficient investigators can be appointed.
• More Scientific: This method is more scientific because the sample data can be
conveniently investigated from various angles.

DEMERIT:

• Partial: The results of the investigation may be biased, if there is bias in the section of
sample.
• Wrong Conclusion: if the selected sample does not represent the characteristics of the
universe, the study may end up with among conclusions.
• Difficulty in Selecting a Sample: It is a difficult task to select a sample which could
represent the entire universe.
• Difficulty in Framing a Sample: Sometimes the universe may be so derived that it
becomes difficult to frame a sample.
• Specialized Knowledge: One must have technical knowledge of showing a
representative sample from the universe. People who know the techniques of sampling
are not easily available.

ESSENTIALS OR QUALITIES OF A GOOD SAMPLE:

• Representative: A sample must represent all the characteristics of the universe.

• Independent: All sample of the universe must be independent of each other.
• Homogeneity: All the samples selected must be homogenous.
• Adequacy: The number of items in a sample should be fairly adequate so that some
reliable conclusions are drawn.
 POINT OF DIFFERENCE CENSUS METHOD SAMPLE METHOD
Information collected from Only some items which
1) COVERAGE all items in the population. represent the - are covered
for investigation.
2) SUITBILITY Suitable when area of Suitable when area of
investigation is small. investigation is large.
There is a greater degree of Less accuracy and reliability
3) ACCURACY accuracy and reliability. because it studies only a few
items of the population.
4) COST Cost of investigation is Cost of investigation is less.
more.
5) TIME More time consuming. Less time consuming.
Suitable when the items of Suitable when items in
6) NATURE OF ITEMS population have diverse population are
characteristics. homogeneous.
7) VERIFICATION It is generally not possible. It can be easily verified.

TYPE OF SAMPLING

RANDOM SAMPLING:

It is that method of sampling in which each and every item of the universe has equal chance
of being selected in the sample.

Random sampling can be done in two ways:

(i) LOTTERY METHOD:

In this method paper slips are made from each item of the universe. These slips are shuffled
in a box and then impartially some of the slips are drawn to form the sample of the
universe.

(ii) TABLES OF RANDOM NUMBER:

Some statisticians have prepared a set of tables called tables of Random number. A sample
is framed in regard to these tables. Out of all the tables, Tippets table is most widely used.
All items of the universe are the first arranged in order. Then using Tippets table the
required number of items are selected for the sample.

NON-RANDOM SAMPLING:
In non-random sampling all units of the population do not have equal chance of being
selected. They are selected mainly on the basis of judgment or convenience of the
investigator purpose or quota.

STRATIFIED/ MIXED SAMPLING:

This method of sampling is generally adapted where population consists of different groups
with different characteristics. Under this method the whole universe is divided into strata or
layers of homogenous groups. After that a sample is taken out from each of the strata at
random. The strata may either be proportional or disproportional depending upon the size
of each stratum.

EXAMPLE: Suppose there are 50 students in class XI. Out of them, 30 have studied
Mathematics and 20 have studied Home Science in their class X. Thus the population of 50
students gets divided into 2 strata consisting of 30 and 20 students respectively. From each
of these strata, items could be selected proportionately such that the sample represents the
characteristics of the entire population.

*QUOTA SAMPLING:

In this method, the population is divided into different groups of classes according to
different characteristics of the population. Some percentage of different groups in total
production is fixed. Further, some quota of the items to be selected as sample items is fixed
for each group. The investigator selects the fixed number of items from each group to frame
a sample

SAMPLING AND NON-SAMPLING ERRORS:

SAMPLING ERROR:

Sampling errors are related to size and nature of sample related to study. Due to the very
small size of sample the estimated value may be different from the actual value. The error
caused is called sampling error.

NON-SAMPLING ERROR:

Non-sampling errors are errors related to the collection of data. This could be error of
measurement, error of non-response, error of misinterpretation and calculation, error of
sampling biased.