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Chapter 2 - Collection of data (Statistics - Economics)

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Chapter 2 - Collection of data (Statistics - Economics)

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Chapter 2 – Collection of data

What is statistics?

Statistics is the ‘study’ of collecting, analyzing, organizing and


interpreting the data to understand patterns, trends or make decisions.

Why is collection of data important?

Collection of data is important in statistics because it gives us information


required to understand patterns, trends or make decisions .

Collection of data

Primary source
Secondary source
Primary source of data means Secondary source of data means
collection of the data from its origin. collection of the data from a source
It offers firsthand quantitative that already possess the required
information. information.

Primary data are original Secondary data is not original

The data obtained is related to the The data obtained is for some other
objective of the study, it does not study, and requires it to be adjusted
require to be adjusted. to suit the new obj.
Requires more time taking and Requires less time and effort and it’s
costlier. less expensive.

Methods /modes of collection of primary data:

1) Personal Interviews:
a) Direct personal investigation
b) Indirect oral investigations
c) Information from the local sources
2) Information through Questionnaires/schedules:
a) Mailing and surveys
b) Enumerator’s method

Personal Interviews:

a) Direct personal investigations: Refers to the method when the


investigator personally collects data from individuals involved in the
subject. Ex: Directly contacting workers in a company to know the
economic conditions in the field of study.
Merits: -
i. Data has high level of originality.
ii. Data is accurate – personally collected by the investigator.
iii. Data is reliable – collected by the investigator
iv. Can easily obtain related information – direct contact with the
people involved.
v. Elastic - the investigator can make changes according to the
information.

Demerits: -

i. Requires more time and effort and money.


ii. Unable to cover wide range for collection of data.
iii. Personal bias – data loses its credibility.

b) Indirect oral investigations: Refers to the kind of investigation of


when data is obtained from people(witness) who may not directly be
involved but is knowledgeable about the topic. Ex: Investigator asking
the teacher about ‘students’ behavior’ instead of directly asking the
students.
Merits: -
i. Wide range of coverage
ii. Free from personal bias – investigator’s bias
iii. Less expensive, time taking, and requires less effort
iv. Information is reliable - collected from an expert who knows
about the subject matter.

Demerits: -

i. Less accuracy – the information collected is from people who are


not involved in the subject matter.
ii. Bias – from the information provider (not personal)
iii. May lead to doubtful conclusion due to carelessness of the
witness (person the data is collected from).

c) Information from local sources or correspondents: Refers to the


method where the investigator appoints a person or correspondent to
acquire information regarding the subject and furnish/share it with the
investigator. Ex: news agency appoints reporters.
Merits: -
i. This method saves time, money and effort – is economical
ii. Wide coverage
iii. Suitable for special purpose investigation.
iv. Continuity is enforceable – due to correspondent keeps on giving
information.

Demerits: -

i. Loss of originality – the data is not personally collected


ii. Bias from the correspondents
iii. Less accurate
iv. Lack of uniformity – the data being collected from numerous
sources

Information through questionnaires/schedules:

a) Mailing/surveys: This method is when the investigator mails a bunch of


questionnaires to the respondents through mail (with the reason of
enquiry). The respondent then is expected to reply with answers (the
answers are treated with confidentiality).
Merits: -
i. It is economical
ii. Originality of data is preserved – investigator directly asks
questions to people involved in the subject matter.
iii. Wide coverage of the area of study.

Demerits: -

i. Lack of interest – the respondents may not take the mail


seriously due to lack of interest.
ii. Lack of flexibility – when questions are not properly answered, it
cannot be changed to give proper information
iii. Bias – from the respondents
iv. Less accurate – some questions may be difficult or viewed and
answered different by the respondents.
v. Limited use – can only be responded by people who are
educated enough.

b) Enumerator’s Method: is the method when the investigator appoints


trained personnel to personally visit people, propose questionnaires,
record their respond based on the subject. and furnish this information
with the investigator. Ex: census workers
Merits: -
i. Wide coverage of study.
ii. Ensures accuracy – enumerators are trained specialist gathering
information
iii. Personal contact – there is personal contact within the
respondent ensuring a direct and better answer.
iv. Unbiased – enumerators does not require the information alone
hence they remain unbiased when collecting data.
v. Completeness - data collected by enumerators are filled by
themselves. Hence it becomes reliable to use.

Demerits: -

i. Expensive – involvement of trained specialists.


ii. Availability of enumerators – it is important to choose a
competent and good one, but they may not be available.
iii. Chances of biased responses from the enumerator
iv. Not suitable for private investigation – expensive
v. Time consuming – enumeration may require specialized training
for some investigation.

Qualities of a good questionnaire

 Proper instructions regarding filling of the questionnaire should be


presented to the respondent.
 There should be limited number of questions and should be related
to the subject matter.
 The usage of simple language in the questionnaires should be
incorporated.
 Controversial questions should be avoided.
 Personal Questions should be avoided.
 Calculation based questions should be avoided. Investigator
himself should do the calculations.

Types of questions in a questionnaire:

(1)Yes or no, right or wrong, good or bad – simple alternative questions.


Ex: Q) Would you like to be rich?

Yes No
(2) Multiple choice type
Ex: Which is your favorite series?
a. Dark
b. Harry Potter
c. Judge from hell
d. Monster

(3)Specific Information questions:


Ex: What is your type in men?
Ans: ……………………………………………………………………
(4)Open end question:
Ex: What do you think of the new generation/Gen alpha
Ans: …………………………………………………………………..
………………………………………………………………….

d) Telephonic Interviews: is when the investigator obtains information


via telephone with the respondent.
Merits: -
i. Originality
ii. Accuracy
iii. Reliability

Demerits: -

i. Biased
ii. Limited access – not everyone owns a telephone.

Collection of Secondary data:


1) Published source
2) Unpublished Source

1) Published source:
(i) Government publications: the government in India publishes
information and statistics on various topics as a routine. This
information are reliable. Some publications are: Agricultural
statistics, poverty rate, GDP etc.
(ii) Semi-Gov. Publications: Government bodies like municipalities
and councils publish reports relating to education, health, birth
and death rates.
(iii) Reports by committees and commissions: They are also
appointed by the government and provides statistics on finance
commission, monopolies commission, planning commission etc.
(iv) International publication: International organizations such as
UNO, UNHRC, IMF and World Bank has provided numerous
statistics on the topics concerned.
(v) Journal and papers: Many newspaper companies such as
‘economics times’ and ‘commerce facts for you’ has provided
countless statistics in their report.
(vi) Research Institutions Scholars: Some individuals scholars
also publish their research containing some useful statistics.

2) Unpublished Sources:
These data are collected by the government and others, it is generally
used for self-use or office record. It is unpublished; however, it can be
used as secondary data.

Precautions in the use of secondary data:

1) When collecting data, one should make sure the data presented by the
individual/group is an expert or is knowledgeable in that field of
study.
2) Data acquired should be based on the matter of study/objective
of the investigation.
3) The method adopted for collection of data should match the
nature of investigation.
4) Make sure the data collected is of relevant time period. Ex: data
collected during war time may not be useful in peaceful times.
5) The investigator should make sure the unit of measurement is
accurate while acquiring data and also during presentation of this
data
6) Accuracy, there should be a certain level of accuracy in acquiring
wanted information if it lacks in any, the information as a whole should
be discarded.

Two important sources of Secondary data:


1) Census India: Gives information on various topics like size, sex
composition, density and literacy rate of the population. It is the
statistics published by the registrar general and census commission.
2) The NSSO (National Sample Survey Organization): is an
organization in India that conducts large-scale surveys to collect
data on various aspects of the economy, such as employment,
income, consumption, and health.

Schedule: is a set of questions asked by the enumerator, and the


enumerator itself fills and records the answers.

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