Statistics for Economics Class 11 Notes Chapter 2

Collection of Data

Sources of Data There are two sources of data

Primary Source of Data It implies collection of data from its source of origin.
Secondary Source of Data It implies collection of data from some agency or
institution which already happens to have collected the data through statistical
survey.

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Types of Data There are two types of data

Primary Data Data collected by the investigator for his own purpose for the first
time, from beginning to end are called primary data.
Secondary Data These data have already been collected by somebody else, these are
available in the form of published or unpublished report.

Principal Differences between Primary and Secondary Data

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Primary data are original and secondary data are already in existence and therefore,
are not original.
Primary data do not need any adjustment, secondary data need to be adjustment to
suit the objective of study in hand.
Primary data are expensive and secondary data are less expensive.

Statistical Methods of Data Collection

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(i) Direct Personal Investigation
It is the method by which data are personally collected by the investigator from the
information. Merits and demerits of this method are follows.
(a) Merits
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Originality
Reliability
Uniformity
Accuracy
Related information
Elastic

(b) Demerits

Difficult to cover wide areas

Costly
Personal bias
Limited coverage

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(ii) Indirect Oral Investigation
It is the method by which information is obtained not from the persons regarding whom
the information is needed. It is collected orally from other persons who are expected to
possess the necessary information. Merits and demerits of this method are given below
(a) Merits

Wide coverage
Expert opinion
Simple
Less expensive
Free from bias

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(b) Demerits

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Less accurate
Doubtful conclusions
Biased

(iii) Information from Local Sources or Correspondents

Under this method, the investigator appoints local persons or correspondents at different
places. Merits and demerits of this method are given below
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(a) Merits

Economical
Wide coverage
Continuity
Suitable for special purpose

(b) Demerits
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Loss of originality
Lack of uniformity
Personal bias
Less accurate
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Delay in collection

(iv) Information Through Questionnaries and Schedules

There are two ways of collecting information on the basis of questionnaire
(a) Mailing Method Under this method questionnaires are mailed to the informants. The
method is most suited when

The area of the study is very wide.

The informants are educated.

(b) Enumerator’s Methods Under this Method enumerator himself fills the schedules after
seeking information from the informants. This method is mostly used when

field of investigation is large.

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 the investigation need specialised and skilled investigation.
the investigators are well versed in the local language and cultural norms of the
informants.

(c) Collection of Secondary Data There are two main sources of secondary data

Published sources
Unpublished sources

(d) Published Sources Some of the published source of secondary data are

Government publication

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Semi-government publication
Reports of committees and commissions

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Publications of trade associations
Publication of research institutions
Journals and papers
Publication of research scholars
International publication

(e) Unpublished Sources These data are collected by the government organisations and
others, generally for their self use or office record.
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In order to assess the reliability, suitability and adequacy of the data, the following
points must be kept in mind
Ability of the collecting organisation
Objective and scope
Method of collection
Time and condition of organisation
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Definition of the unit
Accuracy

(v) Census ‘Method

Census method is that method in which data are collected covering every item of the
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universe or population relating to the problem under investigation. Merits and demerits
of this method are given follows
(a) Merits

Reliable and accurate

Less biased
Extensive information
Study of diverse characteristic
Study of complex investigation
Indirect investigation

(b) Demerits

Costly

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 Large manpower
Not suitable for large investigation

(vi) Sample Method

It is that method in which data is collected about the sample on a group of items taken
from the populations for examination and conclusions are drawn on their basis. Merits
and demerits of this method are given below
(a) Merits

Economical
Time saving
Identification of error

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Large investigation

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Administrative convenience
More scientific

(b) Demerits

Partial
Wrong conclusions
Difficulty in selecting representative sample
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Difficulty in framing a sample
Specialised knowledge

Methods of Sampling
(i) Random Sampling Random sampling 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 may be done in any of the following ways
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Lottery method
Tables of random number

(ii) Purposive or Deliberate Sampling It is that method in which the investigator himself
makes the choice of the samples items which in his opinion are the best representative of
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the universe.
(iii) Stratified or Mixed Sampling According to this method of sampling population is
divided into different strata having different characteristics and some of the items are
selected from each strata, so the entire population gets represented.
(iv) Systematic Sampling According to this methods, units of the population are
numerically, geographically and alphabetically arranged. Every nth item of the numbered
is selected as a sample item.
(v) Quota Sampling In this method, the population is divided into different groups or
classes according to different characteristics of the population.
(vi) Convenience Sampling In this method, sampling is done by the investigator in such a
manner that suits his convenience.

Reliability of Sampling Data

It depends mainly on the following factors

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 Size of the sample
Method of sampling
Bias of correspondents and enumerators
Training of enumerators

Important agencies at the national level which collect process and tabulate the statistical
data. NSSO (National Sample Survey Organisation), RGI (Registrar General of India),
DGCIS (Directorate General of Commercial Intelligence and Statistics) and Labour
Bureaus.

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