UNIT I

Syllabus:

Meaning – Definition & Scope of Statistics, Collection of data – Primary & Secondary –
Methods of Collecting data, Classification & Tabulation – Graphs – Histogram & Ogive
curves, Pie & Bar diagrams (Single Dimensional only).

Introduction

We live in a world in which we are constantly surrounded by data-counts, figures, lengths, colours,
etc. with such an enormous amount of data penetrating our lives, it is difficult to make sense of
such data. This is where the mathematical methods of statistics come in. The mathematical science
called statistics helps us to deal with this data. Statistical methods allow us to analyze, evaluate
and better understand the data that is all around us. We have to make good decisions based on the
available data. We have to extract meaningful information from the overwhelming data.

“Statistics is the science of collection, analysis, presentation and interpretation of data.”

The science of statistics can summarize and simplify the large amounts of numerical data. It is a
branch of mathematics. Using statistical methods we can draw conclusions about data. The
knowledge of statistical methods is useful in all the areas of human studies such as business,
economics, biology, marketing, education, medicine etc. statistics makes effective use of
numerical data relating to groups of individuals or experiments. It is an art of changing numbers
into information.

The word ‘Statistics’ is derived from the words – ‘Statistik’ (German) means ‘science of state’,
‘Status’ (Latin) means ‘State Affairs” and ‘Statistique’ (French) means “State”. Thus Statistics
was treated as the ‘Science of Statecraft’ and used to collect and compile data relating to man
power and material strength of the state in governing the people. The census conducted by the
rulers provided regular information for implementing administrative policies.

In the 18th century, the meaning of Statistics broadened and extended to the discipline concerned
with the collection, summary and analysis of data.

The word statistics, as a singular noun, refers to the science dealing with the collection of data and
extracting information from them in compact form by tabulating, summarizing and analyzing the
numerical data or a set of observations. It provides knowledge about statistical tools or methods.
The word statistics, as a plural noun, refers to facts and figures that are obtained with the help of
statistical methods.

Thus, statistics is a mathematical discipline that allows us to summarize and analyze data. It
consists of two major divisions – Descriptive Statistics and Inferential Statistics. Descriptive
Statistics aims at reduction of data by summarizing or simplifying the large amount of data.
Inferential Statistics helps us to infer from the sample data what the population might be and make
decisions or reach conclusions. It uses patterns or models in the sample data to draw inferences
about the population represented and accounting for randomness.

Definition

“Statistics may be called the science of counting”. – Dr. Bowley A.L

“Statistics may be defined as science of collection, presentation, analysis and interpretation of

numerical data”. – F.E. Coroxton and D.J Cowden.

“Statistics is concerned with scientific method for collecting, organizing, summarizing, presenting
and analyzing data as well as drawing valid conclusions and making reasonable decisions on the
basis of such analysis. “ - Spiegal

These above definitions explain the discipline (singular meaning) as a science and an art as well.
It is a science as it provides laws and methods of analyzing data. It is an art as it applies human
skill in interpreting results of analysis.

“Statistics may be defined as the aggregate of facts affected to a marked extent by a multiplicity
of causes, numerically expressed, enumerated or estimated according to a reasonable standard of
accuracy, collected in a systematic manner for a predetermined purpose and placed in relation to
each other.” – H. Secrist

The above broad definition (plural Meaning) points out some essential characteristics that
numerical facts must possess so that they may be called statistics:

1. Statistics are numerical facts.

2. Statistics are aggregate of facts.
3. Statistics are affected to a marked extent by a multiplicity of factors.
4. Statistics are either enumerated or estimated with reasonable standard of accuracy.
5. Statistics are collected in a systematic manner and for a predetermined purpose.
6. Statistics should be capable of being placed in relation to each other. This characteristic
requires that the collected data should be comparable with reference to time or place or any
other condition.

Functions of Statistics

Important functions of statistics are given below:

1. Statistics simplifies complexity: Statistic consists of aggregate of numerical facts. Huge

facts and figures are difficult to remember. The complex mass of figures can be made
simple and understandable with the help of statistical methods. Statistical techniques such
as averages, dispersion, graph, diagram etc. make huge mass of figures easily
 understandable. So, the function of statistics is to reduce the complexity of the huge mass
of figures to a simpler form.

2. Statistics presents fact in a definite form: One of the important functions of statistics is
to present the general statements in a precise and definite form. The conclusion stated
numerically is definite and hence more convincing than the conclusions stated
qualitatively. This fact can readily be understood by the following example: "The
population of Nepal is 1981 has been increased than in 1971". There will be no clear idea
about this statement. Everybody wants to know to what extent the population of Nepal has
increased. But the statement that "the population of Nepal has increased from 11555983 in
1971 to 15022839 in 1981" is a definite form.

3. Statistics facilities comparison: The science of statistics does not mean only counting but
also comparison. Unless the figures are compared with other figures with the same kind,
they are meaningless. Statistical methods such as averages, ratios, percentages, rates,
coefficients etc. offer the best way of comparison between two phenomena which will
enable to draw valid conclusion. So, statistics helps in the comparison of two phenomena.
For example: The statement that "the per capita income of Nepal is $160" is not so clear
unless it is compared with the per capita income of any other country.

4. To help in formulation of policies: Statistics helps in formulating the policies in different

fields mainly in economics, business etc. The government policies are also framed on the
basis of statistics. In fact, without statistics, suitable policies cannot be framed. For
example: The quantity of food grains to be imported in a particular year depends upon the
expected internal production and the expected consumption. That is if the expected wheat
production in the particular year be 701 thousands metric tons and that of consumption 710
thousand metric tons so we must import 9 thousand metric tons of food grains.

5. Statistics helps in forecasting: While preparing suitable policies and plans, it is necessary
to have the knowledge of future tendency. This is mostly in case of industry, commerce
and so on. Statistical methods provide helpful means in forecasting the future by studying
and analyzing the tendencies based on passed records. For example: Suppose a
businessman wants to know the expected sales of T.V. for the next year, the better method
for him would be to analyze the sales data of the past years for the estimation of the sales
volume for the next year.

6. Statistics helps in formulating and testing hypothesis: Statistical methods are helpful
not only in estimating the present forecasting the future but also helpful in formulating and
testing the hypothesis for the development of new theories. Hypothesis like 'whether a
particular fertilizer is effective for the production of a particular commodity' 'whether a
dice is biased or not' can be tested with the help of statistical tools.

Importance of Statistics
It is perhaps difficult to imagine a field of knowledge which can do without statistics. To begin
with, the State started the use of statistics, but now it is being used by almost every branch of
knowledge such as physics, chemistry, biology, sociology, geography, economics, business etc.
The use of statistics provides precision to various ideas and can also suggest possible ways of
tackling a problem relating to any of the above subjects.

We shall briefly discuss, the importance of statistics in the following major areas:

a) Importance to the State: We know that the subject matter of Statistics originated for helping
the ancient rulers in the assessment of their military and economic strength. Gradually its
scope was enlarged to tackle other problems relating to political activities of the State. In
modern era, the role of State has increased and various governments of the world also take
care of the welfare of its people. Therefore, these governments require much greater
information in the form of numerical figures for the fulfillment of welfare objectives in
addition to the efficient running of their administration.

b) Importance in Economics: Statistics is an indispensable tool for a proper understanding of

various economic problems. It also provides important guidelines for the formulation of
various economic policies. National income accounts are multipurpose indicators for the
economists and administrators. Statistical methods are used for preparation of these
accounts. In economic research statistical methods are used for collecting and analysis the
data and testing hypothesis. The relationship between supply and demand is studied by
statistical methods, imports and exports, inflation rate, per capita income are some of the
problems which require good knowledge of statistics.

c) Importance in Planning: Planning is indispensable for achieving faster rate of growth

through the best use of a nation’s resources. It also requires a good deal of statistical data
on various aspects of the economy. One of the aims of planning could be to achieve a
specified rate of growth of the economy. Using statistical techniques, it is possible to assess
the amounts of various resources available in the economy and accordingly determine
whether the specified rate of growth is sustainable or not. The statistical analysis of data
regarding an economy may reveal certain areas which might require special attention, e.g.,
a situation of growing unemployment or a situation of rising prices during past few years.

d) Importance in Business: Statistics play an important role in business. A successful

businessman must be very quick and accurate in decision making. He knows that what his
customers wants, he should therefore, know what to produce and sell and in what
quantities. Statistics helps businessman to plan production according to the taste of the
costumers, the quality of the products can also be checked more efficiently by using
statistical methods. So all the activities of the businessman based on statistical information.
 He can make correct decision about the location of business, marketing of the products,
financial resources etc.

e) Importance in Banking: Statistics play an important role in banking. The banks make use
of statistics for a number of purposes. The banks work on the principle that all the people
who deposit their money with the banks do not withdraw it at the same time. The bank
earns profits out of these deposits by lending to others on interest. The bankers use
statistical approaches based on probability to estimate the numbers of depositors and their
claims for a certain day.

f) Importance in Accounting and Auditing: Accounting is impossible without exactness. But

for decision making purpose, so much precision is not essential the decision may be taken
on the basis of approximation, know as statistics. The correction of the values of current
asserts is made on the basis of the purchasing power of money or the current value of it. In
auditing sampling techniques are commonly used. An auditor determines the sample size
of the book to be audited on the basis of error.

g) Importance in pure science and other social science: Statistics is also a helpful tool in pure
science like biology, physics, astronomy, medical science, etc. and also other social science
such as environmental science, geographical science, etc. In these fields, different types of
information and numerical facts and figures are required to study. Without using statistical
tools in these subjects, the study becomes incomplete as well as difficult.

Statistics is useful in every sphere of life and activities. The methods and ideas of statistics are so
widely used nowadays that we can’t imagine our life and different activities without statistics.

Scope of Statistics

One cannot think of undertaking any research activities without using statistics. It is used in all
spheres of human activities relating to different sciences.

“Science without Statistics bears no fruits; Statistics without science has no roots.”

The importance of statistics makes it clear that the science is indispensable. Its scope, is therefore,
enormous and strengthened over all the fields of enquiry. It provides much guiding insight in many
branches of science.

The scope of statistics is studied under the following three heads 1. Nature of Statistics. 2. Subject
matter of Statistics. 3. Limitations of Statistics.

Nature of Statistics

Under nature, we study whether statistics is a science or art. According to Tipp "Statistics is both
a science and an art" As a science, it studies the statistics systematic manner. As an art, it uses
statistics to solve the problems of real life.
According to Dr. Bowley, "Statistics is the science of measurement of the social organism regarded
as a whole in all its manifestations." This definition defective. According to this definition the
scope of the science will be restricted to and his activities.

Again according to Dr. Bowley, "Statistics is the science of counting." This also not corrects.
Statistics is not only concerned with counting but also with tabulation, summarizing, drawing
graphs etc. Again the word counting gives an idea of exactness. But this is not so in statistics.

But a noteworthy point is that statistics is not an exact science like Physics, Chemistry etc. It is
because statistical phenomena are generally affected by multiplicity of causes which cannot be
measured accurately. It means statistics is a science in limited sense.

It is a specialized branch of knowledge. Wallis and Roberts in the book-"Statistics-A New

Approach" have stated that "Statistics is not a body substantive knowledge but a body of methods
for obtaining knowledge."

It is a known fact that if science is a systematic knowledge then art is an action. From this point in
view, statistics is also an art. In statistics, we apply various us to obtain facts, derive conclusions
and finally suggest policy measures.

Hence statistics is both a science as well as an art.

Subject Matter of Statistics

The subject matter of statistics can be studied under two headings:

1. Statistical Methods

2. Applied Statistics

Statistical Methods

Statistical methods are the procedures used in collection organization, presentation, analysis and
interpretation of data. Thus, these are the in the hands of a statistical investigator which help to
achieve the desired goals, always a means to an end whose accuracy depends on the aim to be
achieved.

Applied Statistics:

The applied statistics includes application of statistical methods and techniques to the problems
and facts as they exist. Therefore, applied statistics is classified into two parts (i) Descriptive (ii)
Inferential.

(a) Descriptive Statistics:

Descriptive measures are used to characterize of figures on Industrial output, population growth
or agricultural output are the instances of descriptive study. For example, production statistics
explain the nature and volume of production trends in different years. Similarly, statistics for prices
and wages are useful in framing policies in the country.

(b) Inferential Statistics:

Scientific statistics are involved in making forecasts, judgments or estimation. With the help of
statistical data, validity of certain laws can be correctly established.

Limitations of Statistics

Besides the importance of statistics in every field of life, it has some limitations. The following
are the main limitations of statistics are:

1. Statistics does not deal with individuals: A part of the definition of statistics is that it
must be the aggregates of facts. That is, it deals only with the mass phenomena. A single
item or the isolated figure cannot be regarded as statistics. This is a serious limitation of
statistics. For example: the mark obtained by a student in English is 75 does not constitute
statistics but the average of a group of students in English is 75 forms statistics.

2. Statistics does not study qualitative phenomena: The science of statistics studies only
the quantitative aspect of the problem. Statistics cannot directly be used for the study of
qualitative phenomena such as honesty, intelligence, beauty, poverty etc. however, some
statistical techniques can be used to study such qualitative phenomena indirectly by
expressing them into numbers. For example: the intelligence of the boys can be studied
with the help of marks obtained by them in an examination.

3. Statistical laws are not exact: 100% accuracy is rare in statistical work because statistical
laws are true only on the average. They are not exact as, are the laws of Physics and
Mathematics. For example: the probability of getting a head in a single toss of a coin is ½.
This does not imply that 3 heads will be obtained if a coin is tossed 6 times. Only one head,
2 times head or all the times head or no head may be obtained.

4. Statistics is only a means: Statistical methods provide only a method of studying problem.
There are other methods also. These methods should be used to supplement the conclusions
derived with the help of statistics.

5. Statistics is liable to be misused: The most important limitation of statistics is that it must
be handled by experts. Statistical methods are the most dangerous tools in the hands of
inexpert. Since statistics deals with masses of figures, so it can easily be manipulated by
inexperienced and skilled persons. Statistical methods if properly be used, may conclude
 useful results and if misused by inexpert, unskilled persons, it may lead to fallacious
conclusion.

6. Statistical results are true on an average: Statistical results give the behaviour of the
group on an average and these may not hold true for an individual of that very group.

Statistical Investigation

A statistical investigation is a process of collection and analysis of data. A statistical investigation

can be done by collecting numerical facts or data through the conduct of statistical surveys. The
collected data are then analyzed to get the results. Any process of statistical investigation can be
divided into the following two broad categories:

i. Planning of a Statistical Investigation.

ii. Execution of a Statistical Investigation

A proper planning of a statistical investigation is necessary to get the best possible results at
minimum cost. The answers to the following questions should be found to facilitate a proper
planning of an investigation:

i). what is the precise nature of the problem, ii). The objectives, (iii).the scope, (iv) the statistical
units, (v) degree of accuracy, (vi) period, (vii) Source of information, (viii) type, and (ix) the nature
of organization, of an investigation?

The process of collection, editing, classification, diagrammatic presentation, analysis and

interpretation of data forms the execution stage of an investigation. This stage also includes the
preparation of the report based on the results of analysis and interpretation.

Statistical investigation is done on the basis of data collected from the relevant field of enquiry.
The collection of data can be done by observing either all or a part of the units under investigation.
The method of investigation in which data are collected by observing all the units, is called a
Census Investigation. If on the other hand, data are collected by observing a fraction of the total
units, the method is termed as ‘Sample Investigation’.

Collection of Data

The procedure for collection of data depends upon various considerations such as objective, scope,
nature of investigation, etc. Availability of resources like money, time, manpower etc., also affect
the choice of a procedure. Data may be collected either from a primary or from a secondary source.

Data from a primary source are collected, for the first time, keeping in view the objective of the
investigation. Secondary data, on the other hand, are available from certain publications or reports.
Such data are already collected by some other agency in the past for some other purpose. Thus,
the primary data collected with a specified objective of investigation, are likely to be more reliable
as compared to secondary data. The use of secondary data, whenever necessary, must be done vary
carefully. The cost of collection of primary data, however, is much higher.

Collection of Primary Data

Primary data are always collected from the source. It is collected either by the investigator himself
or through his agents. There are different methods of collecting primary data. Each method has its
relative merits and demerits. The investigator has to choose a particular method to collect the
information. The choice to a large extent depends on the preliminaries to data collection. Some of
the commonly used methods are discussed below.

1. Direct Personal observation:

This is a very general method of collecting primary data. Here the investigator directly contacts
the informants, solicits their cooperation and enumerates the data. The information are collected
by direct personal interviews.

The novelty of this method is its simplicity. It is neither difficult for the enumerator nor the
informants because both are present at the spot of data collection. This method provides most
accurate information as the investigator collects them personally. But as the investigator alone is
involved in the process, his personal bias may influence the accuracy of the data. So it is necessary
that the investigator should be honest, unbiased and experienced. In such cases the data collected
may be fairly accurate. However, the method is quite costly and time-consuming. So the method
should be used when the scope of enquiry is small.

Merits

i. Original data are collected.

ii. Collected data are more accurate and reliable.
iii. The investigator can modify or put indirect questions in order to extract satisfactory
information.
iv. The collected data are often homogeneous and comparable.
v. Misinterpretations or misgivings, if any, on the part of the respondents can be avoided
by the investigators.

Demerits

i. This method is expensive and time consuming.

ii. It is not possible to properly train a large team of investigators.
iii. The bias or prejudice of investigators can affect the accuracy of data to a large extent.
iv. Data are collected as per the convenience and willingness of the respondents.

2. Indirect Oral Interviews:

This is an indirect method of collecting primary data. Here information is not collected directly
from the source but by interviewing persons closely related with the problem. This method is
applied to apprehend culprits in case of theft, murder etc. The information relating to one's personal
life or which the informant hesitates to reveal are better collected by this method. Here the
investigator prepares 'a small list of questions relating to the enquiry. The answers (information)
are collected by interviewing persons well connected with the incident. The investigator should
cross-examine the informants to get correct information.

This method is time saving and involves relatively less cost. The accuracy of the information
largely depends upon the integrity of the investigator. It is desirable that the investigator should be
experienced and capable enough to inspire and create confidence in the informant to collect
accurate data.

Merits

i. This method is suitable when the area of investigation is large or when the respondents
are reluctant to part with the information.
ii. It is economical in terms of money, time and manpower.
iii. Since the information is collected from the persons who are well aware of the situation,
it is likely to be unbiased and reliable.
iv. This method is particularly suitable for the collection of confidential; information.

Demerits

i. As compared with direct personal observation, the degree of accuracy of the data is
likely to be lower.
ii. The information collected from different persons may not be homogeneous and
comparable.
iii. The persons, providing the information, may be prejudiced or biased.

3. Mailed Questionnaire method:

This is a very commonly used method of collecting primary data. Here information are collected
through a set of questionnaire. A questionnaire is a document prepared by the investigator
containing a set of questions. These questions relate to the problem of enquiry directly or
indirectly. Here first the questionnaires are mailed to the informants with a formal request to
answer the question and send them back. For better response the investigator should bear the postal
charges. The questionnaire should carry a polite note explaining the aims and objective of the
enquiry, definition of various terms and concepts used there. Besides this the investigator should
ensure the secrecy of the information as well as the name of the informants, if required.

Success of this method greatly depends upon the way in which the questionnaire is drafted. So the
investigator must be very careful while framing the questions. The questions should be
(i) Short and clear

(ii) Few in number

(iii) Simple and intelligible

(iv) Corroboratory in nature or there should be provision for cross check

(v) Impersonal, non-aggressive type

(vi) Simple alternative, multiple-choice or open-end type

(a) In the simple alternative question type, the respondent has to choose between alternatives such
as ‘Yes or No’, ‘right or wrong’ etc.

For example: Is Adam Smith called father of Statistics ? Yes/No,

(b) In the multiple choice type, the respondent has to answer from any of the given alternatives.

Example: To which sector do you belong?

(i) Primary Sector

(ii) Secondary Sector

(iii) Tertiary or Service Sector

(c) In the Open-end or free answer questions the respondents are given complete freedom in
answering the questions. The questions are like -

What are the defects of our educational system?

The questionnaire method is very economical in terms of time, energy and money. The method is
widely used when the scope of enquiry is large. Data collected by this method are not affected by
the personal bias of the investigator. However the accuracy of the information depends on the
cooperation and honesty of the informants. This method can be used only if the informants are
cooperative, conscious and educated. This limits the scope of the method.

4. Schedule Method:

In case the informants are largely uneducated and non-responsive data cannot be collected by the
mailed questionnaire method. In such cases, schedule method is used to collect data. Here the
questionnaires are sent through the enumerators to collect information. Enumerators are persons
appointed by the investigator for the purpose. They directly meet the informants with the
questionnaire. They explain the scope and objective of the enquiry to the informants and solicit
their cooperation. The enumerators ask the questions to the informants and record their answers in
the questionnaire and compile them. The success of this method depends on the sincerity and
efficiency of the enumerators. So the enumerator should be sweet-tempered, good-natured, trained
and well-behaved.

Schedule method is widely used in extensive studies. It gives fairly correct result as the
enumerators directly collect the information. The accuracy of the information depends upon the
honesty of the enumerators. They should be unbiased. This method is relatively more costly and
time-consuming than the mailed questionnaire method.

5. From Local Agents:

Sometimes primary data are collected from local agents or correspondents. These agents are
appointed by the sponsoring authorities. They are well conversant with the local conditions like
language, communication, food habits, traditions etc. Being on the spot and well acquainted with
the nature of the enquiry they are capable of furnishing reliable information.

The accuracy of the data collected by this method depends on the honesty and sincerity of the
agents because they actually collect the information from the spot. Information from a wide area
at less cost and time can be collected by this method. The method is generally used by government
agencies, newspapers, periodicals etc. to collect data.

Information is like raw materials or inputs in an enquiry. The result of the enquiry basically
depends on the type of information used. Primary data can be collected by employing any of the
above methods. The investigator should make a rational choice of the methods to be used for
collecting data because collection of data forms the beginning of the statistical enquiry.

Drafting a Questionnaire or a Schedule

A questionnaire or a schedule is a list of questions relating to the problem under investigation.

There is no basic difference between a questionnaire and a schedule. A questionnaire is filled by
the respondent, while a schedule is filled by the investigator.

The quality of the information collected through the filling of a questionnaire depends, to a large
extent, upon the drafting of its questions. Hence it is extremely important that the questions be
designed or drafted very carefully and in a tactful manner. The following points must be kept in
mind to draft a good questionnaire or a schedule:

i. The questions should be simple, unambiguous and precise.

ii. The number of questions should be as small as possible. Only those questions which
have a direct relevance to the problem be included.
iii. The questions should be framed in such a manner that their answers are specific and
precise. The following four types of questions are generally framed in any
questionnaire:
a) Simple alternative questions: such questions are answered by yes/no or right/wrong
etc.
 b) Multiple choice questions: in such questions, the possible answers are printed in
the questionnaire and the respondent is supposed to tick any one of them.
c) Specific Information questions: Such questions are used to extract specific
information like how many members are there in your family, what is your monthly
income etc. ‘
d) Open Questions: these questions are to be answered by the respondent in his own
words. The questions should be such that it is possible to answer them in few words.
Care should be taken to avoid answers that use words like probably, fairly good etc.
iv. The questions should be capable of being easily answered by the respondents.
v. The questions affecting the pride and sentiments of the respondents should be avoided.
vi. The questions should be directly related to the objectives of the investigation.
vii. The questions relating to mathematical computations should be avoided.
viii. The questions should follow a logical sequence so that a natural and spontaneous reply
to each question is induced.
ix. Certain corroborative questions must also be asked to verify the accuracy of the
supplied information.
x. Necessary instructions for filling the questionnaire should also be given in simple and
precise form.
xi. Enough space should be provided for answers. The questionnaire should look as
attractive as possible.
xii. Before actually using a questionnaire, a test check must always be done by obtaining
answers from some respondents. The questionnaire should be modified, if necessary,
in the light of these answers.
Sources of Secondary Data

Secondary data are second hand information. They are not collected from the source as the primary
data. In other words, secondary data are those which have already been collected. So they may be
relatively less accurate than the primary data. Secondary data are generally used when the time of
enquiry is short and the accuracy of the enquiry can be compromised to some extent. Secondary
data can be collected from a number of sources which can broadly be classified into two categories.

i) Published sources

ii) Unpublished sources

Published Sources:

Mostly secondary data are collected from published sources. Some important sources of published
data are the following.

1. Published reports of Central and State Governments and local bodies.

2. Statistical abstracts, census reports and other reports published by different ministries of the
Government.

3. Official publications of the foreign Governments.

4. Reports and Publications of trade associations, chambers of commerce, financial institutions

etc.

5. Journals, Magazines and periodicals.

6. Periodic Publications of Government organizations like Central Statistical Organization (C. S.

O.), National Sample Survey Organization (NSSO).

7. Reports submitted by Economists, Research Scholars, Bureaus etc.

8. Published works of research institutions and Universities etc.

Unpublished Sources:

Statistical data can also be collected from various unpublished sources. Some of the important
unpublished sources from which secondary data can be collected are:

1. The research works carried out by scholars, teachers and professionals.

2. The records maintained by private firms and business enterprises. They may not like to publish
the information considering them as business secret.

3. Records and statistics maintained by various departments and offices of the Central and State
Governments, Corporations, Undertakings etc.

Secondary data are already collected information. They might have been collected for some
specific purposes. So they must be used with caution. It is generally very different to verify such
information to find out inconsistencies, errors, omissions etc. Therefore scrutiny of secondary data
is essential because the data might be inaccurate, unsuitable or inadequate. Thus it is very risky to
use statistics collected by other people unless they have been thoroughly edited and found reliable,
adequate and suitable for the purpose.
Precautions to be taken while using Secondary data

The investigator should take precautions before using the secondary data. The data which is not
collected by a person, not for his own use may not be much reliable.

Because these data have not been collected for the predetermined purpose, these data may not be
in a position to fully solve the problem in hand.

So while using these data, the following three factors must be kept in view:

(i) Are data reliable?

(ii) Are data adequate? ; and

(iii) Are data suitable for the enquiry?

In this connection, following precautions should be taken into account.

1. Suitable Purpose of Investigation:

The investigator must ensure that the data are suitable for the purpose of enquiry.

2. Inadequate Data:

Adequacy of the data is to be judged in the light of the requirements of the survey as well as the
geographical area covered by the available data.

3. Definition of Units:

The investigator must ensure that the definitions of units which are used by him are the same as in
the earlier investigation.

4. Degree of Accuracy:

The investigator should keep in mind the degree accuracy maintained by each investigator.

5. Time and Condition of Collection of Facts:

It should be ascertained before making use of available data to which period and conditions, the
data was collected.

6. Comparison:

Investigator should keep in mind whether the secondary data' reasonable, consistent and
comparable.

7. Test Checking:
The use of the secondary data must do test checking and see that totals and rates have been
correctly calculated.

8. Homogeneous Conditions:

It is not safe to take published statistics at their face value without knowing their means, values
and limitations.

Classification of Data

The collected data are complex and unorganized mass of figures which is very difficult to analyze
and interpret. Therefore, it becomes necessary to organize this so that it becomes easier to grasp
its broad features. Further, in order to apply the tools of analysis and interpretation, it is essential
that the data are arranged in a definite form. This task is accomplished by the process of
classification and tabulation.

Classification is the process of arranging the available data into various homogeneous classes and
subclasses according to some common characteristics or objective of investigation. The chief
characteristics of any classification are:

1. The collected data are arranged into homogeneous groups.

2. The basis of classification is the similarity of characteristics or features inherent in the
collected data.
3. Classification of data signifies unity in diversity.
4. Classification of data may be actual or notional.
5. Classification of data may be according to certain measurable or non-measurable
characteristics or according to some combination of both.

Objectives of Classification

The main objectives of any classification are:

1. To present a mass of data in a condensed form.

2. To highlight the points of similarity and dissimilarity.
3. To bring out the relationship between variables.
4. To highlight the effect of one variable by eliminating the effect of others.
5. To facilitate comparison.
6. To prepare data for tabulation and analysis.

Requisites of a good Classification

A good classification must possess the following features:

 1. Unambiguous: the classification should not lead to any ambiguity or confusion.
2. Exhaustive: A classification is said to be exhaustive if there is no item that can be allotted
a class.
3. Mutually Exclusive: different classes are said to be mutually exclusive if they are non-
overlapping. When a classification is mutually exclusive, each item of the data can be
placed in only one of the classes.
4. Flexibility: a good classification should be capable of being adjusted according to the
changed situations and conditions.
5. Stability: the principle of classification, once decided, should remain same throughout the
analysis, otherwise it will not be possible to get meaningful results. In the absence of
stability, the results of the same type of investigation at different time periods may not be
comparable.
6. Suitability: the classification should be suitable to the objectives of investigation.
7. Homogeneity: A classification is said to homogeneous if similar items are placed in a class.
8. Revealing: a classification is said to be revealing if it brings out essential features of the
collected data. This can be done by selecting a suitable number of classes.

Types of Classification

The nature of classification depends upon the purpose and objective of investigation. The
following are some very common types of classification:

1. Geographical (or Spatial) Classification

2. Chronological Classification
3. Conditional classification
4. Qualitative classification
5. Quantitative classification

1. Geographical (or Spatial) classification:

When the data are classified according to geographical location or region, it is called
geographical classification. For example, the State wise Net Domestic Product for 1984-85 at
current prices can be shown as below:
 For the purpose of immediate location or comparison of data , it is necessary that it should be
presented either in alphabetical or in ascending (or descending) order of the figures.

2. Chronological Classification

When the data are classified on the basis of its time of occurrence, it is called chronological
classification. Various time series such as: National Income figures (annual), annual output
of wheat, monthly expenditure of a household, daily consumption of milk etc., are some
examples of chronological classification.

3. Conditional Classification

When the data are classified according to certain conditions, other than geographical or
chronological, it is called a conditional classification. An example of such classification is
given below:
4. Qualitative Classification:

When the characteristics of the data are non-measurable, it is called a qualitative data. The
examples of non-measurable characteristics are sex of a person, marital status, color,
honesty etc. These characteristics are also known as attributes. When qualitative data are
given, various items can be classified into two or more groups according to a characteristic.
If the data are classified only into two categories according to the presence or absence of
an attribute, the classification is termed as dichotomous or twofold classification. On the
other hand, if the data are classified into more than two categories according to an attribute,
it is called manifold classification.

If the classification is done according to a single attribute, it is known as a one-way

classification. On the other hand, the classification done according to two or more attributes
is known as a two-way or multi-way classification respectively. The example of a three-
way classification, where population is dichotomized according to each attribute – sex,
honesty and smoking habit, is given below:

5. Quantitative Classification:

In case of quantitative data, the characteristic is measurable in terms of numbers and is

termed as variable weight, height, income, the number of children in a family etc. A
variable can take a different value corresponding to a different item of the population or
universe.

Variables can be of two types: (a) Discrete (b) Continuous.

(a) Discrete Variable: A discrete variable can assume only some specific values in a given
interval. For example, number of children in a family, the number of rooms in a house
etc.
(b) Continuous Variable: A continuous variable can assume any value in a given interval.
For example, monthly income of a worker can take any value, say, between Rs.1000
and Rs.2000. The income of a worker can be Rs.1250.25 etc.
TABULATION

Tabulation is a systematic presentation of numerical data in rows and columns. Tabulation of

classified data make it more intelligible and fit for statistical analysis. The classified data presented
in tabular form helps to bring out their essential features.

Objectives of Tabulation
The main objectives of tabulation are:

1. To simplify complex data.

2. To highlight chief characteristics of the data.
3. To clarify objectives of investigation.
4. To present data in minimum space.
5. To detect errors and omissions in the data.
6. To facilitate comparison of data.
7. To facilitate reference.
8. To identify trend and tendencies of the given data.
9. To facilitate statistical analysis.

Difference between Classification and Tabulation

The paramount differences between classification and tabulation are discussed in the points given
below:

1. The process of arranging data into different categories, on the basis of nature, behavior, or
common characteristics is called classification. A process of condensing data and
presenting it in a compact form, by putting data into statistical table, is called tabulation.

2. Classification of data is done after data collection process is completed. On the other hand,
tabulation follows classification.

3. Data classification is based on similar attributes and variables of the observations.

Conversely, in tabulation the data is arranged in rows and columns, in a systematic way.

4. Classification of data is performed with the objective of analyzing data in order to draw
inferences, unlike tabulation, which aims at presenting data, to ensure easy comparison of
various figures.

5. In classification, data is bifurcated into categories and sub-categories while in tabulation

data is divided into headings and sub-headings.

Main Parts of a Table

The main parts of a table are as given below:

i. Table Number: This number is helpful in the identification of a table. This is often
indicated at the top of the table.
ii. Title: each table should have a title to indicate the scope, nature of contents of the table
in an unambiguous and concise form.
iii. Captions and Stubs: A table is made up of rows and columns. Headings or subheadings
used to designate columns are called captions while those used to designate rows are
called stubs. A caption or a stub should be self explanatory. A provision of totals of
 each row or column should always be made in every table by providing an additional
column or row respectively.
iv. Main Body of the Table: This is the most important part of the table as it contains
numerical information. The size and shape of the main body should be planned in view
of the nature of figures and the objective of investigation. The arrangement of
numerical data in main body is done from top to bottom in columns and from left to
right in rows.
v. Ruling and Spacing: Proper ruling and spacing is very important in the construction
of a table. Vertical lines are drawn to separate various columns with the exception of
sides of a table. Horizontal lines are normally not drawn in the body of a table, however,
the totals are always separated from the main body by horizontal lines. Further, the
horizontal lines are drawn at the top and the bottom of a table.
vi. Head Note: A head-note is often given below the title of a table to indicate the units of
measurement of the data. This is often enclosed in brackets.
vii. Foot Note: Abbreviations, if any, used in the table or some other explanatory notes are
given just below the last horizontal line in the form of footnotes.
viii. Source- Note: This note is often required when secondary data are being tabulated.
This note indicates the source from where the information has been obtained. Source
note is also given as a footnote.

The main parts of a table can also be understood by looking at its broad structure given below:

Rules for Tabulation

The rules for tabulation of data can be divide into two broad categories: (i) Rules regarding
Structure of a table (explained above) and (ii) General Rules.

General rules

i. The table should be simple and compact which is not overloaded with details.
ii. Tabulation should be in accordance with the objective of the investigation.
 iii. The unit of measurements must always be indicated in the table.
iv. The captions and stubs must be arranged in a systematic manner so that it is easy to
grasp the table.
v. A table should be complete and self-explanatory.
vi. As far as possible, the interpretative figures like totals, ratios and percentages must also
be provided in a table.
vii. The entries in a table should be accurate.
viii. Table should be attractive to draw the attention of readers.

Types of Tables

Statistical tables can be classified into various categories depending upon the basis of their
classification. Broadly speaking, the basis of classification can be any of the following:

i. Purpose of investigation
ii. Nature of presented figures.
iii. Construction

Different types of tables, thus, obtained are shown in the following chart:

i. Classification on the basis of purpose of investigation: These tables are of two types:
a) General Purpose Table and (b) Special Purpose Table.
a) General Purpose Table: A general purpose table is also called as a reference table.
This table facilitates easy reference to the collected data. A general purpose table is
formed without any specific objective, but can be used for a number of purposes.
Such a table usually contains a large mass of data and is generally given in the
appendix of a report.
b) Special Purpose Table: A special purpose table is also called a text table or a
summary table or an analytical table. Such a table presents data relating to a specific
problem. Such tables are usually of smaller size than the size of reference tables
and are generally found to highlight relationship between various characteristics or
to facilitate their comparisons.
ii. Classification on the basis of the nature of presented figures: Tables when classified
on the basis of the nature of presented figures can be (a) Primary table (b) Derivative
table.
a) Primary Table: Primary table is also known as original table and it contains data in
the form in which it were originally collected.
b) Derivative Table: A table which presents figures like totals, averages, percentages,
ratios etc. derived from the original table.

iii. Classification on the basis of construction: Tables when classified on the basis of
construction can be (a) Simple Table, (b) Complex Table, (c) Cross-classified Table.
a) Simple Table: In this table data is presented according to one characteristic only.
This is the simplest form of a table and is also known as table of first order. The
following blank table, showing the number of workers in each shift of a company,
is an example of a simple table:

b) Complex Table: A complex table is used to present data according to two or more
characteristics. Such a table can be two-way, three-way or multi-way.

• Two-way table: Such a table presents data that is classified according to two
characteristics. In such a table the columns of a table are further divided into
sub-columns. An example of such a table is given below:

• Three-way table: when three characteristics of data are shown

simultaneously, we get a three-way table as shown below:
 c) Cross-Classified Table: tables that classify entries in both directions, i.e.,row-wise
and column-wise, are called cross-classified tables. The two-ways of classification
are such that each category of one classification can occur with any category of the
other. Cross-classified tables can also be constructed for more than two
characteristics also.

Example: