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Course:SEC-T III SEMESTER M.A ECONOMICS

COMPUTER FUNDAMENTAL TO ECONOMICS-I

Karnataka State Open University SEC-T

Karnataka State Open University Blocks – 1-3

1
 Karnataka State Open University
Mukthagangotri, Mysore-570006

Department of Studies &

Research in Economics
III-Semester M.A Economics
SEC-T: COMPUTER
FUNDAMENTALS TO
ECONOMICS-I

BLOCK
1
Introduction and operating System

UNIT-1 : Fundamentals to Computer

UNIT-2 : Computer Networking

UNIT-3 : Operating System

UNIT-4 : Spreadsheet (MS Excel)

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 CREDIT PAGE
Programme Name: M.A ECONOMICS Year/Semester: 3 rd SemesterBlock No:1-2
Course Name :Computer Fundamental to Economics-I (OE) Credit:02 Unit No:1-8
(Open Elective)
COURSE DESIGN EXPERT COMMITTEE
Prof.Sharanappa.V.Halse Chairman
Hon‘ble Vice-Chancellor
Karnataka State Open University
Mukthagangotri, Mysore-570006
Prof. Ashok Kamble Member
Dean (Academic)
Karnataka State Open University
Mukthagangotri, Mysore-570006
Dr.M.S.Ramananda, Associate Prof, DOS&R in Economics Member
Course Designer / Programme Co-Ordinator
Karnataka State Open University
Mukthagangotri, Mysore-570006
Dr.R.H.Pavithra Member
BOS Chairman / Department Chairman
DOS&R in Economics
Karnataka State Open University
Mukthagangotri, Mysore-570006
COURSE EDITORIAL COMMITTEE
Dr.R.H.Pavithra Chairman/Member Convener
BOS Chairman / Department Chairman
DOS&R in Economics, KSOU, Mysore
Dr.G.S.Premakumara Member
External Subject Expert/Prof. DOS&R in Economics UOM,
Sir M.V.P.G.Centre, Tubinakere, Mandya
Dr.M.S.Ramananda Member
Internal Subject Expert, Associate Prof. DOS&R in Economics, KSOU
COURSE WRITER
Dr.Neelakanta Unit:1 to 8
Assistant Professor DOS&R in Economics, Tumakuru University. Tumakuru.
COPYRIGHT
Registrar
Karnataka State Open University
Mukthagangotri, Mysore-570006
Developed by: The Department of Studis and Research in Economics, KSOU, under the guidance of
Dean (Academic), KSOU, Mysore as per UGC guidelines on SLM-CBCS.
Karnataka State Open University, January-2021
All rights reserved. No part of this work may be reproduced in a ny form, or any other means without
permission in writing from the Karnataka State Open University.
Printed and Published on behalf of Karnataka State Open University Registrar (Administration)-2021

3
 Unit-1: Fundamentals to Computer
Structure:

1.0 Objectives
1.1 Basic Components of Computer
1.2 CPU
1.3 Input Output Devices
1.3.1 Keyboard
1.3.2 Mouse and Scanner
1.3.3 Video Display
1.3.4 Printers and Plotters
1.3.5 Data Storage
1.4 Check your Progress
Answers to Check your Progress
1.5 Summary
1.6 Key words
1.7 Questions for Self-Study
1.8 Books for Reference

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1.0 Objectives
The student will be able to
1. Understand the basic components of computer.
2. Recognise the functions of CPU.
3. Differentiated the input and output devices.
4. Explains the application of input and output devices.
1.1 Basic Components of Computer
A computer device is composed of several components that aid in its efficient processing
and operation. The computer is made up of five fundamental parts that make data
processing simple and practical.
In this lesson, we'll talk about the fundamental parts of computers and how they work. Also,
in the section below this article, there are example questions based on this idea for
applicants studying computer knowledge for future competitive tests.
Components of a computer system are, by definition, the essential pieces that enable an
electronic device to perform more quickly and smoothly. There are five basiccomponents,
including:
 Input Unit: The hardware used to accept data from people is known as the input device,
or input unit, in computers. Input devices transform human-provided data into a format
that computers can interpret. A mouse, joystick, keyboard, scanner, etc. are some
examples of input devices.
 Output Unit: Any piece of computer hardware that transforms data into a form that can
be understood by humans or, historically, into a physical form that can be read by
machines to be utilized by other non-computerized devices is referred to as an output
device. Text, images, tactile elements, audio, and video are all acceptable.
 Memory Unit: A component of a computer system is the memory unit. It is employed
to store information, instructions, and data. A principal, primary, or intrinsic memory is
another name for it. Memory comes in two forms. ROM, or read-only memory, is a
component of the memory unit. This memory is read-only and cannot be used for
writing.The memory unit also includes random-access memory (RAM), which is used
to temporarily store programme data.
 Control Unit: The central processing unit of a computer has a component called the
control unit that controls how the processor functions. To transform coded instructions
into timing and control signals that govern the functioning of the other units, a CU

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 generally employs a binary decoder. The CU is in charge of most computer resource
management.
 Arithmetical and Logical Unit.The component of a central processing unit known as
an arithmetic-logic unit performs arithmetic and logic operations on the inputs in
computer instruction words. The ALU in certain processors is split into an arithmetic
unit (AU) and a logic unit (LU).

Diagram 1.1: Block Diagram of Computer

1.2 CPU:
The CPU is a computer system's processing unit. It processes the data and regulates how the
other units operate. Sometimes the CPU is referred to as the processor or, in the context of
personal computers, "microprocessor." The totality of the circuitry required to run a
software is contained in one integrated circuit. The processor executes arithmetic operations
(addition, multiplication, and so forth), logical operations (number comparison and
decision-making), and regulates the data transit between devices.
The component of CPU is a typical has three major components:

1. Control Unit (CU): It is the unit that manages all of the activities of the other units but
doesn't actually process any data. Data or instructions are sent between computer system
components through the control unit. It takes the commands from the memory, decodes
them, and then transmits the action to the different components as directed. In order to

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 send or receive the instruction from the storage units, the control unit must also
communicate with all input and output devices. Since it provides signals and determines
the order in which instructions should be carried out, the control unit serves as the
primary coordinator.
2. Arithmetic Logic Unit (ALU):ALU may be further broken down into two parts,
namely the arithmetic unit and the logic unit. It is a sophisticated digital circuit with
registers that can carry out arithmetic and logical operations. The addition, subtraction,
multiplication, division, and other arithmetic operations are carried out in the arithmetic
sections. By repeating the above simple actions, all additional complex operations may
likewise be carried out. The logic unit is in charge of carrying out logical operations
including contrasting, picking, matching, and combining various facts or information.
In essence, the ALU is the main component of the computer system that performs
various computations. The ALU's design influences how strong and effective the CPU
is.
3. Memory Unit: The memory unit is one of a computer system's parts. It is used to store
data, instructions, and information. It is also known as a principal, primary, or intrinsic
memory. There are two types of memory. The memory unit includes read-only memory,
or ROM. This memory can only be read from and cannot be written to. RAM, which is
used to temporarily store programme data, is also a component of the memory unit.
1.3 Input Output Devices:
A physical component with the capacity to take inputted, outputted, or other processed data
is known as an inputoutput (I/O) device. Also, it has the ability to obtain the appropriate
media data and transfer it to a computer as input or output for storage. Input and output
devices are also referred to as IO devices. The applications of some of the input and output
devicescan be understands as below.
1.3.1 Keyboard:
The keyboard is often used as a text entry interface to enter text, numbers, and symbols into
software applications like word processors, web browsers, and social networking apps. A
keyboard features a lot of keys, which are buttons. These keys are used to enter text into the
computer. Many keyboards have varying numbers of keys, however most typical keyboards
have around 105 keys. The functions of various keys vary.
The many kinds of keys include,Alphabet keys, Number keys, Special keys, Function keys.

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 Alphabet keys the alphabet keys are marked A to Z. There are 26 alphabet keys on the
keyboard. These are used to type letters, words, and sentences. Due to its first row of
letters Q W E R T Y, it is called a QWERTY keyboard.
 Number keys the number keys are placed above the alphabet keys and on the right side
of the keyboard. There are ten number keys marked 0 – 9. We use them to type numbers
on the screen. The numeric keypad on the right may only be used when the NumLock is
ON.
 Special keys Space bar – the space bar key is the longest key on the keyboard. We use it
to give space between numbers, letters, and words. Enter – there are two Enter keys on
the keyboard. This key is used to move the cursor to the next line. We also use this key
to give instructions to the CPU (Central Processing Unit) Backspace – this key is above
the enter key. We use it to erase mistakes to the left of the cursor. Caps Lock – this key
is used to type capital letters. When we press this key, the Caps Lock light turns ON.
When it is ON and you press an alphabet key, letters appear in upper case (capital).
When it is OFF, letters appear in lower case (small). Arrow – these keys are also called
cursor control keys or cursor moving keys. There are four of them to indicate directions
UP, DOWN, LEFT and RIGHT. They are used to move around a document without
using the computer mouse. Delete – this key erases mistakes to the right of the cursor.
Shift – this key is used to type special symbols (!, @, #, $, etc.) written on the upper
side of the number keys and some other keys. It is also used to type a single upper-case
letter or capital letter.
 Function keys These keys are used for different functions in different programs. These
are found at the top of the keyboard.
1.3.2 Mouse and Scanner:
A hand-held pointing device known as a computer mouse (plural: mice, often known as
mouses) is used to track motion in two dimensions in relation to a surface. The control of a
computer's graphical user interface is often made possible by translating this motion into the
movement of a pointer on a display.
The three primary categories of mouse devices are:
 Mechanical: Equipped with mechanical sensors and a trackball below the mouse for
effortless movement in all directions.
 Optomechanical: Similar to mechanical, except trackball movement is detected by
optical sensors as opposed to mechanical ones.

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 Optical:the costliest one, has no moving components, reacts more accurately than other
varieties, and uses a laser to detect mouse movement.
Given that it transmits data to the computer in the form of scanned images, a scanner is
regarded as an input device. Everything that is physically present, such as a piece of paper
or a photograph, will be converted into a digital format and then sent to your computer.
Usually linked to a computer, a scanner is a gadget. Its main job is to scan or take a photo of
the paper, digitize the data, and display it on the computer screen. The scanner's primary
function is to scan or take pictures of a document, digitizethe information, display it on your
screen, and store it on your connected computer.
Scanners often come in three different categories:
 Drum Scanner: A drum scanner divides the light from the target item into distinct red,
blue, and green beams optically to provide an accurate picture.
 Flatbed scanner: The object to be scanned is laid face down on a glass pane that is
irradiated by a strong light in a flatbed scanner.
 Handheld scanner: A handheld scanner is a manually operated instrument that is moved
across the surface of the target picture.
1.3.3 Video Display:
Video display refers to an output surface with a viewable area larger than four inches
diagonally that shows moving graphical images or a visual representation of image
sequences or pictures. It may also include, where appropriate, a device that is an integral
part of the display and cannot be easily removed from the display by the consumer and
produces the moving images. Cathode ray tubes, liquid crystal displays, gas plasma, digital
light processing, and other image projection techniques are frequently used in "video
displays."
1.3.4 Printers and Plotters:
Plotter is a tool that produces an image on the page after receiving orders from the
computer. A printer is a device that executes orders from a network and prints text and
graphics on a page. Cost-Effective. They are significantly more costly and less cost-
effective.
The Plotter is a tool that produces an image on the page after receiving orders from the
computer. A printer is a device that executes orders from a network and prints text and
graphics on a page. A plotter's output format is comparable to a vector graphics. A printer
produces images in the form of pixels, bitmaps, etc.

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Plotter types include, but are not limited to, inkjet, electrostatic, pen, flatbed, drum, and
other types. A few types of printers are 3D printers, inkjet printers, laser printers, LED
printers, home inkjet printers, and business inkjet printers.
1.3.5 Data Storage:
For existing or upcoming activities, digital information is recorded and preserved on
magnetic, optical, or mechanical media. Digital information comes in input data and output
data. The input data is supplied by users. Data output is provided by computers.Data is kept
in the form of files, which are what files kept in a filing cabinet are on a computer. Folders
and drives both include storage for files and folders. A storage device is a piece of
equipment that can keep data safe long after the computer has been turned off.
There are the 5 main types of storage devices,
 USB drive.
 Hard Disk.
 Floppy Disk.
 Compact Disc.
 Cloud Storage.
1.4 Check your Progress:
1. Which are the five basic components of computer.
2. Explain the block diagram of computer.
3. Explain the components of CPU.
4. Explain the applications of input and output devices.
5. Which are the types of storage devices.
Answers to Check your Progress:
1. 1.1
2. 1.1
3. 1.2
4. 1.3
5. 1.3.5
1.5Summary:
A computer device is composed of several components that aid in its efficient processing
and operation. There are five basic components, including, including input unit, output unit,
memory unit, control unit and Arithmetical and Logical Unit. The CPU is a computer
system's processing unit. It processes the data and regulates how the other units operate.
Sometimes the CPU is referred to as the processor or, in the context of personal computers,
"microprocessor." A physical component with the capacity to take inputted, outputted, or

10
other processed data is known as an input output (I/O) device. The keyboard is often used
as a text entry interface to enter text, numbers, and symbols into software applications like
word processors, web browsers, and social networking apps. A hand-held pointing device
known as a computer mouse (plural: mice, often known as mouses) is used to track motion
in two dimensions in relation to a surface. Video display refers to an output surface with a
viewable area larger than four inches diagonally that shows moving graphical images or a
visual representation of image sequences or pictures. The Plotter is a tool that produces an
image on the page after receiving orders from the computer. A printer is a device that
executes orders from a network and prints text and graphics on a page. Data output is
provided by computers. Data is kept in the form of files, which are what files kept in a filing
cabinet are on a computer. Folders and drives both include storage for files and folders.
1.6 Key words

 CPU - Central Processing Unit

 MU - Memory Unit
 CU - Control Unit
 ALU - Arithmetical and Logical Unit
1.7 Questions for Self-Study
1. Discuss the input and output devices.
2. Briefly discuss about the component of keyboard.
3. Differentiate between printer and plotter.
1.8Books for Reference
1. Rajasekaran, S. (1986), Numerical Methods in Science and Engineering
2. A. H. Wheeler, Allahabad Sanders D.H (1988) Computer Today, McGraw Hill (3rd
Edition New York)
3. Sinha P.K. (1992), Computer Fundamentals, BPB Publications, New Delhi.
4. Rajaraman, V. (1996), Fundamentals of Computers, Prentice Hall of India, New Delhi.
5. Dass and Singh (2006): Introduction to Computers, Shree Publishers and Distributors,
New Delhi.
6. Lipschultz, M.M and S. Lipschultz (1982), Theory and Problems of Data Outline Series,
McGraw Processing, Schaum's Hill, New York.
7. Intrilligator, M.D (1978), Econometric Models, Econometrics and Applications,
Prentice Hall Hanglowood Cliffs.
8. Wood, M.B. (1983), Introducing Computer Security, Broadman Associates, New Delhi.
9. Sanders, D.H. (1988): computers Today, McGraw Hill, New York.

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Unit-2: Computer Networking
Structure
2.0 Objectives
2.1 Introduction
2.2 Hardware
2.3 Software and Firmware
2.4 Floppy Disk and CD ROM
2.5 Concept of Data, Information, LAN, MAN and Internet
2.5.1 Data
2.5.2 Information
2.5.3 LAN
2.5.4 MAN
2.5.5 Internet
2.6 Check your Progress
Answers to Check your Progress
2.7 Summary
2.8 Key words
2.9 Questions for Self-Study
2.10 Books for Reference

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 2.0 Objectives:
The student will be able to
1. Recognise the meaning of Hardware -Software and Firmware, Floppy Disk and CD
ROM.
2. Able differentiate software and firmware.
3. Understands the meaning of data, Information, LAN, MAN and Internet.
4. Explains the Uses and Abuses of Internet.
2.1 Introduction:
Computer networking is the term for a network of connected computers that may
communicate and share resources. These networked devices communicate data through
wireless or physical technologies using a set of guidelines known as communications
protocols.
Computer networking's fundamental building components are nodes and connections. A
network node might be data terminal equipment (DTE), which includes two or more
computers and printers, or data communication equipment (DCE), which includes a
modem, hub, or switch. The transmission medium that connects two nodes is referred to as
a link. Links can be vacant spaces utilised by wireless networks or they can be physically
present, such cable lines or optical fiber.
The rules or protocols that specify how to transmit and receive electronic data across the
connections are followed by nodes in a functioning computer network. These physical and
logical components' designs are determined by the computer network architecture. It offers
the standards for the physical elements, operational structure, protocols, and practices of the
network.
In the late 1950s, the first computer networks were developed for use in defense and
military applications. They initially had limited commercial and scientific applications and
were used to transport data via telephone lines. The development of internet technologies
has made computer networks essential for businesses.
More than just connection is provided by contemporary network systems. They are essential
to modern company performance and the digital transformation of industries. Network
underpinnings now include more programmable, automated, and secure features.
2.2 Hardware:
Hardware describes the physical parts of the computer or its delivery mechanisms for the
software's written instructions to be stored and executed. The device's intangible

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component, the software, enables the user to communicate with the hardware and give
commands for particular actions to be taken.
The term "hardware" describes the actual components of a computer. sometimes known as
computer hardware or computer machinery. Examples of computer hardware include the
keyboard, display, mouse, and processor unit. Most of the a computer's hardware, which is
located inside the computer chassis, cannot be seen, though.
A computer system's input, processing, storage, output, and communication devices are its
five basic hardware constituents. There are several basic components of computer hardware
including:

1. Central Processing Unit (CPU)

2. Mother Board
3. Random Access Memory (RAM)
4. Video Graphics Array Port
5. Power Supply
6. Cooling Fan
7. Hard drive
8. Monitor
9. Printer
10. Scanner
11. Computer Mouse
Your programme could not function properly or at all if the appropriate hardware isn't used.
When choosing your IT systems, it's crucial to take both factors into account since they may
have an impact on how you work, how productive you are, and how much money your
company makes.
2.3 Software and Firmware:
Software is a collection of instructions, data, or computer programmes that are used to run
machines and carry out particular activities. It is the antithesis of hardware, which refers to
a computer's external components. A device's running programmes, scripts, and
applications are collectively referred to as "software" in this context.
Software may make your organisation run more effectively in addition to enabling your
computer hardware to execute crucial functions. Even new working methods can be

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developed with the correct software. Because of this, it is a vital corporate asset, and you
should carefully select your software so that it meets your demands.
Software Device refers to any device on or by which computer software and its
accompanying visual pictures, with or without sound, may be embodied or recorded for use
with the Game Machine and later operation, manipulation, or transmission to users.
System software and application software are the two primary subcategories of software.
Software that carries out specific activities or satisfies needs is called an application
software. System software is created to run the hardware of a computer and provide a
foundation for programmes to run on. The software, which gathers data and information, is
a system necessity. It makes use of this information to direct a computer system to behave a
certain manner. On the other hand, a software programme known as an application helps
users carry out certain tasks on their device.
Firmware is software that offers fundamental machine instructions so that hardware may
operate and interact with other programmes that are installed on a device. Hardware on a
device may be controlled at a low level by firmware. Hardware and software are not the
same as firmware. The central processing unit's instructions were not contained in it (CPU).
Instead, it makes use of a microcode that executes machine instructions at a lower level.
The term "firmware" refers to the interface between hardware and software.
While "software" often refers to something you can interact with, such as an operating
system or application, firmware is a form of low-level software that is frequently more
directly related to the functioning hardware. Primary programming languages for writing
firmware are Java, and Python. This is a crucial component of your laptops, smartwatches,
GPS units, cellphones, etc. it serves as a bridge between the hardware and software and is
included into flash memory chips. The differences between Software and Firmware as
follows.
Sl.No Software Firmware
Software is often a collection of Typically, firmware is a sort of
1
instructions for a computer. software that controls hardware.
Software (application software)
Low-level software called firmware
doesn't directly interact with
2 sits in between hardware and the
hardware; instead, it runs on top of
operating system.
the operating system.

15
 The size of the software is very big
The firmware size is very small
and generally ranges between
3 and generally ranges between a
hundred kilobytes (KB) to a few
few kilobytes (KB).
gigabytes (GB).
Updating of software‘s are very Updating firmware‘s usually
4
easier. tricky.
Firmware memory is inaccessible
Software memory is accessible and
5 and cannot be altered simply by
changeable.
the user.
Features of firmware includes
Features of software includes
perfect rotation counter support,
6 efficiency, usability, functionality,
floating point variable, perform all
dependability, etc.
control, etc.
2.4 Floppy Disk and CD ROM:
A floppy disc, often known as a floppy diskette, is a dated kind of disc storage that consists
of a thin, flexible disc made of a magnetic storage media inside of a square or nearly square
plastic case that is coated with fabric to keep the spinning disc clean. During the 1980s and
1990s, floppy discs were widely used with personal computers to transmit data, distribute
software, and generate backups. Floppy discs were frequently used to store an operating
system (OS) on a computer before hard drives were accessible to the general public.
There are three types of floppy disk,
 8-inch floppies.
 5.25-inch floppies.
 3.5-inch floppies.
The floppy disk is a removable magnetic storage medium. Floppy disks are used for moving
information between computers, laptops or other devices. Some early digital cameras,
electronic music instruments and older computer game consoles use floppy disks.
A CD-ROM is a kind of read-only memory made up of a data-filled optical compact disc
that has been pre-pressed. CD-ROMs can be read by computers, but not created or deleted.
By the world bank definition ―A CD-ROM (Compact Disk Read Only Memory) is an
asynchronous too. It is an optical disc that is physically the same as an audio CD but
contains data that can only be read from a CD-ROM drive in a computer. Key
Characteristics. A CD-ROM allows for a large amount of storage on an inexpensive,
portable medium.‖

16
CD-ROM stands for Compact Disc-Read Only Memory. It is used for storage of Secondary
memory or secondary storage. Other secondary storage devices include magnetic disks,
magnetic tapes etc.
A typical compact disc has the following dimensions: it is 4.7 inches (120 mm) broad, 1.2
mm thick, weighs between 15 and 20 grammes, and can hold 80 minutes of audio or 650–
700 MB of data.
2.5 Concept of Data, Information, LAN, MAN and Internet:
2.5.1 Data:
Data is information that has been transformed into a format that is useful for transfer or
processing in computers. Data is information that has been transformed into binary digital
form for use with modern computers and communication mediums. The topic of data may
be used in either the single or the plural. Data is information that has been transformed into
a format that is useful for transfer or processing in computers. Data is information that has
been transformed into binary digital form for use with modern computers and
communication mediums. The topic of data may be used in either the single or the plural.
Data in its most basic digital form is referred to as "raw data." Data is an individual unit that
contains raw materials which do not carry any specific meaning.
2.5.2 Information:
Information is a stimulus that has meaning for the recipient in a particular situation. Data is
the broad term used to describe information that is input into and stored in a computer. Data
that has undergone processing, such as formatting and printing, can once more be
interpreted as information. The main types of data that can be input into a computer and
processed are numeric, text, dates, graphics, and sound.Information is a group of data that
collectively carries a logical meaning.
2.5.3 LAN:
A local area network is a type of computer network that links computers in a specific
location, like a home, business building, school, lab, or university campus. In contrast, a
wide area network typically uses leased telecommunications lines in addition to covering a
greater geographic region. A local area network, or LAN, is a collection of linked
computers in a constrained space that share a single Internet connection.The goal of a LAN
is to connect computers in a specific area and provide shared access to printers, file servers,
and other services.

17
2.5.4 MAN:
Metropolitan Area Network is known by the abbreviation MAN. Wide Area Network,
or WAN, is what it stands for. Meaning and Definition. A local area network, or LAN, is a
system that typically links a few computers together in a certain region. A network that
spans vast areas, such as cities and towns, is known as MAN.
A metropolitan area network, or MAN, is a bigger network that primarily serves urban
areas. MAN was once used to join several LANs in one area. A MAN is an example of the
IUB network. Another example of a MAN is a cable for a television. Networks with fast
data connections are constructed for cities and towns using MANs. A MAN operates
similarly to an Internet Service Provider (ISP), except it is not controlled by a single
company.
2.5.5 Internet:
In 1849, the word "internetted," which means linked or interwoven, was first used. The
United States Army Department first used the term "Internet" in a radio operator's manual
in 1945, and it was first used as the abbreviation for "Internetwork" in 1974.The Internet,
sometimes known as "the Net," is a global system of computer networks. It is a network of
networks that allows users at any one computer to obtain information from any other
computer with permission. There are several forms of internet, which is a network of
networks. It is made up of a vast array of electrical, wireless, and optical networking
technologies that connect local to worldwide public, commercial, academic, business, and
government networks.
The following are the uses of Internet:
 Social Networking. There is no doubt that social networking sites are the most popular
use of the internet
 Online Shopping
 Online Banking
 Education and Upskilling
 Gaming
 Trading
 Dating
 Email Communication.

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The following are the Abuses of Internet
 Cyberbullying is when someone bullies or intimidates someone online.
 Cybercrime is the illicit use of computers.
 Live streaming of forced sexual activities, rape, and cybersex trafficking.
 Malware, which includes computer viruses, is software intended to damage a user's
computer.
 sending unsolicited advertisements, or spam.
2.6 Check your Progress:
1. Name the components of computer Hardware.
2. What are the difference between software and Firmware
3. Write About Floppy Disk and CD ROM
4. Briefly write About Data, Information, LAN, MAN
5. Discuss About Use and Abuses of Internet
Answers to Check your Progress:
1) 2.2
2) 2.3
3) 2.4
4) 2.5
5) 2.5.5
2.7Summary:
Computer networking is the term for a network of connected computers that may
communicate and share resources. These networked devices communicate data through
wireless or physical technologies using a set of guidelines known as communications
protocols.Hardware describes the physical parts of the computer or its delivery mechanisms
for the software's written instructions to be stored and executed. The device's intangible
component, the software, enables the user to communicate with the hardware and give
commands for particular actions to be taken.
Software is a collection of instructions, data, or computer programmes that are used to run
machines and carry out particular activities. It is the antithesis of hardware, which refers to
a computer's external components.Firmware is software that offers fundamental machine
instructions so that hardware may operate and interact with other programmes that are
installed on a device. Hardware on a device may be controlled at a low level by firmware.
Hardware and software are not the same as firmware.Primary programming languages for

19
writing firmware are Java, and Python.A floppy disc, often known as a floppy diskette, is a
dated kind of disc storage that consists of a thin, flexible disc made of a magnetic storage
media inside of a square or nearlyA CD-ROM is a kind of read-only memory made up of a
data-filled optical compact disc that has been pre-pressed. square plastic case that is coated
with fabric to keep the spinning disc clean.
Data is information that has been transformed into a format that is useful for transfer or
processing in computers.Information is a stimulus that has meaning for the recipient in a
particular situation.A local area network is a type of computer network that links computers
in a specific location, like a home, business building, school, lab, or university campus.The
technology that links your offices, data centers, cloud apps, and cloud storage is known as a
wide-area network (WAN).The Internet, sometimes known as "the Net," is a global system
of computer networks. It is a network of networks that allows users at any one computer to
obtain information from any other computer with permission. There are several forms of
internet, which is a network of networks.
2.8Key words:
 CPU - Central Processing Unit
 RAM - Random Access Memory
 KB - Kilobytes
 GB - Gigabytes
 CD-ROM - Compact Disk Read Only Memory
 LAN - Local Area Network
 MAN - Metropolitan Area Network
2.9 Questions for Self - Study:
1. Briefly discuss About the Computer Networking
2. Write about Software and Firmware
3. Differentiate between Floppy Disk and CD ROM
2.10Books for Reference:
1. Rajasekaran, S. (1986), Numerical Methods in Science and Engineering
2. A. H. Wheeler, Allahabad Sanders D.H (1988) Computer Today, McGraw Hill (3rd
Edition New York)
3. Sinha P.K. (1992), Computer Fundamentals, BPB Publications, New Delhi.
4. Rajaraman, V. (1996), Fundamentals of Computers, Prentice Hall of India, New Delhi.

20
5. Dass and Singh (2006): Introduction to Computers, Shree Publishers and Distributors,
New Delhi.
6. Lipschultz, M.M and S. Lipschultz (1982), Theory and Problems of Data Outline Series,
McGraw Processing, Schaum's Hill, New York.
7. Intrilligator, M.D (1978), Econometric Models, Econometrics and Applications,
Prentice Hall Hanglowood Cliffs.
8. Wood, M.B. (1983), Introducing Computer Security, Broadman Associates, New Delhi.
9. Sanders, D.H. (1988): computers Today, McGraw Hill, New York.

21
 Unit-3: Operating System

Structure
3.0 Objectives
3.1 Introduction
3.2 MS office Utilities
3.3 Components of the Windows Operating System (Desktop, Different)
3.4 Check your Progress
Answers to Check your Progress
3.5 Summary
3.6 Key words
3.7 Questions for Self-Study
3.8 Books for Reference

22
3.0 Objectives
1. Student will be able to recognise the meaning of Operating system.
2. Able to describe the types and key features of operating system.
3. Student could able to describe M.S Office Utilities
4. Student able to elaborate the components of windows operating system.
3.1 Introduction to operative system:
An operating system (OS) is the software that controls all other application programmes in
a computer after being installed into the system first by a boot programme. Using a
specified application programme interface (API), the application programmes seek services
from the operating system. An operating system is a piece of system software that controls
hardware and software resources on a computer and offers standard services to applications
running on it.
The computer's operating system (OS) controls all of the hardware and software. It carries
out fundamental duties such processing input and output, managing files, memory, and
processes, and managing peripheral devices like disc drives and printers.
Examples of operating systems that let users utilise applications like Microsoft Office,
Notepad, and games on a computer or mobile device include Windows, Linux, and
Android. Running essential apps like browsers need at least one operating system to be
installed on the machine.
The most crucial piece of computer software is the operating system. It manages the
hardware, software, memory, and operations of the computer. The CPU, memory, and
storage of the computer are all used by the several applications that are often running at
once.
Types of Operating System (Windows XP):
the following are the two types of operating system.
1. Single user operating system for example DOS, Windows 95/97/, Windows
XP/Windows 10
2. Multiuser Operating system for UNIX and LINUX
Each computer you buy often comes pre-loaded with an operating system. The default
operating system that comes with computers is used by the majority of users, however it is
possible to update or even switch operating systems. Microsoft Windows, macOS, and
Linux are the three most popular operating systems for personal computers.

23
Microsoft created the Windows operating system in the mid-1980s. There have been many
different versions of Windows, but the most recent ones are Windows10 (released in
2015), Windows8 (2012), Windows 7 (2009), Windows Vista (2007) Windows XP (2001).
Windows comes pre-loaded on most new PCs, which helps to make it the most
popularoperatingsystem in the world.
We may utilize a number of apps on your computer, frequently concurrently, thanks to the
graphical user interface (GUI) and operating system Windows XP. Windows XP is a unique
software application all by itself that transmits your commands to the real hardware of the
machine and shows the outcomes.
Some of the Key Features of Windows XP are as under:
The Desktop: On Windows XP, you have access to all of your needs through the Desktop.
It takes up the full screen and cannot be resized like a window. The desktop is made up of a
coloured or patterned backdrop with tiny images, known as icons, that stand in for certain
programmes or data sources. A application or file associated with an icon is opened by
double clicking it inside a window.
Windows within Windows: An area of the screen that is rectangular and used to see
programme directories and files as well as to show file contents such papers, spreadsheets,
and graphic pictures is referred to as a window. A window can take up a certain portion of
the screen, be maximised to take up the full screen, or be minimised so that it is no longer
visible but still active and accessible.
The Taskbar: At the bottom side of your screen is the Taskbar. All the applications, files,
and other functionality on your computer are accessible through the Start button on the left.
Even if an application has been minimised and is no longer visible on your screen, a similar
rectangular icon will appear on your taskbar whenever you launch a file or programme. Just
click the program's icon in the taskbar to launch it.
The Start menu: By clicking the Start button, a menu of options appears. Depending on
how your computer is set up and what apps you use the most regularly will affect the
contents. There is a list of every application installed on your computer, including those
without desktop icons, if you select the All Programs option.
Logging in and out:The UCT labs' computers are all connected to a network. Before using
a computer, you must log in so that the system can recognise you as an authorised user. You
can view your files even if you produced them on a separate computer after you've logged
in.

24
Working with multiple windows: One of the most important features of Windows XP is
its multitasking capability. This allows you to run more than one application at the same
time. What‘s more, within one application you could have several files open, each in its
own window. For example, you might have both MSWord and MS Excel open at the same
time, and within MS Word you might be working on two different document files, each in
its own window.
Title bar:The title bar, which is the first line of the window, shows the name of the
associated application or folder. By dragging the title bar of an open window, you may
relocate it to a new location on the screen. If there are many windows open on the screen,
clicking on one of them will make that window active, as shown by a darker title bar.
Navigating inside a window: Use the Scrollbar at the bottom or right side of the window to
view additional information if you can't see it all. The arrows at each end of a scroll bar can
be used to "move" the contents of a window; for instance, clicking on the bottom arrow on a
vertical scroll bar will disclose content that is below the window's bottom boundary. As an
alternative, you may slide the Scrollbox inside the scrollbar to view the window's hidden
parts.
Windows Explorer: The file management programme that comes with Windows XP is
called Windows Explorer. You may use it to rename, copy, transfer, or remove the folders
and data on the hard discs of your computer. Within Windows Explorer, folders and files
are shown in a hierarchical manner. Files and subfolders can both be found in folders.
3.2 MS office Utilities:
Microsoft Office is a suite of applications designed to help with productivity and
completing common tasks on a computer. It contains a word processor (Word), a
spreadsheet program (Excel) and a presentation program (PowerPoint), an email client
(Outlook), a database management system (Access), and a desktop publishing app
(Publisher).
Word: Word is used as a word processing and integrating tool. It is typically used to
draught letters, business proposals, and reports because to its fantastic grammar and spelling
checking capability. Also, one may create, store, connect to, and share material in it.
Access: Access enables the creation of logical databases from imaginary to virtual objects,
including websites, credit cards, and phone systems.
Outlook: Almost all businesspeople utilise this function to remain in touch with their
clients and customers via contact, email, calendar, etc.

25
Publisher: Creating new publications and templates is a well-known use of this software.
One note: The sophisticated search feature makes it easier to compile all pertinent
Remarks.
3.3 Components of the Windows Operating System (Desktop, Different
Type of Menu, Taskbar, Control Panel, Accessories):
We will now explore the key elements of Windows after learning about the Introduction to
Windows. The following are the primary components of the Windows Operating System
are Desktop, Different type of Menu, Taskbar, Control Panel, Accessories.
3.3.1 Desktop:The desktop is the virtual workspace offered by Microsoft Windows that
resembles a real desktop. A work space and taskbar are included. The workspace could
encompass many displays. The Windows desktop has the following program accesspoints.
 Work Area: the region of the computer screen where users may work and save
applications, papers, and shortcuts. Although the taskbar is technically a part of the
desktop, in most instances it just relates to the work area.
 Start Button: The hub for all applications and unique Windows locations (Documents,
Photos, Music, Games, Computer, Control Panel), with "most frequently used" lists for
rapid access to recently used files and programmes.
 Quick Launch: a direct entry point to the user-selected apps.
 Taskbar: the entry point for active desktop-presence apps. Although the taskbar
technically includes the full bar between the Start button and the notification area, most
often the term "taskbar" refers to the region holding the taskbar buttons in the middle.
The taskband is another name for this region.
 Notification area: a quick access point for system and program-related functions that
are not present on the desktop, as well as a source for notifications and status.
3.3.2 Different type of Menu:
The area of a browser or application window known as the menu bar, which is normally
found at the upper left corner, contains drop-down menus that let users interact with the
programme or content in a variety of ways.
 Pop up Menu: When a user right-clicks on a particular option, a pop-up menu, often
referred to as a context menu or shortcut menu, is concealed and does not initially
display. When the user clicks on an item, the menu displays above the programme and
is set to a vertical orientation. After that, it vanishes from the screen.

26
 Pop-up menus in Windows environments can be opened manually or automatically by
right-clicking the mouse. In the latter scenario, the menu is connected to a window or
control, allowing for the creation of several pop-up menus per window or control.
 Pop-up advertising, which frequently surface on some commercial websites, should not
be confused with pop-up menus.
 Graphical drop-down menu: A list of new things appears when you click on an item
in a graphical drop-down menu, which might be text, a button, or an icon. Clicking on
text such as "File" or "Edit" in the horizontal list at the top of the screen in a Windows
application is one way to view an example. The function specified by the item will be
carried out automatically if there are no sub-items.

 Cascading menu: One of the most popular menu systems for operating systems, apps,
and websites is the cascading menu. When an item on the main menu is chosen,
submenus are shown.
 No matter which option is chosen, the Programs submenus of the Start menu start to
cascade to the right on earlier Windows versions like Windows XP. If you choose the
Accessories menu, for instance, a submenu with choices for Communications,
Entertainment, Gaming, and Calculator will appear. Any of these items can be clicked
to reveal a new submenu that will appear to the right.
 Pull-down menu: The pull-down menu, sometimes referred to as a drop-down menu, is
a common option for GUIs. The menu items seem to descend down from that place and
appear on the screen when a user clicks on a menu title. The needed choice may then be
chosen by users by selecting the menu item or depressing the mouse button.
 Moving bar menu: The user chooses choices in a moving bar menu by dragging a
highlighted bar across them. The arrow keys or Tab key on a keyboard can also be used
to move the menu bar.
 Tear-off menu: The menu in a tear-off menu can be relocated from where it was
initially displayed to another location on the screen. The top of the window's menu is
typically shifted to the left, right, or bottom of the same window.
3.3.3 Task Bar: A button for each page of each active programme may be seen on the main
Taskbar. An option to restore, maximise, or shut that window will appear if you Right Click
on one of the buttons. Right-click on any empty spot on the Taskbar to modify it.

27
The entry point for desktop-based apps is the taskbar. Users may issue instructions, access
resources, and see programme status straight from the taskbar thanks to new functionality
included to Windows. Even though an application is minimised, it may still be accessed
from the taskbar since it is visible on the desktop.
The space between the start menu and the icons to the left of the clock is known as the
taskbar. It displays the open programmes on your computer. Just click a program's icon in
the Taskbar to make it the current window while switching between them.
The Start button, which launches the Start menu, is one of the Taskbar's three primary parts.
condition of certain software and computer settings. Windows produces a button for each
application, folder, or file you open in the center of the taskbar. The button displays an icon
for the currently active programme.
3.3.4 Control Panel: Microsoft Windows has a feature called Control Panel that allows
users to examine and modify system settings. It consists of a collection of applets for
modifying accessibility settings, installing or deleting devices and software, managing user
accounts, and accessing networking settings.
An interface that uses graphics to manage settings and functions is called a control panel.
They may be used to customise both software and the operating system itself and are
frequently encountered in the context of native programmes on desktop or mobile operating
systems.

 Physical control panel: The physical control panel is your initial interface with the
system.

 Remote control panel: The remote-control panel provides a way to use control panel
functions through a PC.
3.3.5 Accessories:
Window accessories are a collection that includes the many kinds of tools available for
various uses. It is a crucial component of windows. Every version of Windows supports it.
In this category, many tools are available.
The Windows operating system comes with a few useful programmes referred to as
Windows accessories. Some of the most often utilised attachments are a calculator, notepad,
paint, explorer, and word processor. Windows also provides a few tools for Ease of Access
and several System Tools in addition to the aforementioned apps.

28
3.4Check your Progress:
1. Write about Operative System.
2. Explain About the key features of Windows XP
3. Name MS office utilities.
4. Explain about the components of Windows Operating system
Answers to Check your Progress:
1) 3.1 2) 3.2 3) 3.3 4) 3.4
3.5 Summary:
An operating system (OS) is the software that controls all other application programmes in
a computer after being installed into the system first by a boot programme. The computer's
operating system (OS) controls all of the hardware and software. Examples of operating
systems that let users utilise applications like Microsoft Office, Notepad, and games on a
computer or mobile device include Windows, Linux, and Android.
The two types of operating systemare,

 Single user operating system for example DOS, Windows 95/97/, Windows XP
 Multiuser Operating system for UNIX and LINUX
Some of the Key Features of Windows XP are The Desktop, Windows within Windows,
The Taskbar, The Start menu, Logging in and out, Working with multiple windows, Title
bar, Navigating inside a window, Windows Explorer etc.
Microsoft Office is a suite of applications designed to help with productivity and
completing common tasks on a computer. It contains a word processor (Word), a
spreadsheet program (Excel) and a presentation program (PowerPoint), an email client
(Outlook), a database management system (Access), and a desktop publishing app
(Publisher). primary components of the Windows Operating System are Desktop, Different
type of Menu, Taskbar, Control Panel, Accessories.
3.6 Key words:
 O.S - Operating System
 API - Application Programme Interface
 GUI - graphical user interface (GUI)
3.7 Questions for Self - Study:
1. Examine the various types of Operating System
2. Critically examine components of windows operating system

29
3.8 Books for Reference:
1. Rajasekaran, S. (1986), Numerical Methods in Science and Engineering
A.H. Wheeler, Allahabad Sanders D.H (1988) Computer Today, McGraw Hill (3rd Edition
New York)
2. Sinha P.K. (1992), Computer Fundamentals, BPB Publications, New Delhi.
3. Rajaraman, V. (1996), Fundamentals of Computers, Prentice Hall of India, New Delhi.
4. Dass and Singh (2006): Introduction to Computers, Shree Publishers and Distributors,
New Delhi.
5. Lipschultz, M.M and S. Lipschultz (1982), Theory and Problems of Data Outline Series,
McGraw Processing, Schaum's Hill, New York.
6. Intrilligator, M.D (1978), Econometric Models, Econometrics and Applications,
Prentice Hall Hanglowood Cliffs.
7. Wood, M.B. (1983), Introducing Computer Security, Broadman Associates, New Delhi.
8. Sanders, D.H. (1988): computers Today, McGraw Hill, New York.

30
Unit-4: Spreadsheet (MS Excel)

4.0 Objectives
 Student will able to understand the basics of Spreadsheet
 He will describe the functions of spreadsheet
 He will recognize the various type of charts
 He will understand about the sorting and filtering of data
 He learns about the MS word and Power point
4.1 Introduction to Spreadsheet (MS Excel) Basic:
A piece of the Microsoft Office software is MS-EXCEL. It is an electronic spreadsheet with
many rows and columns that is used to organise data, depict it graphically, and carry out
various calculations. Users can format, arrange, and compute data in a spreadsheet using
Microsoft Excel. Data analysts and other users can organise data using programmes like
Excel to make information easier to read as data is added or altered. In Excel, there are
many boxes known as cells that are arranged in rows and columns. Computer programmes
that adore numbers and mathematics include spreadsheets. For the Apple personal
computer, the first electronic spreadsheet was developed in 1979 under the name Visicalc,
which stands for "visual calculator."

The main uses of Excel include:

 Data entry.
 Data management.
 Accounting.
 Financial analysis.

31
 Charting and graphing.
 Programming.
 Time management.
 Task management.
Microsoft Excel is a spreadsheet programme that employs tables to record and analyse
numerical and statistical data using formulae and functions, according to its official
description.
Simply said, MS Excel is a robust spreadsheet application that comes with Microsoft Office
and is primarily used to enter data into tables.
4.2 Spreadsheet (MS Excel) Function:
A spreadsheet is a piece of software that you can use to quickly execute mathematical
operations on statistical data, add up many columns of numbers, or calculate averages and
percentages.
The three most typical general uses of spreadsheet software are to make graphs and charts,
store and organise data, and construct budgets. Spreadsheet software is used in company to
anticipate future performance, compute taxes, finish simple payroll, create charts, and
determine revenues. Some of the functions of excel are listed below.
Enter text and numbers in a spreadsheet
 Enter Excel formulas
 Format data
 Create Excel functions
 Fill cells automatically
 Print results
 Create Charts, and
 Enter advanced Excel formulas
4.3 MS-Chart
Graphs and charts condense a lot of information into simple formats that effectively and
simply explain key themes.
A column chart can be used to visualise data that is set up in columns or rows on an Excel
sheet. In column charts, values are normally arranged along the vertical axis while
categories are often arranged along the horizontal axis. Column charts can be used to
compare different things or to demonstrate how data evolves over time.

32
You can use a chart as a tool to visually express information. You can make numerical data,
such as comparisons and trends, easier for the reader to understand by using a chart in your
paper. Download our practice document if you wish.
4.4 Sorting and Filtering of Data
You sort data to swiftly organise it and locate the info you're looking for. For one or more
columns of data, you filter the information so that it only shows the rows that match the
criteria you define and hides the rows you don't want to be shown. Filtering and
sorting allow us to extract and view the specific data that meet the criteria while hiding
those that do not.
4.4.1 Sorting:Sorting is the term used in data structures to describe the arranging of data in
a desired order. Data may be more rapidly and readily searched through by being sorted. A
dictionary is the simplest sorting example.
The effectiveness of other algorithms (like search and merge algorithms) that need input
data to be in sorted lists must be maximised, hence efficient sorting is crucial. Additionally,
canonicalizing data and creating output that is intelligible by humans also benefit from
sorting.

33
Records are sorted by their keys using sorting algorithms that work with records. For
instance, addresses might be arranged by last names. Records that have been organised
more broadly based on a crucial feature, such as the signature (ascending character order) of
dictionary terms.
The techniques of sorting can be divided into two categories. These are, Internal Sorting.
External Sorting. The ability to organise and sort information is a crucial cognitive talent.
Your child will learn to classify, recognise similarities and differences, and it will help them
build their early reading and numeracy abilities.
This is because it has a large efficiency benefit because it can handle a long list of objects
with ease. No extra storage is needed because it sorts in place.
Any procedure that includes placing the data in a meaningful order to facilitate
understanding, analysis, or visualisation is considered data sorting. Sorting is a popular
technique used when dealing with research data to visualise data in a way that makes it
simpler to understand the story the data is saying.
4.4.2 Filtering:Examining a dataset to remove, reorganise, or distribute data in accordance
with certain criteria is known as data filtering. For instance, data filtering can entail
calculating the total number of sales for each quarter and excluding entries from the
previous month.
Data that has been filtered shows just the rows that match the criteria you provide and
conceals the rows you do not wish to be shown.
You could discover that, in addition to sorting, using a filter improves the analysis of your
data. Only the rows that match the filter criteria will be visible when data is filtered; all
other rows will be hidden. You may then copy, format, print, etc., your data with filtered
data without having to first sort or relocate it.The two options for data filtering are the auto
filter and the advanced filter.
In Access databases, filtering is a helpful approach to display only the data you want to
view. You may use filters to only print particular records from a report, table, or query, as
well as to display specified records in a form, report, query, or datasheet.
A filter is a programme or chunk of code used in computer applications that checks each
input or output request for a set of qualifying criteria before processing or forwarding it.

The appropriate response is firewall. A firewall is a device that shields a private network
from unauthorised access. It is a sort of cybersecurity technology used to control network
traffic.

34
4.5 MS-Word
The most recent Microsoft product, MS-Office, is primarily intended for home, office, and
development PC users. This product was formerly released by Microsoft in versions such as
Office 4.3, Office 95, Office 97, Office 2000, Office 2002 XP Professional, Office 2003,
Office 2016 and the most recent Office 2021. Every version was released with some brand-
new, advanced features. The offered versions mostly depend on the needs of users at
various levels. The MS Office component software is listed as follows:
 MS-Access
 MS-Excel
 MS-Outlook
 MS-Power Point
 MS-Publisher
 MS-Word

Any office starts with formal tasks, of which paperwork makes up more than half of the job
effort. The complete preparation for word processing in an office was once done on a
typewriter in order to produce a great output, but today the entire typewriter generation has
been replaced by computers and word processing software. A word processor is a word
processing programme that has all of the capabilities and features required for any type of
documents. In these situations, word processing software is characterised as programme
that aids in document creation and editing. Desktop publishing is a phrase that is frequently
used in conjunction with word processing. A professional's work may be shown through the

35
use of tools like MS Word that integrate text, page, and graphic capabilities.As a result, the
word "desktop publishing" refers to the entire procedure of entering information, adding
graphics and images, creatively arranging the pages, and sending it directly to a printer.
Using a desktop computer, everything is completed. Manual work isn't an option.
4.6 MS-PowerPoint
A capable programme for creating slide shows is Microsoft PowerPoint. It comes packaged
with Word, Excel, and other office productivity tools as part of the company's Microsoft
Office suite software. Slides are used in the programme to present multimedia-rich
information.
Microsoft PowerPoint, more often known as the PowerPoint, is a piece of software
designed to help users create compelling presentations. It belongs to the Microsoft Office
collection. The software includes presentations as well as numerous text editing, drawing,
graphing, and outlining capabilities.

PPT stands for PowerPoint Presentations, which are visual displays of information,
processes, or a series of actions.
 Using a template or from scratch, create presentations.
 Include text, pictures, artwork, and videos.
 Using PowerPoint Designer, pick a polished layout.
 Cinematic motion, transitions, and animation should be added.

36
 To access your presentations from a computer, tablet, or phone, save them to OneDrive.
 Share your work and the work of others with everyone.
Ms Word creates text based documents and MS PowerPoint creates presentation. Users use
Ms Word when they need to make reports, letters, while MS PowerPoint is used when they
have to make presentations. Ms work use for office work data storage and Ms PowerPoint
use for slide and presentation graph etc.
4.7 Check your Progress:
1. Write about the spread sheet (MS Excel) basics
2. Explains about the function of Spreadsheet.
3. Discuss about the Sorting and filtering of data
4. Discuss about the components of MS word and MS Power point
Answers to Check your Progress:
1) 4.1 2) 4.2 3) 4.4 4) 4.5 & 4.6
4.8 Summary:
A piece of the Microsoft Office software is MS-EXCEL. It is an electronic spreadsheet with
many rows and columns that is used to organise data, depict it graphically, and carry out
various calculations.Simply said, MS Excel is a robust spreadsheet application that comes
with Microsoft Office and is primarily used to enter data into tables.The three most typical
general uses of spreadsheet software are to make graphs and charts, store and organise data,
and construct budgets. Spreadsheet software is used in company to anticipate future
performance, compute taxes, finish simple payroll, create charts, and determine revenues.
A column chart can be used to visualise data that is set up in columns or rows on an Excel
sheet. In column charts, values are normally arranged along the vertical axis while
categories are often arranged along the horizontal axis. Column charts can be used to
compare different things or to demonstrate how data evolves over time.
You sort data to swiftly organise it and locate the info you're looking for. For one or more
columns of data, you filter the information so that it only shows the rows that match the
criteria you define and hides the rows you don't want to be shown. Filtering and
sorting allow us to extract and view the specific data that meet the criteria while hiding
those that do not.
The most recent Microsoft product, MS-Office, is primarily intended for home, office, and
development PC users. This product was formerly released by Microsoft in versions such as

37
Office 4.3, Office 95, Office 97, Office 2000, Office 2002 XP Professional, Office 2003,
Office 2016 and the most recent Office 2021.
Microsoft PowerPoint, more often known as the PowerPoint, is a piece of software
designed to help users create compelling presentations. It belongs to the Microsoft Office
collection. The software includes presentations as well as numerous text editing, drawing,
graphing, and outlining capabilities.
4.9 Key Words
Microsoft PowerPoint - A capable programme for creating slide shows is Microsoft
PowerPoint. It comes packaged with Word, Excel, and other office productivity tools as
part of the company's Microsoft Office suite software.
Microsoft Excel – It is a spreadsheet programme that employs tables to record and analyse
numerical and statistical data using formulae and functions, according to its official
description
4.10 Questions for Self - Study:
1. What are the main uses of Excel
2. Write about the functions of Excel
3. Explain about the different types of charts
4.11 Books for Reference:
1. Rajasekaran, S. (1986), Numerical Methods in Science and Engineering
A.H. Wheeler, Allahabad Sanders D.H (1988) Computer Today, McGraw Hill (3rd
Edition New York)
2. Sinha P.K. (1992), Computer Fundamentals, BPB Publications, New Delhi.
3. Rajaraman, V. (1996), Fundamentals of Computers, Prentice Hall of India, New Delhi.
4. Dass and Singh (2006): Introduction to Computers, Shree Publishers and Distributors,
New Delhi.
5. Lipschultz, M.M and S. Lipschultz (1982), Theory and Problems of Data Outline Series,
McGraw Processing, Schaum's Hill, New York.Intrilligator, M.D (1978), Econometric
Models, Econometrics and Applications, Prentice Hall Hanglowood Cliffs.
6. Wood, M.B. (1983), Introducing Computer Security, Broadman Associates, New Delhi.
7. Sanders, D.H. (1988): computers Today, McGraw Hill, New York.

38
 Karnataka State Open University
Mukthagangotri, Mysore-570006

Department of Studies &

Research in Economics
III-Semester M.A Economics
SEC-T: COMPUTER
FUNDAMENTALS TO
ECONOMICS-I

BLOCK
2
Data Representation and Applications of Statistical
Methods

UNIT-5 : Data Representation

UNIT-6 : Calculation of Mean and Variance

UNIT-7 : Calculation of Correlation and

Regression

UNIT-8 : Statistical Package and Data Base

39
 CREDIT PAGE
Programme Name: M.A ECONOMICS Year/Semester: 3 rd SemesterBlock No:1-2
Course Name :Computer Fundamental to Economics-I (OE) Credit:02 Unit No:1-8
(Open Elective)
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Karnataka State Open University
Mukthagangotri, Mysore-570006
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Course Designer / Programme Co-Ordinator
Karnataka State Open University
Mukthagangotri, Mysore-570006
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Karnataka State Open University
Mukthagangotri, Mysore-570006
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Sir M.V.P.G.Centre, Tubinakere, Mandya
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COURSE WRITER
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Assistant Professor DOS&R in Economics, Tumakuru University. Tumakuru.
COPYRIGHT
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Mukthagangotri, Mysore-570006
Developed by: The Department of Studis and Research in Economics, KSOU, under the guidance of
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40
 Unit-5: Data Representation

Structure:
5.0 Objectives
5.1 Introduction
5.2 Types of data representation: Tables, charts and graphs
5.3 Time and frequency series
5.4 Descriptive Statistics
5.5 Creating graphs - histograms, pie charts and bar graphs
5.6 Check your Progress
Answers to Check your Progress
5.7 Summary
5.8 Key words
5.9 Questions for Self-Study
5.10 Books for Reference

41
5.0 Objectives
 The student will be able to understand the meaning of data representation
 Able to explain the components of a table, charts and graphs
 They were able to grasp the classification of descriptive statistics.
 He will be able to calculate and draw the pie chart along with the histogram and the bar
diagram diagram diagram
5.1 Introduction:
The form in which data is kept, processed and communicated is called its representation.
Devices such as smartphones, iPods and computers store data in digital forms, which can be
processed by an electrical circuitry.
Data representation, is a term used to describe the methods used to represent information
stored in a computer. A wide range of data can be collected in a computer's representation,
including continuous data such as sounds and scenes, and separate data such as numbers
and letters. Using numeric notations, they display the data.
Numerical data can be analyzed by means of a graphical representation. It uses graphic to
show the relationship between facts, ideas, information and concepts. One of the most
critical learning techniques is that it is simple to learn. The type of information in a
particular area is always a factor. Different types of graphical representations exist.
5.2 Types of data representation: Tables, charts and graphs
There are two main uses for various data representation methods, including tables, charts,
and graphs. The first is to assist in collecting, organizing and analyzing data as part of
scientific investigation. The second is to help make the findings of the study more
accessible to a larger audience. The following factors affect the choices of how to present
the data:

 The nature of the data

 Types of questions about the data of interest
5.2.1 Table:
The data collected and classified should be presented in the form of a table. It provides a
better understanding, comparison and analysis of the given data. The data is arranged in the
form of a table consisting of rows and columns. Thus the statistical table presents big data
in a detailed and systematic form. Listing is the process of arranging the classified data
systematically in the form of a table in rows and columns.

42
Components of a good table:
A good table basically consists of the following parts or components.
1. Table number:

The table number is assigned to the table for the purpose of identification. If more than one

table is presented it is a table number that makes it easily identifiable from one table to

another. Generally, table numbers are whole numbers. Subscript numbers like 1.2, 1.3 etc.

Also used to identify. And the table number should be written at the top of the table.

2. Title:

The title describes the nature of the data. It should be clear, concise and written in bold

letters at the top. It ranked next to the table number.

3. Main note or subtitle:

It is slightly below the title of the table on the right. Statistical units of measurement, such

as Rs., million tone, crores, kgs, etc. Included in bracket.

4. Titles or column titles:

At the top of each column in the table is given a column designation to describe the figures

of the column. He explains what the columns represent. Titles are always written in one or

two words at the top of each column.

5. Stubs or line title:

Line titles are called stubs. As with the title or column title, each line in the table has to be

given a title. He explains what the line represents. A brief description of the titles of the line

can be given on the left side of the table.

6. Body of table:

The body of the table is the main part. It consists of numerical data. The table should be

balanced i.e., the length and width should be in the appropriate ratio according to the size of

the paper.

43
Different components of the table

7. Original note:
This is a brief note indicating the source of the information presented in the table. If there is
more than one source, all sources should be written in the original. The source is usually
written at the bottom of the table.
8. Foot note:
This is the last part of the table. It describes the specific features of the data, the content of
the table, which readers cannot understand from the title, title, and stubs.
5.2.2 Charts and graphs:
Although the table presentation of the data is more convincing, it is not of interest as it uses
numerical statistics. Charts and graphs are used to understand the data even for the general
public. Several types of charts and graphs are used to present data. Among them the
following are commonly used:
 One-dimensional diagram
 Two-dimensional diagram
 Arithmetic line graph
 One-dimensional diagram:
Here only the height is considered. These are mostly bar drawings. Here only one
characteristic is considered. These are simple bar diagram, multiple bar diagram, subdivided
bar diagram, percentage bar diagram.
 Two-dimensional diagram:
Only height in one dimension is considered. Here both height and width are taken into
account and the area generated by them is proportional to the volume of the data. E.g.
circles, squares, rectangles and pie diagram chart, histogram

44
 Arithmetic line graph:

The graph of an arithmetic line is also known as the time graph. It helps in understanding

the trend, periodicity, etc. In long-term series data. This graph depicts the value of the

variable (time series data) along the x axis and along the y axis of time (hour, day, week,

month, year, etc.). It is also known as simple line diagram.

5.3 Time and frequency series:

The assumption that time series data represent a combination of variance across multiple

time scales is resolved directly by the time scale analysis of time series data. In order to

investigate which time scales are "interesting" in a given context, frequency-based analysis

techniques are intended to separate the variance in those different time scales.

Statisticians have used frequency distributions extensively in the fields of biometrics and

education, but time series have not caught their attention. On the other hand, economic and

business statisticians have largely focused on the time series and have done relatively little

with the frequency distribution. As a result, the two hypotheses have developed largely

independently of each other. But occasionally, elements of the time series are used to create

frequency distributions. Additionally, the term derived from frequency distributions is used

to describe the cycle relations in the components of their standard deviation when analyzing

economic cycles.

In particular, the importance of the standard deviation of the items in the time series is

investigated. The purpose of this work is to analyze what types of frequency curves are

related to each other for different types of time series curves. We keep things simple by

focusing on curves that oscillate around the horizontal axis and correspond to the time

series that cut the trend and seasonality. Furthermore, we assume that the random

oscillations are lost, leaving only periodic curves that proceed smoothly from the bottom of

the cycle to its peak.

45
5.4 Descriptive Statistics
Abbreviated beneficial coefficients, known as descriptive statistics, are used to aggregate a
particular data set, which can be a sample of the population or a representation of the entire
population. Measurements of central trend and measurements of variance (spread) are units
of descriptive statistics. Descriptive statistics are used to describe or summarize data in a
meaningful and useful way.
In summary, descriptive statistics are specialized techniques used to quantify, characterize,
and summarize the collected research data in a logical, significant, and effective way. In the
text, tables, or statistics of the manuscript, descriptive data are presented quantitatively or
visually.

46
5.5 Creating graphs - histograms, pie charts and bar graphs
5.5.1 Histogram :
A graph called a histogram is used to show the frequency distribution of a small number of
data points for a single variable. Histograms often divide data into different "bins" or "rank
groups" and count how many points there are in each bin. English mathematician Carl
Pearson is credited with creating the histogram.
A visual representation of data points arranged in user-specific ranges is called a histogram.
The histogram, which resembles a bar graph in appearance, condenses the data series into a
meaningful view by collecting several data points and organizing them into logical ranges
or bins.
A common graphing tool is the histogram. It is used to present interval-scale summaries of
individual or continuous data.
E.g. Create a histogram for the following data containing gdp growth rate in the series
2011-12
year Growth Rate
2012 -13 5.1
2013-14 6.3
2014-15 7.6
2015-16 8.0
2016-17 7.0
2017-18 6.6

Growth Rate
9
8
8 7.6
7
7 6.6
6.3
6
5.1
5
4
3
2
1
0
2012 -13 2013-14 2014-15 2015-16 2016-17 2017-18

47
5.5.2 Pi diagram:
This is another way of representing statistical data. A pie diagram is a method of showing
each item in terms of percentage distribution. It is very attractive in showing the
government's budget (revenue and expenditure), crop pattern, production, etc.
Steps to build a pie diagram are:
a. Calculate the size of each angle from the following formula with the given data

b. Write a circle
c. Measure the area of each angle in anti-clock direction
d. Each area should be shaded with a different color

Example 2: The following data table contains the trend of the key factors of expenditure
(Budget Expenditure 2019-20) Prepare a pie diagram

Cost (Rs. in
Items
crores)
Agriculture and allied activities 149981
Commerce and Industry 27660
education 93848
Health 63538
Rural Development 138962
Social Welfare T. 49337
Transportation 156187
Urban Development 48032
Calculation:
Cost (Rs. in
Items Angle
crores)
Agriculture and allied 149981 = 74.21
149981
activities 727545
27660 = 13.68
Commerce and Industry 27660
727545
93848 = 46.43
education 93848
727545
63538 = 31.43
Health 63538
727545
138962 = 68.76
Rural Development 138962
727545

48
 49337 = 24.41
Social Welfare T. 49337 727545

156187 =77.28
Transportation 156187 727545

48032 = 23.76
Urban Development 48032
727545
Total 727545 360

5.5.3 Simple list diagram:

The simplest type of bar drawing is a simple bar diagram. It represents only one variable. It
consists of a rectangular group of equal size and equal width. It is used for comparative
study of two or more items of the same variable.
Example 1: A simple list diagram represents the following data about the total food grain
production for different years
2009- 2010- 2012- 2013- 2014- 2015-
year 2011-12
10 11 13 14 15 16
Food Grains
(million 218 244 259 257 264 252 251
tons)

49
5.6 Check your progress:

1. What are the components of a good table.

2. Write about the types of charts and graphs
3. Briefly about time and frequency series
4. The following data table contains the trend of key aspects of expenditure (Budget
Expenditure 2019-20) Prepare a pie diagram
Cost (Rs. in
Items
crores)
Agriculture and allied activities 149981
Commerce and Industry 27660
education 93848
Health 63538
Rural Development 138962
Social Welfare T. 49337
Transportation 156187
Urban Development 48032

5. For the following data on total food grain production in different years through a simple
list diagram
2009- 2010- 2012- 2013- 2014- 2015-
Year 2011-12
10 11 13 14 15 16
Food Grains
(million 218 244 259 257 264 252 251
tons)

50
Answers to check your progress:
1) 5.2.1 2) 5.2.2 3 ) 5.3 4) 5.5.2 5) 5.5.3
5.7 Summary:
Data representation, is a term used to describe the methods used to represent information
stored in a computer. A wide range of data can be collected in a computer's representation,
including continuous data such as sounds and scenes, and separate data such as numbers
and letters. Using numeric notations, they display the data. There are two main uses for
various data representation methods, including tables, charts, and graphs.
The data collected and classified should be presented in the form of a table. It provides a
better understanding, comparison and analysis of the given data. The data is arranged in the
form of a table consisting of rows and columns.
Several types of charts and graphs are used to present data. Among them the following are
commonly used:
 One-dimensional diagram
 Two-dimensional diagram
 Arithmetic line graph
The assumption that time series data represent a combination of variance across multiple
time scales is resolved directly by the time scale analysis of time series data.
Descriptive statistics are used to describe or summarize data in a meaningful and useful
way.
In summary, descriptive statistics are specialized techniques used to quantify, characterize,
and summarize the collected research data in a logical, significant, and effective way. In the
text, tables, or statistics of the manuscript, descriptive data are presented quantitatively or
visually.
Creating graphs involves histogram, pie chart and bar graphs. A graph called a histogram is
used to show the frequency distribution of a small number of data points for a single
variable. A pie diagram is a method of showing each item in terms of percentage
distribution. The simplest type of bar diagram is simple bar diagram. It represents only one
variable. It consists of a rectangular group of equal size and equal width. It is used for the
comparative study of two or more objects of the same variable.
5.8 Keywords
Data representation - It is a term used to describe the methods used to represent information
stored in a computer. A wide range of data can be collected in a computer's representation,

51
including continuous data such as sounds and scenes, and separate data such as numbers
and letters. Using numeric notations, they display the data.
Descriptive statistics - They are used to describe or summarize data in a meaningful and
useful way. They are specialized techniques used to quantify, characterize, and summarize
the collected research data in a logical, significant, and effective way.
5.9 Questions for self-study
1. Explain the types of data representation.
2. Write about the components of a good table with a suitable table diagram.
3. Explain the different types of graphs such as histogram, pie chart and bar graphs with
the correct example.
5.10 Books for reference
1. Rajasekharan, S.; (1986), Numerical Methods in Science and Engineering
2. A. H. Wheeler, Allahabad Sanders DH (1988) Computer Today, McGraw-Hill (3rd edn
New York)
3. Sinha P.K. (1992), Computer Fundamentals, BPB Publications, New Delhi.
4. Rajaraman, V.; (1996), Fundamentals of Computers, Prentice Hall of India, New Delhi.
5. Das and Singh (2006): Introduction to Computers, Mr. Publishers and Distributors, New
Delhi.
6. Lipschultz, M.M., and S. Lipschultz (1982), Theory and Problems of Data Outline
Series, McGraw Processing, Shams Hill, New York.
7. Intrigator, M.D. (1978), Econometric Models, Econometrics and Applications, Prentice
Hall Hanglowood Cliffs.
8. Wood, M.B. (1983), Introduction to Computer Security, Bradman Associates, New
Delhi.
9. Sanders, D.H.; (1988): Computers Today, McGraw-Hill, New York.

52
 Unit-6: Calculation of Mean and Variance

6.0 Objectives
6.1 Introduction
6.2 Various Method of calculation of Central Values
6.3 Measures of Dispersion
6.4 Check your Progress
Answers to Check your Progress
6.5 Summary
6.6 Key words
6.7 Questions for Self-Study
6.8 Books for Reference

53
6.0 Objectives
 Distinguish the different type of dispersion
 Able to calculate range, quartiles, mean deviation taken from arithmetic mean, standard
deviation
 Recognises the importance of Lorenz curve
 Distinguish the different type of averages
 Able to calculate the Mean for ungrouped data and grouped data from direct method
assumed average method and step deviation method
 Recognises the difference types in Median and its calculation
 Able to calculate Mode
6.1 Introduction
The data in its arranged tabular form generally exhibits a common characteristic of
clustering of all given individual item around a value often called measure of central
tendency. The measure of central tendency is often called averages. The word ‗average‘ has
been defined by various statistician.
Clark defined ―Average is an attempt to find single figure to describe whole of figures‖
Leabo said ―average is sometimes described as a number which is typical of the whole
group‖
It is clear from the definitions that average is a single value which represent the entire data.
In the last chapter we discussed the various measure of central tendency. The averages are
not alone adequate to describe the set of observation. There is need to describe how the
values in a data are scattered from an average. The study of variation of values from its
average known as dispersion or variation
A.L. Bowley said ―dispersion is the measure of the variation of the items‖.
Dispersion serves the purpose of determine the reliability of an average, serve as the basis
for the control of the variability, compare two or more series variability and to facilitate
other statistical purpose.

6.2 Various Method of calculation of Central Values

6.2.1 Types of Averages
The principle Averages are
1. The Mean ̅
a. The Arithmetic Mean

54
b. The Geometric Mean
c. The Harmonic Mean
2. Median ̃
a. Quartiles
b. Deciles
c. Percentiles
3. Mode ̂
a. Uni-model Mode
b. Bi- model Mode
c. Crude Mode
d. Graphical Interpolation Mode
e. Empirical Mode
6.2.2 Arithmetic Mean
The most popular measure for representing data by one value called arithmetic mean.
Types of arithmetic mean:
a. Simple Arithmetic Mean
b. Weighted Arithmetic Mean
a. Simple Arithmetic Mean: It is calculated for a data giving equal importance to all the
items in the data. Arithmetic mean is the most commonly used measure of central
tendency. ―It is the sum of the values of all observations divided by the number of
observations. It is denoted by ̅ .
Case (1) Ungrouped Data:
a) Direct Method: If there are N observation as X1, X2, X3, X4,…… Xn, then the arithmetic
mean is given by

̅=

Where, is sum of all observation

is Total number of observation
Example 1: calculate Arithmetic Mean from the data showing marks of the students in a
class in an social science test 50, 45,78, 58, 85

Solution: ̅ =

= 50+45+78+58+85+90+65+38

55
 5
= 63.62
The average marks of students in the social science is 63.62
Assumed Mean Method: To simplify the calculations we may take deviations from
arbitrary mean and calculate Arithmetic Mean. This method also known as assumed mean
or shortcut method

Here, A = assumed mean

d=x-A (deviation of assumed mean from individual observation)
x = individual observation
N = total number of observation
Example 2: calculate Arithmetic Mean from the data showing marks of the students in a
class in an social science test 50, 45,78, 58, 85

d=x-A
Marks
(A = 50)
50 0
45 -5
78 28
58 8
85 35
90 40
65 15
38 -12
109

b) Step Deviation Method: The calculation can be simplified by dividing all deviations
taken from assumed mean by the common factor ‗c‘.
̅ xc

Here, d' =

A = assumed mean
x = individual observation
N = total number of observation

56
C= common factor

Example 3: Calculate the arithmetic mean for the following data:

Wages 20 21 22 23 24 25 26 27
0 0 0 0 0 0 0 0

Solution:
d1 =x-
d=x-A A
Wages (A = c
200) (c =
10)
200 0 0
210 10 1
220 20 2
230 30 3
240 40 4
250 50 5
260 60 6
270 70 7
|
=
=280
28

̅ xc

̅ x 10

̅
̅

Case (2) Grouped Data:

A. Discrete Series. In this case the obtained values are summed up and divide by total no of
frequencies.

a) Direct Method.̅=

Where, is sum of the product variable and frequencies

is Total number of frequencies

57
Example 4: Calculate the arithmetic mean for the following data:

Wages 4 5 6 7 8 9
(x) 0 0 0 0 0 0
Persons 8 1 1 9 7 6
(f) 8 2

Solution:
Wages Persons
fx
(x) (f)
40 8 320
50 18 900
60 12 720
70 9 630
80 7 560
90 6 540
N=60
3670

̅=

̅=

̅= 61.16

B. Continuous Series. Here class intervals are given. The calculating process is same as
discrete series.
Example 5: Calculate the arithmetic mean for the following data:

Marks (x) 0- 10- 20- 30- 40-50 50-

10 20 30 40 60
No of Students 3 8 12 15 25 12
(f)

Solution:
a) Direct Method:
̅=

Where, is sum of the product variable and frequencies

58
 is Total number of frequencies
Solution:
Mid
No of
value
Marks Students fm
class
(f)
m
0-10 3 5 15
10-20 8 15 120
20-30 12 25 300
30-40 15 35 525
40-50 25 45 1125
50-60 12 55 660
60-70 8 65 520

83
=3265

̅ =

= 39.33
b) Step Deviation Method:
̅ xc

Here, d' =

A = assumed mean
m = mid value of class
N = total number of observation
C= common factor

59
 Mid
No of
value d' =
Marks Students fm fd|
class A=35
(f)
M
0-10 3 5 15 -3 -9
10-20 8 15 120 -2 -16
20-30 12 25 300 -1 -12
30-40 15 35 525 0 0
40-50 25 45 1125 1 25
50-60 12 55 660 2 24
60-70 8 65 520 3 24

83
=3265 36

̅ xc

x 10

= 39.33
b) Weighted Arithmetic Mean:
Some time it is important to assign weights to various items according to their importance
while calculating arithmetic mean.
Ex: suppose there are two commodities orange and apple. The average price of orange is p 1

and apple is P2 . The arithmetic mean will be . in case if want to give more

importance to the rise of apple prices we use ‗weights‘. The formula for weighted
arithmetic mean is follows:

In general, the weighted arithmetic mean is

60
2. The Geometric Mean (GM)
It is the nth root of product of ‗n‘ observation is series. Denote by G
If X1, X2, X3, X4…….. Xn are ‗n‘ observation then

G =n √
However, if number of observation is more than the calculation will be done with the help
of logarithms.
for ungrouped data, G=Antilog |

for grouped data discrete and continuous data G=Antilog |

3. The Harmonic Mean (HM)

Harmonic mean is the reciprocal of the arithmetic mean of the reciprocal of the observation.
If X1, X2, X3, X4…….. Xn are ‗n‘ observation then their reciprocal would be

H= , , ………

Harmonic Mean is used for averaging different rates producing equal effect.

6.2.3 Median
It is the mid value of the given data in its arranged tabular form. Median is the positional
value of the variable which divides the distribution into two equal parts. The median is the
―middle value‖ element when the data set is arranged. Since the median is determined by
the position of the different values, it remains unaffected even if its size of the largest value
increases. It is denoted by ̃.
Calculation of Median:
1. For distribution of individual observation.
Median = size of ( ) th item.
Where N= number of observation.
Example 6: for the following data calculate Median
X=22, 26, 30, 14,11,18, 34,32
Solution: arrange the data in ascending order,
Items 1 2 3 4 5 6 7 8
X 11 14 18 22 26 30 32 34
th
Median = size of item

th
= size of item

61
 = size of 4.5th item
Then the median

= = =24
2. Calculation of Median for grouped data
a. Calculation of Median for discrete frequency distribution
In case of discrete series, the position of the median i.e., ( ) item can be located through
cumulative frequency. The corresponding for value at this position is the value of Median.

Median = size of ( ) th item.

Example 7: Calculate the mean for following data

X 50 60 70 80 90 100 110
F 4 6 10 15 8 5 1

Solution:
Cumulativ
No of
e
X Students
Frequency
(f)
cf
50 4 4
60 6 10
70 10 20
80 15 35
90 8 43
100 5 48
110 1 49
49

th
Median = size of item

th
= size of item

= size of 25 th item
= 80 is the median value. (The corresponding value of cf is the value
median)
b. Calculation of Median continuous frequency distribution
In case of continuous series we have to locate the Median class ( )th item.

62
Median = l1 +( )xc
f
l1 = is the lower limit of the median
c.f = cumulative frequency of the class preceding the median class
f= frequency of the median class
c = magnitude of the median class interval. (l1 -l2 )
N= no of observations in the distribution.

Example 8: Calculate the median for following data

Daily wages 40-
45-50 50-55 55-60 60-65 65-70 70-75
(X) 45
No of workers
10 20 42 54 45 18 7
(f)
Solution:
Cumulativ
Daily No of workers
e
wages (X) (f) Frequency
cf
40-45 10 10
45-50 20 30
50-55 42 72
55-60 54 126
60-65 45 171
65-70 18 189
70-75 7 196

th
Median = size of item

= size of 98 th item is the median class. The corresponding value of cf is the

median class i.e 55 -60

Median = l1 +( )xc
f
l1 = 55, c.f = 72, f= 54, c = 5,
= 55 + x5
54

63
 = 55 + X 5
54
= 55 +
= 57.4
Quartiles: if the given data divide in to four equal part it is called quartiles. The first
quartile has 25% below the distribution and 75% above the distribution, denoted by Q 1. Q2
the second quartile 50% below and 50% above distribution. The third quartile denoted by
Q3 75 % below the distribution and 25% above the distribution.
Deciles: if we divide the distribution in 10 equal parts it is called deciles.
Percentiles: if we divide the distribution in to hundred equal parts it is called percentiles.
6.2.4 Mode
The value of the variable that repeats itself for the most time is called Mode. Mode is most
frequently repeated data value. ‗mode‘ word derived from French word ―la mode‖, signifies
most fashionable values of distribution.
1. Discrete series;
Example 9: 1,2,3,3,4,5 in this data set find the mode.
Solution: the mode of the data is 3. Because it is most repeated value of the given data.
2. Continuous series: we have to determine the mode class which is having highest
frequency. Then use the formula

Mode = l1

l1= lower limit of the modal class

i= length of modal class
f1 = frequency of the modal class
f 0= frequency of preceding to f1
f2 = frequency after f1

Example 10: For the following data calculate Mode

Income 500 1000- 1500- 2000- 2500 3000-

(Rs) -1000 1500 2000 2500 -3000 3500

No of
6 18 30 17 8 9
workers
Solution: Determine the mode class. Class corresponding to highest frequency = 1500-
2000

64
Mode = l1

l1= 1500, i= 500, f1 = 30, f 0= 18, f2 = 17

Mode = 1500

= 1500

= 1500

= 1500

= 1500

= 1500+ 240
= 1740

6.3 Measures of Dispersion

6.3.1 Introduction:
In the last chapter we discussed the various measure of central tendency. The averages are
not alone adequate to describe the set of observation. There is need to describe how the
values in a data are scattered from an average. The study of variation of values from its
average known as dispersion or variation
A.L. Bowley said ―dispersion is the measure of the variation of the items‖
Dispersion serves the purpose of determine the reliability of an average, serve as the basis
for the control of the variability, compare two or more series variability and to facilitate
other statistical purpose.
6.3.2 Range:
Range is the simple method of studying variation. The difference between the largest and
smallest value of a given data known as range. It is denoted by R
Absolute measure for calculating range is, R=L-S
Relative measure known as coefficient of range,

Coefficient of range =

Here L = Largest value

S = Smallest value
Example 1: Find range and its coefficient for the following data

65
 20, 35, 81,44, 56, 76, 55
Solution:Range = L-S = 81 – 20 = 61
Largest value = 81
Smallest value = 20

Coefficient of range =

= = 0.60

6.3.3 Quartile Deviation (Semi Inter Quartile Range )

The drawback of range is it based on only two extreme observations and do not give idea of
the scatter of the values within the range. For this purpose, we have to calculate inter
quartile range and it includes 50% of observation.
The inter quartile range = Q 3 – Q 1. Quartile deviation is defined as half of the inter quartile
range.
Example: 2 Calculate QD and Co efficient of QD for the following observation
10, 15, 19, 20, 25, 29, 31, 38, 41, 50, 60
Solution: calculate the values of Q 3 and Q 1. Where Q 1= is lower quartile
Q3= is upper quartile

th
Q1 = size of item

th
= size of item

th
= size of item

= size of 3rd item = 19

similarly,

th
Q3 = size of item

th
= size of item = 9th item = 41

Absolute measure,
– –
Q.D = = = 11

66
Relative measure,
– –
Q.D = = = = 0.36

6.3.4 Mean Deviation:

The range and quartile deviation do not measure any sacredness around the average. The
Mean Deviation and the Standard Deviation help us in achieving this limitation.
―It is the mean of the absolute deviation of a set of observations from any measure of
central tendency‖. However, though it is calculated any average, but the arithmetic mean is
more frequently used in calculating the value of average deviation and this is reason why it
is more commonly called Mean Deviation
Computation of Mean Deviation from Arithmetic Mean:
a. Ungrouped Data:
If there are N observation as X1, X2, X3, X4,…… Xn, then
| | | ̅|
M.D ̅) = =

Example 3: calculate the mean deviation for the following

2, 4, 6, 7, 8, 9,

The Arithmetic mean ̅=

= =6

X | |
2 4
4 2
6 0
7 1
8 2
9 3
| |12

M.D ̅) = =2

67
b. Continuous Distribution
| | | ̅|
M.D ̅ = =

Example 4:
10- 20- 30- 40-
CI 0-10
20 30 40 50
F 5 8 16 8 3
Solution:
CI M fm | | | |
0-10 5 5 25 19 125
10-20 8 15 120 9 72
20-30 16 25 400 1 16
30-40 8 35 280 11 88
40-50 3 45 135 21 63
N= =
| 364
40 960

̅= = = 24
| |
M.D ̅ =

= 9.1
6.3.4 Standard Deviation:
This concept was used by Karl Pearson. It is an ideal measure for dispersion as it satisfies
most of the properties. While calculating the mean deviation we ignore the algebraic signs
where as in standard deviation signs are taken in to account. Mean deviation is either taken
from mean or median. Whereas the standard deviation is calculated on the basis of mean
only because the sum of the squares of the deviation taken from the arithmetic mean is the
least.
A. For Individual observation

a. Deviation taken from actual mean

Example 5: 5, 15, 20, 30, 50

68
 X d= X - ̅

5 -19 361
15 -9 81
20 -4 16
30 6 36
50 26 676
N = 120 1170
First we to calculate,

̅ = = = 24

√ =√

= √ = 15.29
b. Deviation taken from assumed mean
X d= X –A
5 0 0
15 10 100
20 15 225
30 25 625
50 45 2025
N=
95 2975
120
First we to calculate,

√ ⌊ ⌋ where d= (X-A)

√ ⌊ ⌋

=√ =√ = 15.29
B. Continuous series:
Example 6:

69
 CI 30-40 40-50 50-60 60-70 70-80
F 5 8 16 8 3

Solution:
a. Direct Method:
d =m-
CI f m Fm fd fd2
̅

30-40 5 35 175 -19 -95 9025

40-50 8 45 360 -9 -72 5184
50-60 16 55 880 1 16 256
60 – 70 8 65 520 11 88 7744
70-80 3 75 225 21 63 3969

= fd2 =
40
2160 26178

̅= = = 54

= √

= √ = 25.59

b. Assumed mean:
CI f M d=m–A fd fd2
3
30-40 5 -20 -100 10000
5
4
40-50 8 -10 -80 6400
5
5
50-60 16 0 0 0
5

60 – 8 6 10 80 6400

70
 70 5
7
70-80 3 20 60 3600
5

fd =
fd2 =26400
40 40

√ ⌊ ⌋ where d= (m-A)

= √ ⌊ ⌋

= √

=√ = 25.68
6.3.5 Lorenz Curve:
It is different from the other finding methods of dispersion. American Economist Max
Ottoo Lorenz was developed this method known as Lorenz Curve to describe the income
inequalities. It is a graphical measure available for estimating inequalities in distribution. It
uses the information in a cumulative manner to indicate the degree of inequality. It is
especially useful in comparing the variation of two or more distributions by drawing two or
more Lorenz curves.
6.4 Check your progress
1. Calculate Arithmetic Mean from the data showing marks of the students in a class in
Economics test 60, 55, 88, 68, 95. Use direct and assumed mean method
2. Calculate the arithmetic mean for the following data by using step deviation method

Wages 100 110 120 130 140 150 160 170

3. Calculate the arithmetic mean for the following descript data by using direct method

Wages (x) 50 60 70 80 90 100

Persons (f) 9 19 13 10 8 7

4. Calculate the arithmetic mean for the following continuous series by direct and step
deviation method

Marks (x) 20-30 30-40 40-50 50-60 60-70 70-80

No of Students (f) 4 9 13 16 26 13
5. Find range and its coefficient for the following data

71
30, 45, 90, 54, 66, 86, 65
6. Calculate QD and Co efficient of QD for the following observation
20, 25, 29, 30, 35, 39, 41, 48, 51, 60, 70
7. For the following ungrouped data calculate the mean deviation 3, 5, 7, 8, 9, 10
8. For following series calculate mean deviation.
CI 0-10 10-20 20-30 30-40 40-50
f 6 9 18 9 4
9. For the following observation calculate standard deviation from actual mean method
and assumed mean method
15, 25, 30, 40, 50
10. To the bellow continues series data calculate standard deviation from direct and
assumed mean method.
CI 30-40 40-50 50-60 60-70 70-80
F 5 8 16 8 3

Answers to check your progress:

1) 6.2.2 2) 6.2.2 3) 6.2.2 4) 6.2.2 5) 6.3.2 6) 6.3.3

7) 6.3.4 8) 6.3.4 9) 6.3.4
6.5 Summary:
In this unit various methods of dispersion discussed. Different types of dispersion namely
range, quartile deviation, mean deviation taken from arithmetic mean, standard deviation
and lorenze curve are discussed. Particularly the calculation of absolute version and relative
version of range and quartile deviation are discussed. Mean deviation from arithmetic mean
examples are discussed. While calculating standard deviation both direct and step deviation
method used both for discrete and continuous data series. To calculate the income
inequality or distribution of income the Lorenz curve is used for dispersion calculation.
In this unit various measures of measuring central tendency and their calculation has been
discussed. Different type of averages namely mean, median, and mode is been discussed. In
mean arithmetic mean, geometric mean and harmonic mean types are recognised.
Particularly the calculation of arithmetic mean for the ungrouped data and grouped data
calculation by direct method, assumed mean method and step deviation method are
discussed. Similarly, the median which consists, quartiles, deciles and percentiles are

72
discussed and various methods for calculating median. The another important average mode
it measures are also discussed in this unit.
6.6 KeyWords:
Mode: The value of the variable that repeats itself for the most time is called Mode. Mode is
most frequently repeated data value. ‗mode‘ word derived from French word ―la mode‖,
signifies most fashionable values of distribution.
Lorenz Curve: It is a graphical measure available for estimating inequalities in distribution.
It uses the information in a cumulative manner to indicate the degree of inequality
6.7 Questions for self-study
1. Write a brief note on Measures of Dispersion.
2. What are the averages? discuss various types of averages.
6.8Books for reference
1. Rajasekharan, S.; (1986), Numerical Methods in Science and Engineering A. H.
Wheeler, Allahabad Sanders DH (1988) Computer Today, McGraw-Hill (3rd edn New
York)Sinha P.K. (1992), Computer Fundamentals, BPB Publications, New Delhi.
2. Rajaraman, V.; (1996), Fundamentals of Computers, Prentice Hall of India, New
Delhi.
3. Das and Singh (2006): Introduction to Computers, Mr. Publishers and Distributors,
New Delhi.
4. Lipschultz, M.M., and S. Lipschultz (1982), Theory and Problems of Data Outline
Series, McGraw Processing, Shams Hill, New York.
5. Intrigator, M.D. (1978), Econometric Models, Econometrics and Applications,
Prentice Hall Hanglowood Cliffs.
6. Wood, M.B. (1983), Introduction to Computer Security, Bradman Associates, New
Delhi.
7. Sanders, D.H.; (1988): Computers Today, McGraw-Hill, New York.

73
Unit-7: Calculation of Correlation and Regression

7.0 Objectives
7.1 Introduction
7.2 Various Method of calculation of Correlation
7.3 Calculation of Regression
7.4 Check your Progress
Answers to Check your Progress
7.5 Summary
7.6 Key words
7.7 Questions for Self-Study
7.8 Books for Reference

74
7.0 Objectives
 To understand the Meaning and different type of Correlation
 Able to calculate Correlation
 To Recognises the importance of Correlation and Regression
 To understand the Meaning and different type of Regression
 Able to estimate Regression
 To Recognises the importance of Regression
7.1 Introduction
As of now, we have come across the problems relating to one variable. But there are other
situations where we experience economic problems with more than one variables. For
example relationship between crop production and fertilizer will determine the yield. The
degree of correlation measured via the correlation analysis. Whereas, regression focuses
more on the cause and effect of independent variables on dependent variables.
L.R. Conner defined ―If two or more quantitites vary in sympathay so that movements in
one tend to be accompanied by corresponding movements in the other than they are said to
be correlated‖
A.M. Tuttle defined that ― Correlation is an analysis of the covariation between two or more
variations‖.
It is clear from the definitions that correlation is a degree of relationship between variables.
In the last chapter we discussed the various measure of mean and variance. Major
limitaitons of the previous chapters is single variable used to infer the solution. But
Correlation and regression help us to use more than one variable for the estimation.
7.2 Various Method of calculation of Correlation
7.2.1 Types of Correlation
1. Positive or negative correlation
2. Simple, partial and multiple correlation
3. Linear and non-linear Correlation
Positive and Negative correlation: If both variables are moving in the same direction is
called as positive correlation. Contrary, if both variables are moving in the opposite
direction is called as negative correlation.
Simple, Partial and multiple correlation : Simple correlation means correlation between
two variables. If there are three variables (X1, X2, X3) in the model then if we want study
the correlation between X1 and X2 then we keep X3 as constant then it is known as partial
correlation. Multi correlation means correlation between more than two variables.

75
Linear and Non-linear correlation: Linear correlation means if constant ratio of change in
one variable leads to change in constant change in another variables. On contrary, constant
ratio of change in one variable may not lead to change in another variables is called as non-
linear correlation.
7.2.2Methods of Calculation of Correlation
The three different methods of measuring correlation between two variables are:
1. Scatter Diagram
2. Karl Pearson‘s Coefficient of Correlation
3. Spearman‘s Rank Correlation Coefficient
7.2.2.1. Scatter Diagram:
A simple and attractive method of measuring correlation by diagrammatically
representing bivariate distribution for determination of the nature of the correlation
between the variables is known as Scatter Diagram Method. This method gives a visual
idea to the investigator/analyst regarding the nature of the association between the two
variables. It is the simplest method of studying the relationship between two variables as
there is no need to calculate any numerical value.
How to draw a Scatter Diagram?
The two steps required to draw a Scatter Diagram or Dot Diagram are as follows:
1. Plot the values of the given variables (say X and Y) along the X-axis and Y-axis
respectively.
2. Show these plotted values on the graph by dots. Each of these dots represents a pair of
values.
Example:
Represent the following values of X and Y variables with the help of a scatter diagram.
Also, comment on the type and degree of correlation.

Solution:

76
The scatter diagram shows that there is an upward trend of the points from the lower left-
hand corner to the upper right-hand corner of the graph. In short, there is a Positive
Correlation between the values of X and Y variables.
7.2.2.2. Karl Pearson‟s Coefficient of Correlation:
The first person to give a mathematical formula for the measurement of the degree of
relationship between two variables in 1890 was Karl Pearson. Karl Pearson‘s Coefficient
of Correlation is also known as Product Moment Correlation or Simple Correlation
Coefficient. This method of measuring the coefficient of correlation is the most popular
and is widely used. It is denoted by „r‟, where r is a pure number which means that r has
no unit.
According to Karl Pearson, “Coefficient of Correlation is calculated by dividing the sum
of products of deviations from their respective means by their number of pairs and their
standard deviations.‖

77
Example:
Use Actual Mean Method and determine Karl Pearson‘s coefficient of correlation for the
following data:

Solution:

78
Coefficient of Correlation = 0.98
It means that there is a positive correlation between the values of Series X and Series Y.
7.2.2.3. Spearman‟s Rank Correlation Coefficient:
Spearman‘s Rank Correlation Coefficient or Spearman‘s Rank Difference Method or
Formula is a method of calculating the correlation coefficient of qualitative variables and
was developed in 1904 by Charles Edward Spearman. In other words, the formula
determines the correlation coefficient of variables like beauty, ability, honesty, etc.,
whose quantitative measurement is not possible. Therefore, these attributes are ranked or
put in the order of their preference.

In the given formula,

rk = Coefficient of rank correlation
D = Rank differences
N = Number of variables
Example:
Calculate Spearman‘s Rank Correlation of Coefficient from the ranks given below:

Solution:

79
Coefficient of Correlation (rk ) = 0.38
As the rank correlation is positive and closer to 0, it means that the association between
the ranks of X and Y is weaker.
7.2.3 Calculation of Correlation in Excel
So how do you calculate the correction coefficient in Excel? Simple! Follow these steps:
1. Open Excel.
Step one: Open Excel and start a new worksheet for your correlated variable data. Enter the
data points of your first variable in column A and your second variable in column B. You
can add additional variables as well in columns C, D, E, etc. — Excel will provide a
correlation coefficient for each one.
In the example below, we‘ve entered six rows of data in column A and six in column B.

80
2. Install the Analysis Toolpak.
Next up? If you don‘t have it, install the Excel Analysis Toolpak.
Select ―File‖, then ―Options,‖ and you‘ll see this screen:

Select ―Add-Ins‖ and then click on ―Go‖.

Now, check the box that says ―Analysis ToolPak‖ and click ―Ok‖.
3. Select “Data” from the top bar menu.

81
Once you have the ToolPak installed, select ―Data‖ from the top Excel bar menu. This
provides you with a submenu that contains a variety of analysis options for your data.
4. Select “Data Analysis” in the top right-hand corner.
Now, look for ―Data Analysis‖ in the top right-hand corner and click on it to get this screen:

5. Select Correlation.
Select Correlation from the menu and click ―OK.‖

6. Define your data range and output.

Now define your data range and output. You can simply left-click and drag your cursor
across the data you want to select, and it will auto-populate in the Correlation box. Finally,
select an output range for your correlation data — we‘ve chosen A8. Then, click ―Ok‖.

7. Evaluate your correlation coefficient.

Your correlation results will now be displayed. In our example, values in column 1 and
column 2 have a perfect negative correlation; as one goes up, the other goes down at the
same rate.

82
 The Excel Correlation Matrix
Excel correlation results are also known as an Excel correlation matrix. In the example
above, our two columns of data produced a perfect correction matrix of 1 and -1. But what
happens if we produce a correlation matrix with a less ideal data set?
Here‘s our data:

And here‘s the matrix:

Cell C4 in the matrix gives us the correlation between Column 3 and Column 2, which is a
very weak 0.01025, while Column 1 and Column 3 yield a stronger negative correlation of -
0.17851. By far the strongest correlation, however, is between Column 1 and Column 2 at -
0.66891.
7.3 Calculation of Regression
Once we understand the concept of correlation, where correlation measures the degree of
relationship among variables. In case of regression measures the value of one variable
given the value of another variable. The term regression was first coined by Sir Francis
Galton in 1877 while studing the relationship between the height of fathers and sons.
Regression means moving towards.

83
Taro Yamane defined that ―One of the most frequently used techniques in economics and
business research, to find a relation between two or more variables that are related causally,
is regression analysis‖
Ya-Lun Chou defined that ―Regression attempts to establish the nature of the relationship
between variable-that is, to study the functional relationship between the variable and
thereby provide a mechanism for prediction, or forcasting‖.
7.3.1 Regression Line
Imagine you have some points, and want to have a line that best fits them like this:

We can place the line "by eye": try to have the line as close as possible to all points, and a
similar number of points above and below the line.
But for better accuracy let's see how to calculate the line using Least Squares Regression.
Our aim is to calculate the values m (slope) and b (y-intercept) in the equation of a line :
y = mx + b
Where:
 y = how far up
 x = how far along
 m = Slope or Gradient (how steep the line is)
 b = the Y Intercept (where the line crosses the Y axis)
Steps
To find the line of best fit for N points:
Step 1: For each (x,y) point calculate x2 and xy
Step 2: Sum all x, y, x2 and xy, which gives us Σx, Σy, Σx2 and Σxy (Σ means "sum up")
Step 3: Calculate Slope m:
m = N Σ(xy) − Σx ΣyN Σ(x2 ) − (Σx)2
(N is the number of points.)
Step 4: Calculate Intercept b:
b = Σy − m ΣxN
Step 5: Assemble the equation of a line
y = mx + b

84
Example: Sam found how many hours of sunshine vs how many ice creams were sold at
the shop from Monday to Friday:
"x" "y"
Hours of Ice
Sunshine Creams
Sold
2 4
3 5
5 7
7 10
9 15
Let us find the best m (slope) and b (y-intercept) that suits that data
y = mx + b
Step 1: For each (x,y) calculate x2 and xy:
x y x2 xy
2 4 4 8
3 5 9 15
5 7 25 35
7 10 49 70
9 15 81 135
2 2
Step 2: Sum x, y, x and xy (gives us Σx, Σy, Σx and Σxy):
x y x2 xy
2 4 4 8
3 5 9 15
5 7 25 35
7 10 49 70
9 15 81 135
2
Σx: 26 Σy: 41 Σx : 168 Σxy: 263
Also N (number of data values) = 5
Step 3: Calculate Slope m:
m = N Σ(xy) − Σx ΣyN Σ(x2 ) − (Σx)2
= 5 x 263 − 26 x 415 x 168 − 262
= 1315 − 1066840 − 676
= 249164 = 1.5183...
Step 4: Calculate Intercept b:
b = Σy − m ΣxN
= 41 − 1.5183 x 265
= 0.3049...
Step 5: Assemble the equation of a line:
y = mx + b
y = 1.518x + 0.305
Sam hears the weather forecast which says "we expect 8 hours of sun tomorrow", so he uses
the above equation to estimate that he will sell
y = 1.518 x 8 + 0.305 = 12.45 Ice Creams

85
Sam makes fresh waffle cone mixture for 14 ice creams just in case.
7.3.2 Calculation of Regression in Excel
This example teaches you how to run a linear regression analysis in Excel and how to
interpret the Summary Output.
Below you can find our data. The big question is: is there a relation between Quantity Sold
(Output) and Price and Advertising (Input). In other words: can we predict Quantity Sold if
we know Price and Advertising?

1. On the Data tab, in the Analysis group, click Data Analysis.

Note: can't find the Data Analysis button? Click here to load the Analysis ToolPak add-in.
2. Select Regression and click OK.

3. Select the Y Range (A1:A8). This is the predictor variable (also called dependent
variable).
4. Select the X Range(B1:C8). These are the explanatory variables (also called independent
variables). These columns must be adjacent to each other.
5. Check Labels.
6. Click in the Output Range box and select cell A11.

86
7. Check Residuals.
8. Click OK.

Excel produces the following Summary Output (rounded to 3 decimal places).

R Square
R Square equals 0.962, which is a very good fit. 96% of the variation in Quantity Sold is
explained by the independent variables Price and Advertising. The closer to 1, the better the
regression line (read on) fits the data.

Significance F and P-values

To check if your results are reliable (statistically significant), look at Significance F (1%). If
this value is less than 0.05, you're OK. If Significance F is greater than 0.05, it's probably
better to stop using this set of independent variables. Delete a variable with a high P-value
(greater than 0.05) and rerun the regression until Significance F drops below 0.05.
Most or all P-values should be below below 0.05. In our example this is the case.
(1% and 5%).

87
Coefficients
The regression line is: y = Quantity Sold =8536.214 -835.722 * Price + 0.592 *
Advertising. In other words, for each unit increase in price, Quantity Sold decreases with
835.722 units. For each unit increase in Advertising, Quantity Sold increases with 0.592
units. This is valuable information.
You can also use these coefficients to do a forecast. For example, if price equals $4 and
Advertising equals $3000, you might be able to achieve a Quantity Sold of 8536.214 -
835.722 * 4 + 0.592 * 3000 = 6970.
7.4 Check your progress

1. Calculate coefficient of correlation from the following data:

X 100 200 300 400 500 600 700

Y 30 50 60 80 100 110 130

2. Calculate Spearman‘s rank correlation coefficient

Grade A B C D E F G
Raju 2 1 4 3 5 7 6
Neena 1 3 2 4 5 6 7

3. Find the regression equation where X is independent variable and Y is Dependent

Variable

X 6 2 10 4 8
Y 9 11 5 8 7

Answers to check your progress:

1) 7.2.2 2) 7.2.3 3) 7.3

88
7.5 Summary:
In this unit various methods of estimating correlation and regression. Different types of
correlation namely positive, negative, linear, non-linear, simple, partial and multiple
correlation, regression are discussed. Particularly the calculation of Karlpearson‘s
calculation of correlation and spearman rank correlation are discussed. Calculation of
correlation and regression in excel demonstrated in the previous section.
7.6 Key Words :
Positive and Negative correlation: If both variables are moving in the same direction is
called as positive correlation. Contrary, if both variables are moving in the opposite
direction is called as negative correlation.
Spearman‟s Rank Correlation Coefficient: It is a method of calculating the correlation
coefficient of qualitative variables and was developed in 1904 by Charles Edward
Spearman
7.7 Questions for self-study
1. Write a brief note on Measures of Dispersion.
2. What are the averages? discuss various types of averages.
7.8 Books for reference
o Rajasekharan, S.; (1986), Numerical Methods in Science and Engineering
o H. Wheeler, Allahabad Sanders DH (1988) Computer Today, McGraw-Hill (3rd edn New York)
o Sinha P.K. (1992), Computer Fundamentals, BPB Publications, New Delhi.
o Rajaraman, V.; (1996), Fundamentals of Computers, Prentice Hall of India, New Delhi.
o Das and Singh (2006): Introduction to Computers, Mr. Publishers and Distributors, New
Delhi.
o Lipschultz, M.M., and S. Lipschultz (1982), Theory and Problems of Data Outline
Series, McGraw Processing, Shams Hill, New York.
o Intrigator, M.D. (1978), Econometric Models, Econometrics and Applications, Prentice
Hall Hanglowood Cliffs.
o Wood, M.B. (1983), Introduction to Computer Security, Bradman Associates, New
Delhi.
o Sanders, D.H.; (1988): Computers Today, McGraw-Hill, New York.

Unit-8: Statistical Packages and Data Base

89
8.0 Objectives
8.1 Application of SPSS for Statistical and Econometric Analysis
8.2 Data Base in Indian Economy
8.3 Collection of Data Through Census
8.4 NSSO, CSO, CMIE
8.5 Check your progress
Answer to check your progress
8.6 Summary
8.7 Keywords
8.8 Questions for Self Study
8.9 Books for reference

8.0 Objectives
 Student will be able to understand the Application of SPSS

90
 They understand the establishment of Data base in Indian Economy
 They able to differentiate between the Census and Sample Survey
 They Finds the establishment and activities of NSSO, CSO and CMIE
8.1 Application of SPSS for Statistical and Econometric Analysis
IBM created the statistical software package SPSS Statistics for data management,
advanced analytics, multivariate analysis, corporate intelligence, and law enforcement. It
was previously manufactured by SPSS Inc., but IBM purchased it in 2009.
Due to its clarity, simple command syntax, and comprehensive user manual, SPSS is well-
liked. It is used for survey data analysis by government agencies, educational institutions,
survey firms, market researchers, marketing organisations, health researchers, and many
other groups.
The benefits of utilising SPSS as a software package over alternatives include: • SPSS is a
thorough statistical programme. Numerous intricate statistical tests are accessible as an
integrated feature.
Market research is one of SPSS's most popular applications. It may be used to gather
information on a range of issues, such as client satisfaction, market trends, and rival
activities. The items or services that are selling well and why may also be ascertained using
this method.
Various window and screen kinds are used by SPSS in its fundamental activities. Each
window corresponds to a certain job or class of SPSS files. The Data Editor, Output
Viewer, Syntax Editor, Pivot Table Editor, Chart Editor, and Text Output Editor are among
the windows.
Python is the programming language used to create scripts for IBM SPSS Modeller. Jython
is the name of the Python-based Java implementation used by IBM SPSS Modeller.
In place of drop-down menus, SPSS syntax is a programming language that is exclusive to
SPSS and may be used for statistical analysis and data manipulation. Users may write, edit,
and run SPSS syntax in the Syntax Editor window.
A programming language specific to SPSS is called SPSS syntax. Instead of utilising the
graphical user interface, it enables you to create commands that execute SPSS processes.
By employing syntax, users may do activities that would be too time-consuming or
challenging to complete using drop-down lists. The Application of SPSS software are as
under.

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1. Data analysis for descriptive and bivariate statistics, numerical result forecasts, and
predictions for group identification are all provided by SPSS. Additionally, the
programme offers graphing, direct marketing, and data processing functions. In its main
view, the software interface shows open data in a manner akin to a spreadsheet.
2. SPSS Statistics is utilised across the whole analytics process, from planning and data
collection through analysis, reporting, and deployment, in the fields of education,
market research, healthcare, government, and retail.
3. SPSS assists market researchers in extracting useful insights from your consumer data
through the use of complex statistical studies. Its sophisticated survey data processing
technology makes it possible to obtain precise market trend information.
4. For processing and analysing survey data, such as what you gather using an online
survey platform like Alchemer, SPSS is used by market researchers, health researchers,
survey firms, government bodies, education researchers, marketing organisations, data
miners, and many more. The other application of SPSS are,
 Research Conclusions and Interpretations.
 Review of Literature Meta-Analysis.
 Designing surveys, designing clinical trials, etc.
 Epidemiological research.
 Modelling using statistics.
How to Calculate Descriptive Statistics for Variables in SPSS
The best way to understand a dataset is to calculate descriptive statistics for the variables
within the dataset. There are three common forms of descriptive statistics:
1. Summary statistics – Numbers that summarize a variable using a single number.
Examples include the mean, median, standard deviation, and range.
2. Tables – Tables can help us understand how data is distributed. One example is a
frequency table, which tells us how many data values fall within certain ranges.
3. Graphs – These help us visualize data. An example would be a histogram.
4. This tutorial explains how to calculate descriptive statistics for variables in SPSS.
Example: Descriptive Statistics in SPSS
Suppose we have the following dataset that contains four variables for 20 students in a
certain class:
 Exam score
 Hours spent studying
 Prep exams taken
 Current grade in the class

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Here is how to calculate descriptive statistics for each of these four variables:
Summary Statistics
To calculate summary statistics for each variable, click the Analyze tab, then Descriptive
Statistics, then Descriptives:

In the new window that pops up, drag each of the four variables into the box labelled
Variable(s). If you‘d like, you can click the Options button and select the specific
descriptive statistics you‘d like SPSS to calculate. Then click Continue. Then click OK.

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Once you click OK, a table will appear that displays the following descriptive statistics for
each variable:

Here is how to interpret the numbers in this table for the variable score:
• N: The total number of observations. In this case there are 20.
• Minimum: The minimum value for exam score. In this case it‘s 68.
• Maximum: The maximum value for exam score. In this case it‘s 99.
• Mean: The mean exam score. In this case it‘s 82.75.
• Std. Deviation: The standard deviation in exam scores. In this case it‘s 8.985.
This table allows us to quickly understand the range of each variable (using the minimum
and maximum), the central location of each variable (using the mean), and how spread out
the values are for each variable (using the standard deviation).
Tables. To produce a frequency table for each variable, click the Analyze tab, then
Descriptive Statistics, then Frequencies.

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In the new window that pops up, drag each variable into the box labelled Variable(s). Then
click OK.

A frequency table for each variable will appear. For example, here‘s the one for the
variable hours:

The way to interpret the table is as follows:

 The first column displays each unique value for the variable hours. In this case, the
unique values are 1, 2, 3, 4, 5, 6, and 16.
 The second column displays the frequency of each value. For example, the value 1
appears 1 time, the value 2 appear 4 times, and so on.

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 The third column displays the percent for each value. For example, the value 1 makes
up 5% of all values in the dataset. The value 2 makes up 20% of all values in the
dataset, and so on.
 The last column displays the cumulative percent. For example the values 1 and 2 make
up a cumulative 25% of the total dataset. The values 1, 2, and 3 make up a cumulative
60% of the dataset, and so on.
This table gives us a nice idea about the distribution of the data values for each variable.
Graphs
Graphs also help us understand the distribution of data values for each variable in a dataset.
One of the most popular graphs for doing so is a histogram.
To create a histogram for a given variable in a dataset,click the Graphs tab, then Chart
Builder.
In the new window that pops up, choose Histogram from the ―Choose from‖ panel. Then
drag the first histogram option into the main editing window. Then drag your variable of
interest onto the x-axis. We‘ll use score for this example. Then click OK.

Once you click OK, a histogram will appear that displays the distribution of values for the
variable score:

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From the histogram we can see that the range of exam scores varies between 65 and 100,
with most of the scores being between 70 and 90.
We can repeat this process to create a histogram for each of the other variables in the
dataset as well.

Instructions for Using SPSS to Calculate Pearson‟s r

Enter pairs of scores in SPSS using the data editor. Enter each subject‘s scores on a single
row. If you only had two variable, enter one variable in the first column and the other
variable in the second column. Once the data are entered, select Correlate from
the Analyze tab and select Bivariate from the Correlate options.

A dialog box will appear listing your variables. In this example, we have two variables.
Most data files would contain a range of variables. Click on the first variable in the dialog
box that you wish to include in your correlation analysis and press the –> to move it into
the Variables box. You could also double click on the variable name to move it into
the Variable box.

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Once you have moved the two variables you wish to analyze to the Variables box, click
on OK. By default, the system has selected Pearson and two-tailed significance.

Your output will appear in a separate window. The output shows Pearson‘s correlation
coefficient (r=.988), the two-tailed statistical significance (.000 — SPSS does not show
values below .001. In actuality, there is always a chance of error, so you should report the
value as p<.001 if SPSS reports .000), and the number of pairs (N=9).

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How to Perform Simple Linear Regression in SPSS
Simple linear regression is a method we can use to understand the relationship between a
predictor variable and a response variable.This Section explains how to perform simple
linear regression in SPSS.Suppose we have the following dataset that shows the number of
hours studied and the exam score received by 20 students:

Use the following steps to perform simple linear regression on this dataset to quantify the
relationship between hours studied and exam score:
Step 1: Visualize the data.
First, we‘ll create a scatterplot to visualize the relationship between hours and score to
make sure that the relationship between the two variables appears to be linear. Otherwise,
simple linear regression won‘t be an appropriate technique to use.
Click the Graphs tab, then click Chart Builder:

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In the Choose from menu, click and drag Scatter/Dot into the main editing window. Then
drag the variable hours onto the x-axis and score onto the y-axis.

Once you click OK, the following scatterplot will appear:

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From the plot we can see that there is a positive linear relationship between hours and score.
In general, students who study for more hours tend to get higher scores.Since there‘s a clear
linear relationship between the two variables, we‘ll proceed to fit a simple linear regression
model to the dataset.

Step 2: Fit a simple linear regression model.

Click the Analyze tab, then Regression, then Linear:

In the new window that pops up, drag the variable score into the box labelled Dependent
and drag hours into the box labelled Independent. Then click OK.

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Step 3: Interpret the results.
Once you click OK, the results of the simple linear regression will appear. The first table
we‘re interested in is the one titled Model Summary:

Here is how to interpret the most relevant numbers in this table:

 R Square: This is the proportion of the variance in the response variable that can be
explained by the explanatory variable. In this example, 50.6% of the variation in exam
scores can be explained by hours studied.
 Std. Error of the Estimate: The standard error is the average distance that the
observed values fall from the regression line. In this example, the observed values fall
an average of 5.861 units from the regression line.
The next table we‘re interested in is titled Coefficients:

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Here is how to interpret the most relevant numbers in this table:
 Unstandardized B (Constant): This tells us the average value of the response
variable when the predictor variable is zero. In this example, the average exam score
is 73.662 when hours studied is equal to zero.
 Unstandardized B (hours): This tells us the average change in the response variable
associated with a one unit increase in the predictor variable. In this example, each
additional hour studied is associated with an increase of 3.342 in exam score, on
average.
 Sig (hours): This is the p-value associated with the test statistic for hours. In this case,
since this value is less than 0.05, we can conclude that the predictor variable hours is
statistically significant.
Lastly, we can form a regression equation using the values for constant and hours. In this
case, the equation would be:
Estimated exam score = 73.662 + 3.342*(hours)
We can use this equation to find the estimated exam score for a student, based on the
number of hours they studied.
For example, a student that studies for 3 hours is expected to receive an exam score of
83.688:
Estimated exam score = 73.662 + 3.342*(3) = 83.688
Step 4: Report the results.
Lastly, we want to summarize the results of our simple linear regression. Here‘s an example
of how to do so:
A simple linear regression was performed to quantify the relationship between hours
studied and exam score received. A sample of 20 students was used in the analysis.

Results showed that there was a statistically significant relationship between hours studied
and exam score (t = 4.297, p < 0.000) and hours studied accounted for 50.6% of explained
variability in exam score.
The regression equation was found to be:

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Estimated exam score = 73.662 + 3.342*(hours)
Each additional hour studied is associated with an increase of 3.342 in exam score, on
average.

8.2 Data Base in Indian Economy

The necessity for humans to handle and retain an increasing amount of data has led to the
development of databases, which contain centralised material that has been logically
associated. Databases are now an essential resource for any organisation, from SMEs and
companies to governmental organisations, as a result of changes in the economy and
technological advancement.
Because they transmit data about your sales transactions, product inventory, customer
profiles, and marketing initiatives, database systems are crucial to your company. We have
no idea what's going on in your firm until you have a centralised location to keep all this
information.
The ultimate source for all data on the economy of India. The most reliable and
comprehensive information about the Indian economy can be found in CEIC Data's India
Premium Database, which is the perfect place to start any study on the country's economy.
The Department of Statistics and Information Management (DSIM), which is a division of
the Reserve Bank of India, maintains the database known as DBIE. Through a number of its
publications, primarily through its three parts—Home, Statistics, and Time-series
Publications—it disseminates data on many facets of the Indian economy. Once more,
Home is broken down into two sections: Important Economic Indicators and Economy at a
Glance through dashboards. Real Sector, Corporate Sector, Financial Sector, Financial
Market, External Sector, Public Finance, and Socio-Economic Indicators are the seven topic
categories in which the whole body of statistics has been provided. Reports within the
various sub-sectors of sectors have been grouped according to frequency. Data may be
downloaded in Excel, CSV, and PDF formats.

8.3 Collection of Data Through Census

Census and Sample Survey: Information regarding an enquiry can be collected in two
ways. In a census, information is gathered on every single unit of the population, such as
individuals or families. In a survey, data are only gathered for a sample of the population, a
subset of the overall population. The characteristics of the entire population are then
projected using these statistics.Census and sample surveys essentially relate to the statistical
collection of data across various areas and sectors pertaining to the particular subject.

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a. Census method
W.C. Plowden, the Indian Census commissioner, served as its director. The first census was
conducted in the year 1881. After independence the census was conducted in the year 1951
and then onwards every ten years. India has finished 7 th census in 2011.
The Latin word censere (which means "to estimate") is whence the English word census is
directly from. Because it was used to identify a citizen's class for both military and tax
purposes, the census was vital to the administration of the Roman government.
a census is a count of all the people, buildings, businesses, and other significant things in a
country or region at a specific period. When used by itself, the phrase often refers to a
population census, the kind that will be covered in this article. However, several nations
conduct manufacturing, agricultural, and housing censuses. A complete enumeration of
each and every unit of population is called census. Ex. Population census of India, where
survey will be collected once in every ten years.
b. Sample survey
The representative units of population are called sample. An enumeration based on sample
is called sample survey. Sample is a representative portion of the universe or population.A
sample survey is a technique for gathering information from or about population members
in order to draw conclusions about the whole population from a subset, or sample, of the
population.Survey sampling is the process of choosing participants from a specified group
to form a sample for a survey. A survey is often a questionnaire of some kind, whether it be
conducted in person, over the phone, or online.
As long as it does not exceed 1000, 10% is often a reasonable maximum sample size. As
long as the sample size doesn't exceed 1,000, a reasonable maximum sample size is often
approximately 10% of the population. 10%, for instance, would be 500 people in a
population of 5000.

8.4 NSSO, CSO, CMIE

NSSO – National Sample Survey Organisation:
It is an organisation under the ministry of statistics of GOI. It was established in 1950. It
collects the statistical data in the areas of development planning such as literacy rate,
employment, unemployment, etc. The main organisation in India performing recurring
socio-economic surveys was the National Sample Survey Office (NSSO), originally known
as the National Sample Survey Organisation.The National Sample Survey Organisation

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 (NSSO) gathers socioeconomic data using a variety of scientific sampling techniques. This
is one of NSSO's primary goals.
Activities of NSSO:
i. To carry out extensive sample surveys on topics such as household consumer spending,
employment and unemployment, health and medical services, etc.
ii. It chooses the subjects that will be addressed in a certain survey cycle.
iii. The agricultural division of FOD, NSSO, is in charge of helping the states by creating
appropriate survey methods for generating accurate and timely estimates of crop
production.
iv. Every year, it conducts the Annual Survey of Industries (ASI).
v. The NSSO releases reports on the assessment of agricultural production in India on an
annual basis.
vi. The NSSO is in charge of centrally coordinating the findings of the state-conducted
crop estimating surveys.
CSO – Central Statistical Office:
This comes under ministry of statistics and programme implementation. It was established
in 1951 with the objective of providing technical advice in building statistical system in
country. It has many divisions like industrial statistic wing, National income division,
population division, man power research division etc. The Ministry of Statistics and
Programme Implementation in India oversees the Central Statistics Office, a governmental
organisation tasked with developing and upholding statistical standards as well as
coordinating statistical operations throughout the country. A graphical unit is present. Delhi
is home to the CSO.
Data collection, processing, dissemination, and public relations, as well as general
administration, consulting, research, and human resource management, are the main
functions of CSO.
CMIE – Centre for monitoring Indian Economy:
These are constructed using information provided on a regular basis by the Ministry of
Statistics and Programme Implementation, by economic ministries, the RBI, stock
exchanges, and other reputable and competent sources. Derivate databases from CMIE's
own primary databases are also included in the secondary databases.
The Centre for Monitoring Indian Economy (CMIE) is a separate private limited
corporation that does double duty as a business information provider and as an economic

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think tank. On the Indian economy and private firms, the CMIE research division has
created databases. Through a subscription-based business model, CMIE offers this
information in the form of databases and research papers. Its main office is in Mumbai, and
it also has other offices around India
It was established by economist Dr. Narottam Shah in 1976, April 13th. It is a private
research organisation where its head quarter is at Mumbai. It provides services like
Financial Markets, business enterprises, Academia, professionals and Media.
In order to provide its customers with these databases for study and decision-making, CMIE
creates economic and business databases and creates specialist analytical tools. To identify
economic patterns, data is analysed.

8.5 Check your progress

1. Write about the application of SPSS Software.
2. Discuss about the Data Base in Indian Economy
3. Differentiate between Census and Survey
4. Write about NSSO, CSO and CMIE
Answers to check your progress:
1) 8.1 2) 8.2 3) 8.3 4) 8.4
8.6 Summary:
IBM created the statistical software package SPSS Statistics for data management,
advanced analytics, multivariate analysis, corporate intelligence, and law enforcement. It
was previously manufactured by SPSS Inc., but IBM purchased it in 2009. The Department
of Statistics and Information Management (DSIM), which is a division of the Reserve Bank
of India, maintains the database known as DBIE. Through a number of its publications,
primarily through its three parts—Home, Statistics, and Time-series Publications—it
disseminates data on many facets of the Indian economy. Information regarding an enquiry
can be collected in two ways. In a census, information is gathered on every single unit of
the population, such as individuals or families. In a survey, data are only gathered for a
sample of the population, a subset of the overall population. NSSO, CSO and CMIE are the
agencies collects the data on various sectors of the Economy

8.7KeyWords
Summary statistics – Numbers that summarize a variable using a single number. Examples
include the mean, median, standard deviation, and range.

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Tables – Tables can help us understand how data is distributed. One example is a
frequency table, which tells us how many data values fall within certain ranges.
Graphs – These help us visualize data. An example would be a histogram.
8.8 Questions for self-study
 Discuss about the data base in Indian Economy
 Examine the data collection from various Agencies
8.9 Books for reference
1. Rajasekharan, S.; (1986), Numerical Methods in Science and Engineering
2. A. H. Wheeler, Allahabad Sanders DH (1988) Computer Today, McGraw-Hill (3rd edn
New York)
3. Sinha P.K. (1992), Computer Fundamentals, BPB Publications, New Delhi.
4. Rajaraman, V.; (1996), Fundamentals of Computers, Prentice Hall of India, New Delhi.
5. Das and Singh (2006): Introduction to Computers, Mr. Publishers and Distributors, New
Delhi.
6. Lipschultz, M.M., and S. Lipschultz (1982), Theory and Problems of Data Outline
Series, McGraw Processing, Shams Hill, New York.
7. Intrigator, M.D. (1978), Econometric Models, Econometrics and Applications, Prentice
Hall Hanglowood Cliffs.
8. Wood, M.B. (1983), Introduction to Computer Security, Bradman Associates, New
Delhi.
9. Sanders, D.H.; (1988): Computers Today, McGraw-Hill, New York.

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