Chapter 2

COLLECTION OF DATA

The purpose of collection of data is to show evidence for reaching a sound and clear
solution to an economic problem.

STATISTICAL ENQUIRY

Statistical enquiry means a search conducted by using statistical methods to collect

quantitative information. The use of statistical technique is possible when the answers
to certain problems are required in quantitative terms. It implies conducting
investigation with the help of statistical methods.

Examples :

> Profit of companies in rupees

> Income of families in rupees
> Age of people in years

SOURCES OF DATA

There are different sources of collection of ‘data’.

I. INTERNAL SOURCES OF DATA

• Different organisations and Government departments generate the data as their

regular function which is the internal information.
• Internal data may be available in the organisation about sales, production, interest,
profit, dividends etc.
• Such data are compiled and used for future planning.

II. EXTERNAL SOURCES OF DATA

• Information collected from outside (other) organisations and institutions is called

external data.
• External data can be obtained from primary source or secondary source.

A. Primary Source of Data

When the investigator decides to collect the basic data himself through statistical
survey with the help of his team or field workers, he relies on primary source of data.
Primary source of data refers to collection of data from its source of origin. It offers
first hand quantitative information relating to statistical study. It involves lot of time
and cost.

Example : The investigator contacts the respondents and obtains desired quantitative
information on per capita expenditure of various households in his locality.

B. Secondary Source of Data

Secondary Source of Data refers to obtaining the relevant statistical information from
an institution which possesses such information. Thus, secondary source implies that
the required statistical information already exists and the investigator collects it from
the concerned agency or the department.

The investigator is not getting first hand information relating to his statistical study.
He relies on the information that is already existing.

Example: The investigator can approach the concerned government department and
request for the information about employed persons.

Statistical data can be obtained from two sources. The researcher may Collect the
data by conducting an enquiry. Such data are called Primary Data, as they are based
on first hand information Suppose, you want to know about the popularity of a film
star among school students. For this, you will have to enquire from a large number of
school students, by asking questions from them to collect the desired information.
The data you get, is an example of primary data.
If the data have been collected and processed (scrutinised and tabulated) by some
other agency, they are called Secondary Data. They can be obtained either from
published sources such as government reports, documents, newspapers, books written
by economists or from any other source, for example, a website. Thus, the data are
primary to the source that collects and processes them for the first time and secondary
for all sources that later use such data. Use of secondary data saves time and cost) For
example, after collecting the data on the popularity of the film star among students,
you publish a report. If somebody uses the data collected by you for a similar study, it
becomes secondary data.
MODE OF DATA COLLECTION
METHODS OF COLLECTION OF PRIMARY DATA

1. Direct Personal Investigation (Personal Interview)

Meaning

The direct personal investigation is the method by which data are collected by the
investigator from the informants by having direct contact with the informants.

In other words, investigator is in direct contact with the people from whom the
information is sought. Success of this method depends on efficiency, impartiality and
tolerance of the investigator. Example : Interviewing students of a school personally
to know their pocket expenses.

Suitability

Direct Personal Investigation is suitable when:

1. Area of enquiry is limited.

2. Maximum degree of accuracy is needed.
3. Direct contact with informants is necessary.
4. Secrecy of information is significant.
5. Data are required to be original.

Merits

1. Accuracy. Data collected by this method are fairly accurate as information is

collected from the source of origin.
2. Originality. It provides first hand information, so original data are collected.
3. Reliability. Since information is personally collected by the investigator and the
enquiry is intensive, data collected are reliable.
4. Uniformity. There is uniformity in data collected by investigator personally, which
facilitates comparison.
5. Related data. Since investigator is in contact with informants, he can collect other
related information from them.

Demerits

1. Difficult to study vast areas. This method cannot be used if the field of enquiry is
large. It can be used only when field of enquiry is limited.
2. Costly. This method is costly. It is expensive in terms of time, money and efforts
involved.
3. Personal bias. The data can lose credibility and reliability if the investigator is
biased.
4. Complex. This method is lengthy and complex as it requires investigators to be
trained in conducting personal interviews with informants.

2. Information Through Questionnaires and Schedules

Meaning

Under this method, data are collected by preparing a questionnaire keeping in mind
the objective of study. A questionnaire consists of a list of questions pertaining to the
investigation. There are two ways of collecting data on the basis of questionnaire :

• Mailing Method
• Enumerator's Method

A. Mailing Method

Meaning

In this method, a questionnaire prepared according to the objective of study is mailed

to the informants, with the request to answer and return them within a specified time
period. An assurance is given that the answers will be confidential. Example: Mailing
a questionnaire to government employees in an area to get feedback on their working
conditions and related affairs.

Suitability

This method can be applied when:

1. Area under investigation is very wide.
2. Informants are literate and educated.
3. When original first hand data are required.
4. When it is compulsory by law to fill questionnaire.

Merits

1. Economical. This is not an expensive method as mailing cost is less than that of
personal visits. It is economical in terms of time, money and efforts involved.
2. Wide coverage. Large fields can be studied under this method. This method is
convenient when informants are spread over a vast geographical area to be
investigated.
3. Original and reliable. Since this method provides first hand information, it is
original in nature and hence reliable.
4. Free from bias. This method is free from bias of the investigator as information is
given by informants themselves.

Demerits

1. Lack of interest. Lack of interest among informants limits the use of this method
as they may fail to send back the questionnaire or may send it incomplete.
2. Limited use. This method can be put to use only when informants are educated, so
that they return the questionnaire duly read, understood and answered.
3. Lack of accuracy. Informants may misinterpret or may not understand the
questions properly. So, there is a possibility of getting wrong results.
4. Inflexible. Since questions cannot be altered according to the suitability of the
informants, this method is not flexible. This hinders getting accurate information.

B. Enumerator's Method

Meaning

In this method, a questionnaire prepared according to the objective of study is taken

to the informants by trained enumerators, who help the informants in recording their
answers. The enumerator himself approaches the informants with questionnaire and
asks them questions which are called schedules. Enumerator fills the questionnaire
himself after seeking information.

Enumerators are the persons who help the investigators in collecting the data. They
are trained to fill the schedules and put forward the questions intelligently to procure
accurate data.

Example: If the purpose of investigation is to find out percentage change in monthly

expenditure of employees of a factory, who might need help to understand and supply
the right information to the investigator.

Suitability

This method can be used when :

1. Area under investigation is large.
2. Study requires skilled investigators.
3. Informants are not educated enough.
4. Personal contact is necessary when true and reliable answers are required for
difficult questions.
Merits

1. Wide coverage. It can cover a wide area. It can be used even when people are
illiterate.
2. Accurate and reliable. Accurate and reliable answers can be obtained because of
personal contact between informants and trained enumerators.
3. Personal contact. This method allows personal contact between the enumerator
and informants. So, this ensures reliability.
4. Complete information. Since questionnaires are filled by enumerators
themselves, these are complete in all regards as this method ensures complete
response.

Demerits

1. Costly. Since this method involves skilled enumerators, it is very expensive.

2. Time consuming. This method is also costly in terms of time. Enumerators may
require specialised training which is time consuming.
3. Biased. This method is not free from the bias of the enumerators. They might fill
wrong information if they are biased towards informants.
4.Non-Availability of skilled enumerators. It may be difficult to find skilled
enumerators. The investigation may suffer due to incompetent enumerators.

Qualities of a Good Questionnaire

The following points should be followed while designing a questionnaire:

1. Number of questions. The number of questions asked should be limited.

Questionnaire with many questions discourages people to complete it. The
questions which have direct impact on investigation should be asked.
2. Simple and clear. The questions asked should be simple, clear and short. The
answers to these questions should be precise. The questions should be designed in
such a manner that their interpretation should be easy.
3. Proper arrangement of questions. The questions should be logically arranged.
In other words, proper order should be followed. For example, it will be illogical
to ask number of children before asking the marital status of the informant.
4. No personal questions. The questions which are too personal in nature, which
offend the feelings of the informants, should be avoided. Similarly, questions
which may hurt their religious feelings, emotions or sentiments, should be
avoided.
5. No mathematical calculations. The questions whose interpretation requires
mathematical computations should not be asked. For example, calculation of
average expenditure or percentage of consumption requirements etc, should not
be asked.
6. Cross examination. In order to verify any particular information, questions may
be set in such a way that the verification may be possible.
7. Instructions. The questionnaire should carry proper instructions defining the
way the answers are to be given. All the terms should be clearly defined. The
address, date and time of submitting the questionnaire should be clearly
mentioned.

Pilot Survey

Once the questionnaire is ready, it is advisable to conduct a try-out with a small group
which is known as Pilot Survey or. Pre-testing of the questionnaire. The pilot survey
helps in providing a preliminary idea about the survey. It helps in pre-testing of the
questionnaire, so as to know the shortcomings and drawbacks of the questions. Pilot
survey also helps in assessing the suitability of questions, clarity of instructions,
performance of enumerators and the cost and time involved in the actual survey.

3. Telephonic Interviews

In a telephone interview, the investigator asks questions over the telephone.

Telephonic interview can be conducted in shorter time. This method allows the
investigator to assist the respondent by clarifying the questions :

Suitability

Telephone interview method is suitable when:

> Respondents are reluctant to answer certain questions in personal interviews.

> When the investigation is to be conducted in shorter duration.
> Respondents own telephone connections.

Merits

1. Economical. This method involves relatively lower cost in terms of time and
efforts.
2. Wide coverage. Since telephone interviews can be conducted in shorter time,
enquiry can be conducted over a large area.
3. High response rate. This method ensures high response rate in the cases where the
respondents are reluctant to answer certain questions in personal interviews.
METHODS OF COLLECTION OF SECONDARY DATA

Published Sources

1. Government publications. Government organisations and departments of

central and state government publish current information along with statistical
facts on different topics. It is a reliable source of information.
2. Semi-Government publications. Municipalities and Metropolitan Councils
publish information regarding health, birth, death, education, sanitation etc. This
source of data is reliable in nature and is fairly used.
3. Reports of committees and commissions. Various committees and commissions
are appointed by central and state governments for case studies and suggestions.
Such bodies sometimes publish their work and findings.
4. Publications of international organisations. International statistics from official
publications of different international organisations like UNO, ILO, IMF, World
Bank etc. are a source of published secondary data.
5. Publications of research institutions. There are a large number of organisations
doing research on various subjects. Foundation of Scientific and Economic
Research and the National Council of Applied Economic Research are examples
of such institutions.
6. Journals and newspapers. Journals (eg, Monthly Statistics of Trade, Journal of
Industry and Trade) and newspapers (eg, Economic Times) regularly collect and
furnish data on various topics.

CENSUS AND SAMPLE SURVEYS

Census or Complete Enumeration

A survey, which includes every element of the population, is known as Census or the
Method of Complete Enumeration. If certain agencies are interested in studying the
total population in India, they have to obtain information from all the households in
rural and urban India. It is carried out every ten years. A house-to-house enquiry is
carried out, covering all households in India.

Demographic data on birth and death rates, literacy, employment, life expectancy,
size and composition of population, etc., are collected and published by the Registrar
General of India. The last Census of India was held in 2011.

According to the Census, 2011, population of India was 121.09 crore, which was
102.87 crore in 2001. Census 1901 indicated that the population of the country was
23.83 crore. Since then, in a period of 110 years, the population of the country has
increased by more than 97 crore. The average annual growth rate of population which
was 2.2 per cent per year in the decade 1971-81 came down to 1.97 per cent in
1991-2001 and 1.64 per cent during 2001-2011.

Merits of Census Method

Accurate and reliable. Since each and every item under the universe is studied,
census method has high degree of accuracy and data collected are fairly reliable.
Less chances of biasness. Since census method does not involve investigator's
discretion regarding selection of samples from the universe, there are less chances of
data collected being biased.
Extensive study of diverse items. Census method involves collection of meaningful
exhaustive information as all items of the universe are studied.

Demerits of Census Method

1. Expensive. Since census method involves extensive study of diverse items, it is

costly and is generally used for investigations undertaken by government and big
institutions.
2. Large manpower requirement. Census method requires large number of well
trained enumerators which may become difficult in case they are either not available
or are required to be trained.
3. Unsuitable for large case studies. It may become difficult to cover each and every
item if items under universe are large in number.

Population and Sample

Population or the Universe in statistics means totality of the items under study. Thus,
the Population or the Universe is a group to which the results of the study are
intended to apply.

A population is always all the individuals / items who possess certain characteristics
(or a set of characteristics), according to the purpose of the survey. The first task in
selecting a sample is to identify the population. Once the population is identified, the
researcher selects a method of studying it. If the researcher finds that survey of the
whole population is not possible, then he/ she may decide to select a Representative
Sample:

A sample refers to a group or section of the population from which information is to

be obtained. A good sample (representative sample) is generally smaller than the
population and is capable of providing reasonably accurate information about the
population at a much lower cost and shorter time.

Sample method should be used when :

(i) Size of the universe is very large.
(ii) When more accuracy is not required.
(iii) When an extensive study is not necessary.
10) When different items of the population are broadly similar.
(v) When census method is not applicable.

Merits of Sample Method

1. Inexpensive. This method is economical in terms of time, money and efforts

involved as only some units of the population are studied.
2. Useful for large investigations. Sample method is more feasible for large
investigations as compared to census method which involves huge cost.
3. Error identification. Since only a limited number of items are studied under
sample method, error identification becomes easier.
5. Scientific. This method is considered to be scientific method of data collection as
the samples can be easily investigated from various angles.

Demerits

1. Biased. It may involve investigator's biasness in the selection of the samples, so

the results can be biased and partial.
2. Inaccurate results. If the representative samples do not represent the
characteristics of the entire population, the investigator may get inaccurate results.
3. Difficult to frame samples. It is difficult to select a sample that represents the
characteristics of the entire universe, if the items in the universe are very diverse.
4. Technical knowledge required. Sampling method is technical by nature.
Specialised knowledge is required for selecting a sample and people with such
technical knowledge are not easily available.

Probability Sampling Methods/ Random Sampling

As the name suggests, random sampling is one where the individual units from the
population (samples) are selected at random. The government wants to determine the
impact of the rise in petrol price on the household budget of a particular locality. For
this, a representative (random) sample of 30 households has to be taken and studied.
The names of all 300 households of that area are written on paper and mixed, then 30
names to be interviewed are selected one by one.

In random sampling, every individual has an equal chance of being selected. In the
above example, all 300 sampling units (also called sampling frame) of the population
got an equal chance of being included in the sample of 30 units and hence the sample,
such drawn, is a random sample. This is also called lottery method. Nowadays
computer programmes are used to select random samples.

Non-Random Sampling

In a non-random sampling method all the units of the population do not have an
equal chance of being selected and convenience or judgement of the investigator
plays an important role in selection of the sample. They are mainly selected on the
basis of judgment, purpose, convenience or quota and are non-random samples.

SAMPLING AND NON-SAMPLING ERRORS

1. Sampling Errors

The purpose of the sample is to get one or more estimate of the population
parameters. Sampling error refers to the difference between the sample estimate and
the corresponding population parameter (actual value of the characteristic of the
population for example, average income, etc). Thus, the difference between the
actual value of a parameter of the population and its estimate (from the sample)
is the sampling error. It is possible to reduce the magnitude of sampling error by
taking a larger sample.

2. Non-Sampling Errors

The errors which arise at the stages of ascertainment (acquiring, organising) and
analysis of data are called non-sampling errors. These are more serious than sampling
errors because where sampling errors can be minimised by taking a larger sample,
non-sampling errors can not be minimised even by taking a larger sample. Even
census can contain non-sampling errors.
CENSUS OF INDIA AND NSSO

There are some agencies both at the national and state level to collect process and
tabulate the statistical data. Some of the agencies at the national level are Census of
India, National Sample Survey (NSS), Central Statistics Office (CSO), Registrar
General of India (RGI), Directorate General of Commercial Intelligence and Statistics
(DGCIS), Labour Bureau, etc. The Census of India provides the most complete and
continuous demographic record of population. The Census is being regularly
conducted every ten years since 1881. The first Census after Independence was
conducted in 1951.
The Census officials collect information on various aspects of population such as the
size, density, sex ratio, literacy, migration, rural-urban distribution, etc. Census data is
interpreted and analysed to understand many economic and social issues in India.

The NSS was established by the Government of India to conduct nationwide surveys
on socio-economic issues. The NSS does continuous surveys in successive rounds.
NSS provides periodic estimates of literacy, school enrolment, utilisation of
educational services, employment, unemployment, manufacturing and service sector
enterprises, morbidity, maternity, child care, utilisation of the public distribution
system etc.

The NSS 60th round survey (January-June 2004) was on morbidity and healthcare.
The NSS 68th round survey (2011-12) was on consumer expenditure. The NSS also
collects details of industrial activities and retail prices for various goods. They are
used by Government of India for planning purposes.