Revision Notes for Class 11 Economics (Statistics For Economics)

Chapter 2 – Collection OF Data

Data: Refers to factual information, figures, or statistics that serve as the foundation for
analysis and decision-making.

Importance of Data:

1. Helps in understanding economic conditions.

2. Facilitates decision-making and problem-solving in research.

Types of Data:

Primary Data: Data collected by the investigator directly for the first time. It is original
and specific to the study.

▪ Example: Survey responses collected through questionnaires.

Secondary Data: Data that already exists, collected by someone else for a different
purpose but used in the current research.

▪ Example: National census reports.

A. Primary Data

Information was collected directly from the source by the researcher for the first time.

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 Characteristics:

1. Highly reliable as it is specific to the research objective.

2. Often time-consuming and expensive to collect.

Methods of Collecting Primary Data:

3. Direct Personal Investigation:

▪ The investigator personally interacts with respondents and gathers data.

▪ Suitable for small-scale studies.

▪ Example: Interviewing farmers about their crop yield.

4. Indirect Oral Investigation:

▪ Information is collected from third parties who know the subject.

▪ Example: Gathering information about an accident from witnesses.

5. Schedules and Questionnaires:

▪ Schedule: The investigator fills the data collection form based on respondents'
answers.

▪ Questionnaire: A set of written questions provided to respondents for them to

fill.

6. Local Reports:

Information is collected through local sources, such as community leaders or

officials.

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 B. Secondary Data

Data is collected and recorded by someone else for their purposes but used by another
researcher.

Characteristics:

1. Saves time and cost as the data already exists.

2. May lack relevance or reliability for the current study.

Sources of Secondary Data:

3. Published Sources:

▪ Government publications like the Census of India, Economic Surveys, and

Reserve Bank reports.

▪ Trade journals, newspapers, magazines, and research articles.

4. Unpublished Sources:

Data from private records, personal diaries, organizational documents, or

unpublished government records.

Precautions While Using Secondary Data:

• Check the source reliability to ensure authenticity.

• Ensure the data is relevant to the current research problem.

• Examine the data collection methodology used by the source.

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 Differences Between Primary and Secondary Data

Sr.No Primary Data Secondary Data

1. Collected by the investigator Already collected by others

2. Specific to current research Collected for other purposes

3. Requires more time and cost Less time-consuming and cheaper

4. More reliable and accurate Depends on the source

Census and Sampling Methods

1. Census Method:

a. Data is collected from every individual or unit in the entire population.

b. Suitable for small populations or studies requiring complete accuracy.

c. Advantages:

i. Highly accurate and reliable.

ii. Provides comprehensive information.

d. Disadvantages:

i. Expensive and time-consuming.

ii. Not practical for large populations.

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 2. Sampling Method:

a. Data is collected from a representative subset (sample) of the population.

b. Types of Sampling:

i. Random Sampling:

1. Each unit of the population has an equal chance of being

selected.

2. Example: Drawing lots or using random number generators.

ii. Stratified Sampling:

1. The population is divided into subgroups (strata), and samples

are taken from each group.

2. Example: Sampling urban and rural populations separately.

iii. Systematic Sampling:

1. Units are selected at regular intervals from a list.

2. Example: Selecting every 10th student in a school.

c. Advantages of Sampling:

i. Saves time and resources.

ii. Practical for large populations.

d. Disadvantages:

i. May introduce sampling errors.

ii. Less reliable if the sample is not representative.

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 Methods of Data Collection

1. Direct Interview:

o Involves face-to-face interaction with respondents to gather detailed

information.

o Example: Interviewing business owners about sales trends.

2. Telephone Surveys:

o Collecting data through phone calls, often used for quick surveys.

o Example: Telephonic feedback from customers.

3. Observation:

o Recording behavior or events directly without asking questions.

o Example: Observing traffic flow at an intersection.

4. Mail Questionnaire:

o Sending forms to respondents via mail for self-completion.

o Suitable for literate and geographically dispersed populations.

Errors in Data Collection

1. Sampling Errors:

o Errors that arise due to the method of sampling, such as selecting an

unrepresentative sample.

o This can be minimized by using appropriate sampling techniques and

increasing the sample size.

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 2. Non-sampling Errors:

o Errors occur during data collection, recording, or processing.

o Examples:

▪ Respondents providing false information.

▪ Misinterpretation of questions.

▪ Data entry mistakes.

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