Lesson 17: Collection and Presentation of Data
Master the foundations of economic data, from statistical definitions and primary vs. secondary collection methods to classification (variables vs. attributes) and modern presentation techniques like tabulation and bar diagrams.
Meaning & Core Characteristics of Data (Statistics)
Data (or Statistics) refers to quantitative information providing facts in an aggregate manner. Data is a plural term (singular: datum). In economics, quantitative figures provide the objective foundation for decision-making and analytical research.
Crucial Distinction: Single Fact vs. Aggregate of Facts
A single isolated figure (e.g., "Monika secured 95 marks in Mathematics") is merely a fact, NOT statistics, because it offers no comparison. However, marks secured by all 18 students in a class form data because they constitute an aggregate of facts enabling meaningful evaluation.
Importance of Statistical Data in Economics
Past expenditure data guides future budgetary planning (e.g., primary education funding). National income and population growth figures allow economists to forecast per capita income growth accurately.
Determining a nation's total output requires compiling statistical factor income data: wages/salaries for labor, rent for land, interest for capital, and profits for entrepreneurs.
Census data revealing 938 females per 1000 males in India (and 848 in Haryana) triggered targeted female child protection policies. Poverty data led directly to the MGNREGA 100-day employment guarantee.
Types of Data & Primary Collection Methods
A. Primary Data
Original SourceData originally collected for the first time by the investigator for a specific survey (e.g., interviewing villagers regarding tea/coffee consumption habits).
- 1. Direct Personal Investigation: Investigator directly interviews respondents. Highly reliable, but prone to investigator bias.
- 2. Indirect Investigation: Information gathered from knowledgeable third parties or government commissions.
- 3. Through Correspondents: Agents appointed in various locations pass data back (widely used by newspaper agencies).
- 4. Mailed Questionnaire: Structured forms mailed to respondents. Suitable strictly when respondents are literate.
- 5. Through Schedules: Enumerators/field workers carry schedules and fill in answers in their own handwriting. Essential when respondents are illiterate.
B. Secondary Data
Existing SourceData that has already been collected and processed by another agency or person. Primary to the collecting agency, but secondary to all subsequent users.
- RBI & SEBI Bulletins
- Trade Association reports
- Newspaper & financial statements
- International bodies (UNO, World Bank)
- Internal government records
- Institutional registers
- University research theses
Variables vs. Attributes & Statistical Series
Variable: Capable of being measured quantitatively in magnitude (e.g., height, weight, income, distance).
- Discrete Variable: Takes exact whole numerical values with definite breaks (e.g., number of children per family: 0, 1, 2, 3).
- Continuous Variable: Continuous scale measurement without breaks (e.g., height 60"–62", 62"–64").
Attribute: Qualitative characteristic that cannot be measured in numerical magnitude (e.g., beauty, bravery, intelligence, laziness).
Data Presentation: Tabulation, Bar Diagrams & Graphs
Tabulation is the systematic presentation of classified data in rows and columns.
Only the height/length of the bar represents magnitude. Width is uniform across all bars, with equal spacing between them. (e.g., Census birth rates).
Plots variable changes over time. X-axis represents time units (years/months), while Y-axis represents the quantitative variable (e.g., student enrollment from 2007 to 2011).