Economics: Class 11 (Part 2) — Chapter 2: Collection of Data

1. Introduction & Sources of Data

In statistics, Data is a vital tool that provides information to understand and solve economic problems. Economic variables change over time and across observations.

Variables and Observations

A Variable is a characteristic that can take different values (e.g., food grain production, income). It is typically represented by letters like $X$, $Y$, or $Z$. Each specific value of a variable is called an Observation.

Primary vs. Secondary Data

  • Primary Data: Data collected by an investigator first-hand through direct enquiry or survey. It is original in character.
  • Secondary Data: Data that has already been collected, processed, and tabulated by some other agency (e.g., government reports, websites, books).
2. Instrument Preparation & Questionnaires

The most common instrument used in surveys is a Questionnaire or interview schedule.

Principles of a Good Questionnaire

  • Should not be too long; questions should be kept to a minimum.
  • Should be easy to understand, avoiding ambiguous or difficult words.
  • Questions should move from general to specific.
  • Questions should be precise and clear, avoiding double negatives (e.g., "Don't you think...").
  • Should not be leading questions that bias the respondent.

Types of Questions

  • Closed-ended (Structured) Questions: These can be two-way (Yes/No) or multiple-choice. They are easy to use, score, and analyze, but can restrict respondents' choices.
  • Open-ended (Unstructured) Questions: These allow for individualized, detailed responses but are difficult to interpret and score.
3. Modes of Data Collection & Pilot Surveys

There are three primary modes of collecting survey data, each with distinct trade-offs.

Comparison of Data Collection Modes

Mode Advantages Disadvantages
Personal Interviews Highest response rate; allows clarification of ambiguous questions; permits open-ended questions. Most expensive; possibility of interviewer influencing respondents; time-taking.
Mailed Questionnaires Least expensive; reaches remote areas; maintains anonymity; no interviewer bias. Cannot be used by illiterates; long response time; high rate of non-response; cannot watch reactions.
Telephone Interviews Relatively low cost; high response rate; less interviewer influence than personal. Limited access (only to telephone owners); reactions cannot be watched.

Pilot Survey

A Pilot Survey (or pre-testing) is a try-out of the questionnaire with a small group before the actual survey. It helps identify shortcomings, assess question suitability, and estimate the time and cost of the main survey.

4. Census and Sample Surveys

Census (Complete Enumeration)

A Census is a survey that includes every element of the population. In India, the Census is carried out every ten years to collect demographic data (birth/death rates, literacy, employment, etc.).

Sampling Concepts

  • Population (Universe): The totality of items under study possessing certain characteristics.
  • Sample: A smaller, representative group or section selected from the population to provide information.

Sampling Methods

  • Random Sampling: Every individual unit in the population has an equal chance of being selected (e.g., Lottery Method, Random Number Tables). It is unbiased.
  • Non-Random Sampling: Units are selected based on judgment, convenience, or quota. Not every unit has an equal chance of selection, introducing potential bias.
5. Sampling and Non-Sampling Errors

Sampling Errors

A Sampling Error is the difference between the sample estimate and the actual population parameter.

$$\text{Sampling Error} = \text{True Value} - \text{Estimated Value}$$

Sampling errors can be minimized by increasing the sample size.

Non-Sampling Errors

These are more serious than sampling errors and cannot be easily minimized by increasing sample size. They include:

  • Sampling Bias: Occurs when the sampling plan excludes certain parts of the target population.
  • Non-Response Errors: Occurs when selected respondents cannot be contacted or refuse to respond.
  • Errors in Data Acquisition: Arise from recording incorrect responses, measurement differences, or transcription mistakes.
6. Statistical Agencies in India

Several national and state-level agencies collect, process, and tabulate statistical data in India: