In statistics, Data is a vital tool that provides information to understand and solve economic problems. Economic variables change over time and across 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.
The most common instrument used in surveys is a Questionnaire or interview schedule.
There are three primary modes of collecting survey data, each with distinct trade-offs.
| 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. |
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.
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.).
A Sampling Error is the difference between the sample estimate and the actual population parameter.
Sampling errors can be minimized by increasing the sample size.
These are more serious than sampling errors and cannot be easily minimized by increasing sample size. They include:
Several national and state-level agencies collect, process, and tabulate statistical data in India: