PROJECT FOR APPLICATION OF STATISTICAL METHODS IN ECONOMICS
CHAPTER 10
Project on Application of Statistical Methods
in Economics
Any project that we undertake for
studying a socio-economic problem
requires collection and analysis of data
on certain variables. The data may be
‘secondary’ (obtained from published
sources), or, they may be ‘primary’
(obtained by conducting a field survey
by the investigator himself). We have
discussed the methods of collection of
primary data (census and sampling
methods) and the related problems in
Chapter 2. At present let us note the
following points.
1. The Purpose and Aim of the
Study Must be Clearly Specified
For example, with a view to make an
assessment of the prevalence of
malpractices among sellers, we may
plan a study on ‘consumer awareness
among households’, or, to improve
efficiency in the production processes,
we may plan a study on ‘productivity
awareness among enterprises’.
2. Population to be Studied
If we are planning a field survey, to
assess consumer awareness among
105
households, we should specify the
target group of households, which we
want to consider. There are very rich
and very poor households. There are
also middle class households. They
differ significantly with regard to
awareness about quality of goods they
buy. Rural and urban households, and
literate and illiterate ones react
differently. Similarly, if we want to
study productivity awareness among
enterprises, we have large and small
firms, which would differ significantly
with regard to productivity awareness,
and so on.
3. Data to be Used
If we are using secondary data from
published sources, we must pay
attention to the definitions of the
variables on which data are to be
obtained. We should try to find out
how the data were collected. If they
are index numbers, for example, what
was the method of construction
(weights, coverage, etc.); if the data are
on output of firms, is it in value terms
at current, or, constant prices, etc.
106
We must use published data with
great care. Otherwise, we may arrive
at wrong conclusions.
If we are planning a field survey to
study consumer awareness among
households we note that the
population is not homogeneous (as
noted above). Therefore, we may either
restrict to a homogeneous group and
use the method of simple random
sampling or, adopt stratified random
sampling method. The stratified
random sampling method has been
discussed in Chapter 2.
4. Questionnaire
We should prepare the questionnaire
with great care, as suggested in
Chapter 2. The questionnaire may be
prepared in parts, as illustrated in
Appendix B.
As discussed in Chapter 2, we may
follow either the interview method,
INTRODUCTION TO STATISTICS
or, send questionnaires by mail to the
respondents. Both the methods have
their advantages and disadvantages
(see Chapter 2).
5. Analysis of Data
We may obtain the proportions of
households
(i) who examined goods when they
made any purchases
(ii) who reported to the supplier about
defective/adulterated items
(iii) proportion of households whose
complaints were attended by the
suppliers to their satisfaction
(iv) proportion of households who took
action by reporting to consumer
courts.
Do these proportions differ
significantly from stratum to stratum?
Do you conclude that educated
households have higher degree of
consumer awareness?