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M.C.O.-3
Research Methodology and Statistical Analysis
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information, data and solution. Student should must read and refer the official study material provided by the university.

Attempt all the questions:

Q. 1. Explain the various methods of collecting primary data pointing out their merits and demerits.
Ans. For collecting primary data, the investigator may choose any one of the following methods:
1. Observation method
2. Interview method
3. Through local reporters and correspondents
4. Through questionnaires
5. Through schedules.
1. Observation Method: The observation method is the most commonly used, specially in studies relating to
behavioural sciences. Under the observation method, the information is sought by way of investigator’s own direct
observation without asking from the respondent. But this sort of observation is not scientific observation. Observation
becomes a scientific tool and the method of data collection for the researcher, when it serves a formulated research
purpose, is systematically planned and recorded and is subject to checks and controls on validity and reliability.
Merits
1. The researcher is enabled to record the natural behaviour of the group.
2. The researcher can even gather information which could not easily be obtained if he observes in a dis-interested
fashion.
3. The researcher can even verify the truth of statements made by informants in the context of a questionnaire or
a schedule.
Demerits
1. It is an expensive method.
2. The information provided by this method is very limited.
3. Sometimes unforeseen factors may interfere with the observation task. At times, the fact that some people are
rarely accessible to direct observation creates obstacle for this method to collect data effectively.
2. Interview Method: The interview method of collecting data involves presentation of oral-verbal stimuli and
reply in terms of oral-verbal responses. This method can be used through: (i) direct personal interview, and (ii)
indirect oral interview.

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 (i) Direct Personal Interview: Under this method of collecting data, there is a face-to-face contact with the
persons from whom the information is to be obtained (known as informants). The interviewer asks them questions
pertaining to the survey and collects the desired information. Thus, if a person wants to collect data about the
working conditions of the workers of the Birla Textile Mill, Delhi, he would go to the Mill, contact the workers and
obtain the desired information. The information thus obtained is first-hand or original in character.
This method is adopted:
1. Where greater accuracy is required.
2. Where confidential data are to be collected.
3. Where intensive study is needed.
4. Where sufficient time is available.
Merits
1. Original (first-hand information) data are collected.
2. True and reliable data can be had.
3. Response will be more encouraging, because of personal approach.
4. A high degree of accuracy can be aimed.
5. The investigator can extract correct information.
6. Misinterpretations, if any, on the part of the informant can be avoided.
7. Uniformity and homogeneity can be maintained.
Demerits
1. It is unsuitable where the area is large.
2. It is expensive and time-consuming.
3. The chances of bias are more.
4. An untrained investigator will not bring good result.
5. One has to collect information according to the convenience of the informant.
(ii) Indirect Oral Interview: When the informant is reluctant to supply information, the method of indirect oral
investigation can be followed. Under this method the investigator approaches the witnesses or third parties, who are
in touch with the informant. The enumerator interviews the people, who are directly or indirectly connected with the
problem under study.
This system is more suitable, where the area to be studied is large. It is used when direct information cannot be
obtained. The system is generally adopted by governments.
Merits
1. It is simple and convenient.
2. It saves time, money and labour.
3. It can be used in the investigation of a large area.
4. The information is unbiased.
5. Adequate information can be had.
6. As the information is collected from different parties, a true account can be expected and all aspects of the
problem can be ascertained.
Demerits
1. Absence of direct contact is there; the information cannot be relied.
2. Interview with an improper man will spoil the results.

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 3. In order to get the real position, a sufficient number of persons are to be interviewed.
4. The careless attitude of the informant will affect the degree of accuracy.
5. Witnesses may colour the information according to their interests.
3. Information through local agents or correspondents: As the name indicates, local agents or correspondents
are appointed to collect the information. They collect the information and transmit it to the office or person. They do
this according to their own ways and tastes. This system is adopted by newspapers, periodicals, agencies, etc. when
the information is needed in different fields, for examples, riots, strikes, accidents, share markets, sports, politics,
etc. The informants are generally called correspondents.
Merits
1. Extensive information can be had.
2. Cheap and economical method.
3. Speedy information is available.
4. It is useful where information is needed regularly.
Demerits
1. The information may be biased.
2. Degree of accuracy cannot be maintained.
3. Uniformity cannot be maintained.
4. Data may not be original.
4. Mailed Questionnaire Method: Under this method, a list of questions pertaining to the survey (known as
questionnaire) is prepared and sent to the various informants by post. The questionnaire contains questions and
provides space for answers. A request is made to the informants through a covering letter to fill up the questionnaire
and send it back within a specified time.
Merits
1. This method of collecting data can be easily adopted where the field of investigation is very vast and the
informants are spread over a wide geographical area.
2. It is also relatively cheap and expeditious provided the informants respond in time.
3. On topics which might be embarrassing this method is generally superior to either personal interviews or
telephone method.
Limitations
1. This method can be adopted only where the informants are literate people so that they can understand written
questions and send the answers in writing.
2. It involves some uncertainty about the response. Co-operation on the part of informants may difficult to
presume.
3. The information supplied by the informants may not be correct and it may be difficult to verify the accuracy.
5. Schedules sent through Enumerators: It is the most widely used method of collection of primary data. A
number of enumerators are selected and trained. They are provided with standardized questionnaires. Specific training
and instructions are given to them for filling up schedules. Each enumerator will be in charge of a certain area. The
investigator goes to the informants along with the questionnaire and gets replies to the questions in the schedule and
records their answers. He explains clearly the object and the purpose of the enquiry. The difference between the
former and this method is that in the former method, the questionnaire is sent to the informants, whereas in this
method the investigator carries the schedule to the informant. This method is used by public organizations and
research institutions.

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Merits
1. This method is very useful in extensive enquiries.
2. It yields reliable and accurate results, because the enumerators are educated and trained.
3. The scope of the enquiry can also be greatly enlarged.
4. Even if the respondents are illiterate, this technique can be widely used.
5. As the enumerators personally obtain the information, there is less chance of non-response.
Demerits
1. This is a very costly method, as the enumerators are trained and paid for.
2. This method is time-consuming, because the enumerators go personally to obtain the information.
3. Personal bias of the enumerators may lead to false conclusion.
4. The quality of the collected data depends upon the personal qualities of the enumerator.
5. It is not suited to all persons due to its costliness.
Q. 2. (a) Explain the concept of skewness. How does it help in analysing the data?
Ans. Skewness: Literal meaning of skewness is ‘lack of symmetry’. We study skewness to have an idea about
the shape of the curve which we can draw with the help of the given frequency distribution. It helps us to determine
the nature and extent of the concentration of the observations towards the higher or lower values of the variable. In
a symmetrical frequency distribution which is unimodal, if the frequency curve or histogram is folded about the
ordinate at the mean, the two halves so obtained will coincide with each other. In other words, in a symmetrical
distribution equal distances on either side of the central value will have same frequencies and consequently both the
tails, (left and right), of the curve would also be equal in shape and length. A distribution is said to be skewed if:
(i) The frequency curve of the distribution is not a symmetric bell shaped curve but it is stretched more to one
side than to the other. In other words, it has a longer tail to one side (left or right) than to the other. A frequency
distribution for which the curve has a longer tail towards the right is said to be positively skewed and if the longer tail
lies towards the left, it is said to be negatively skewed.
SYMMETRICAL DISTRIBUTION

(ii) The values of Mean (M), median (Md) and mode (Mo) fall at different points i.e., they do not coincide.
(iii) Quartiles Q1 and Q3 are not equidistant from the median i.e.,

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 Q3 – Md  Md – Q1
(iv) The sum of the positive deviations from the median is not equal to the sum of the negative deviations from
the median.
(b) What is reporting? What are the different stages in the preparation of a report?
Ans. Reporting means informing through reports. The researcher has collected some facts and figures, analyzed
the same and arrived at certain conclusions. He has to inform or report the same to the parties interested.
As a research is a means of communication, we have to consider some basic questions which determine the
effectiveness of communications, namely, ‘who’ says “what” to “whom” in “which way” and with “what effect”.
1. The Target Audience: The first step in planning report writing is to determine the target audience. The form
and style of reporting and other aspects depend upon the type of the reader, for whom the report is intended.
The target audiences, may be classified into:
(1) the academic community
(2) the sponsors of research, and
(3) the general public.
2. The Communication Characteristics of the Audience: The second step in planning report writing is to
consider the selected audience’s communication characteristics. What is their level of knowledge and understanding?
What is the gap in knowledge on the subject between the readers and the writer. What is the kind of language–
scientific or journalistic.
The purpose of report is not communication with oneself, but communication with the target audience.
3. The Intended Purpose of the Report: Is it meant for evaluation by experts for the award of a degree or
diploma? It is to be used as a reference material by researcher and fellow scientists? Or it is meant for implementation
by a user organization? This intended purpose also determines the type and its contents and form the presentation.
4. The Type of Report: With reference to the intended use, the type of report to be prepared should be determined.
When the research is undertaken to fulfil the requirements of a degree or diploma, or funded by a research promotion
agency, the report is prepared as a comprehensive technical report.
5. The Scope of the Report: The next step is to determine the scope of the contents with reference to the type of
the report and its intended purpose.
6. The Style of Reporting: What should be the style of reporting? Should it be simple and clear or elegant and
pompous. These questions are decided with reference to the target audience.
7. The format of the Report: The next step is to plan the format of the report, which varies according to the type
of report.
8. Outline/Table of Contents: The final step in planning report writing is to prepare a detail outline for each of
the proposed chapters of the report.
Q. 3. Briefly comment on the following:
(a) Classification of data provides a basis for tabulation of data.
Ans. Classification of data is the process of arranging data in groups/classes on the basis of certain properties.
The classification of statistical data serves the following purposes:
1. It condenses the raw data into a form suitable for statistical analysis.
2. It removes complexities and highlights the features of the data.

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 3. It facilitates comparisons and in drawing inferences from the data. For example, if university students in a
particular course are divided according to sex, their results can be compared.
4. It provides information about the mutual relationships among elements of a data set. For example, based on
literacy and criminal tendency of a group of people, it can be established whether literacy has any impact or
not on criminal tendency.
5. It helps in statistical analysis by separating elements of the data set into homogeneous group and hence
brings out the points of similarity and dissimilarity.
Thus, classification is a preliminary to tabulation and it prepares the ground for proper presentation of statistical
facts because tabulation is nothing but arrangement of data in columns and rows and it is also designed to simplify
presentation of data for purpose of analysis and statistical inferences. Therefore, proper classification helps proper
tabulation.
(b) Research problem would be both abstract and of applied interest.
Ans. Selection of a Research Problem: The nature of the problem to be selected depends upon the level at
which the research is done. A problem appropriate for undergraduate/master degree students will necessary be a
modest one. A problem to be selected for M.Phil/Ph.D programme must be a major problem requiring comprehensive
treatment. On the other hand, a problem to be selected by an experienced academic research must be a complex
problem meant for making a significant contribution to the development or refinement of theory or to policy making.
The main point while selecting a research problem is that select a feasible and reachable problem which is
interesting to you and within your competence and manageable within the available time and resources, and at the
same time has some importance and social relevance and for which required facilities are available.
(c) Decision makers use index numbers as part of intermediate computations.
Ans. Decision makers use index numbers as part of intermediate computations to understand other information
better. Nominal income can be transformed into real income and nominal sales into real sales through an appropriate
index number. Consumer price index, also known as cost of living index, is arrived at for a specified group of
consumers in respect of prices of specific commodities and services which they usually purchase. This index serves
as an indicator of ‘real’ wages (or income) of the consumers. For example, an individual earns Rs. 100/- in the year
1970 and his earnings increase to Rs. 300/- in the year 1980. If during this period, consumer price index increases
from 100 to 400 then the consumer is not able to purchase the same quantity of different commodities with Rs. 300,
which he was able to purchase in the year 1970 with his income of Rs. 100/-. This means the real income has
declined. Thus real income can be calculated by dividing the actual income by dividing the consumer price index:

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 Therefore, the consumer’s real income in the year 1980 is Rs. 75/- as compared to his income of Rs. 100/- in the
year 1970. We can also say that because of price increase, even though his income has increased, his purchasing
power has decreased.
(d) Comparison between two things cannot be made unless they are really alike.
Ans. Comparative research is a research methodology in the social sciences that aims to make comparisons
across different countries or cultures. A major problem in comparative research is that the data sets in different
countries may define categories differently (for example by using different definitions of poverty) or may not use
the same categories. Comparative research, simply put, is the act of comparing two or more things with a view to
discovering something about one or all of the things being compared. This technique often utilizes multiple disciplines
in one study. When it comes to method, the majority agreement is that there is no methodology peculiar to comparative
research. The general method of comparing things is the same for comparative research as it is in our everyday
practice of comparison. Like cases are treated alike, and different cases are treated differently; the extent of difference
determines how differently cases are to be treated. If one is able to sufficiently distinguish two, carrying the research
conclusions will not be very helpful.
Q. 4. Write short notes on the following:
(a) Research Design
Ans. Research Design or Plan: A research design is a logical and systematic plan prepared for directing a
research study. It specifies the objectives of the study, the methodology and techniques to be adopted for achieving
the objectives. It constitutes the blue-print for the collection, measurement and analysis of data.
Without a plan, research work becomes unfocussed and aimless empirical wandering, the researcher would find
it difficult, laborious and time consuming to make adequate discriminations in the complex inter plan of factors
before him; he may not be able to decide which is relevant and which is not, and may get lost in a Welter of
irrelevancies.
A research plan prescribes the boundaries of research activities and enables the researcher to channel his energies
in the right work.
The format of a research plan may vary depending on the purpose for which the study is undertaken, but, in
general, the research plan of a researcher may cover the following essential sections:
1. Introduction: The introduction of a research plan should place the research problem in its historical perspective,
state the need for studying it, and the researcher’s precise interests in the study of the problem.
2. Statement of the problem: The research problem should be well defined, pointing out its core nature and its
importance. The issue relating to the problem may also be stated. This statement gives direction to the research
process.
3. Review of the previous studies: On the selected theme, some studies might have been previously made by
other. A review of available literature will bring out information on them. The salient features of those studies may
be briefly described and the gaps may be pointed out.
4. Scope of the study: The scope and dimensions of the study should be delimited with reference to the topical
scope-breadth and depth, geographical area to be covered, reference period, the type of institution/respondent to be
studied, the issue to be analyzed, etc. The purpose of this demarcation is to make the study, manageable in terms of
the researcher’s aim, interest and competence and available techniques, time, finance and facilities.

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 5. Objective of the study: The specific objectives of the study should be stated clearly. These refer to the
questions to which the researcher proposes to seek answers through the study. Although there is no limit to the
number of research objectives, it is desirable to limit the objectives to a reasonable number.
6. Conceptual model: This section is the heart of research plan. This is where the researcher formulates and
develops the structure of relationship among the variables he is investigating.
7. Hypothesis: These are logically deduced from the theoretical framework above. These refer to the anticipated
outcome or possible answers to the research questions. They should be conceptually clear, specific and simple.
8. Operational definition of concepts: The major concepts used in the title of the study, its objectives, the
investigative questions and the hypothesis should be identified. Each of them should be defined in operational terms
pertinent to the measurement criteria or operations.
9. The significance of the study: A careful statement of the value of the study and the possible application of its
finding helps to justify its importance and social relevance.
10. Geographical area to be covered: The territorial area to be covered by the study should be decided and
specified in the plan. The area to be chosen depends on the purpose of the study and time and other resources
available.
11. Reference period: This period may be one year or two or more years depending on the nature of the study
and availability of data.
12. Methodology: In this section, the overall typology of the design-experimental, descriptive, survey, case
study or historical study-is specified. Further the methods or methods to be adopted for collection of data-observation,
interviewing or mailing are specified.
13. Sampling plan: If the study requires collection of primary data from the field, the universe must be delineated,
and the method of sampling to be used for drawing the sample from the universe and the sample size must be stated.
14. Tools for gathering data: The tools, to be used for gathering data - interview schedule/guide or questionnaire
or check list etc. - are listed and each of them is described. The tools chosen should be appropriate to the methods to
be adopted for gathering data.
15. Plan of analysis: The statistics techniques to be used for analyzing the various techniques should be specified.
16. Chapter Scheme: The chapter scheme of the report/dissertation to be prepared for communicating the
findings of the study to the academic community and the users should be outlined and the purpose of each chapter
should be stated.
17. Time Budget: The time period required for each stage of work and the total time duration of the study are
specified.
18. Financial budget: This should include as estimate of the expected costs for the project under various major
categories like salary (if any), printing and stationary, postage, travel expenses, computation, secretarial and typing,
etc.
A research without a pre-drawn plan is like an ocean voyage without Mariner’s compass. The preparation of a
research plan for a study aids in establishing direction to the study and in knowing exactly what has to be done and
how and when it has to be done at every stage.
A research plan prescribes the boundaries of research activities and enables the researcher to channel his energies
in the right work.
The use of a research design prevents such a blind search and indiscriminate gathering of data and guide the
researcher to proceed in the right direction.

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 It also enables the researcher to anticipate potential problem of data gathering, organization of concepts,
measurement, etc.
(b) Statistical Derivatives
Statistical Derivative: Statistical derivatives are the quantities obtained by simple computation from the given
data. Though very easy to compute, they often give meaningful insight to the data. The three often used statistical
measures are percentage, ratio and rate. These measures point out an existing relationship among factors and thereby
help in better interpretation.
A percentage is the numerator of a fraction whose denominator is 100. In other words it is a fractional or decimal
parts of 100.
Two per cent may be written in any one of the following ways:
2 1
2%, 0.02, or
100 50
Addition, subtraction, multiplication and division of percentage are done in usual manner.
A ratio expresses a comparison between two quantities–it is relation between two like numbers or two like
values. The following are the names of ratios used in statistical work:
1. Distribution ratio: It is a ratio of the part to a total which includes that part also.
2. Interpret ratio: It is a ratio of a part in a total to the another part in the same total.
3. Time ratio: It expresses the changes in a series of values arrange in a time sequences.
Like ratio, rate is also a comparison of two or more figures, but not of the same variable. It may be a measure,
quantity, or frequency measured against another. It gives value to a variable according to a particular scale. Thus,
rate means amount of one variable per unit amount of some other variable.
(c) Normal Distribution
Ans. Normal Distribution: While Binomial and Poisson Distribution are discrete probability distributions,
Normal distribution is the most typical form of continuous distribution with very extensive and rigidly defined
properties. The graph of distribution is called normal curve, a bell shaped curve extended in both the directions,
arriving nearer and nearer to the horizontal axis but never touches it.
Properties:
(i) It is a continuous distribution with mean = µ and S.D = 
(ii) Mean = Median = Mode =µ
(iii) Q1 = µ – 0.67  and Q3 = µ + 0.67  so that Q.D = 0.67 
(iv) Mean Deviation = 0.80 
(v) All odd order central moments (namely, µ1, µ3, µ5 …) are equal to zero.
(vi) Skewness = Kurtosis = 0. Hence it is symmetric and mesokurtic.
(vii) The curve never touches the X-axis and extends on both sides to  and – 
(vii) Area between µ ±  = 68.27%
Area between µ ± 2 = 95.45%
Area between µ ± 3 = 99.73%
(ix) If x and y are normal variates with mean µ1 and µ2 and variances  and  22 then (x + y) follows normal with

2 2
mean (µ1 + µ2) and Variance σ + σ .
1 2

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 (x) P.d.f. of Normal Distribution, f (x)
2
1 – x–
e 2 – .
2 2
(d) Deflating of Indices
Ans. Deflating of Indices: Deflating a series refers to its correction for price changes. Thus, the series of money
wages can be corrected for price changes to find out the level of real wages. The corrected figures can then be
converted into index numbers for purposes of comparison. They will be known as Real wages indices. Such indices
show changes in the purchasing power of the money wages of the workers. This is technically known as deflating the
index number. This is achieved by constructing a money wage index with the same base as consumer price index and
dividing the former by the latter. Symbolically,

Index of money wages

Index of Real Wages =  100
Consumer price Index

Q. 5. Distinguish between the following:

(a) Cluster Sampling and Stratified Random Sampling
Ans. Cluster Sampling: There may be circumstances where preparation of sampling frame may be difficult if
not impossible. In addition to this, the geographical coverage of the population may be very extensive, consisting of
remote areas. In this method, the population is divided into various sub-groups such that these are heterogeneous
within and homogeneous between themselves. These sub-groups are known as cluster.
To obtain a cluster sample, a given number of cluster are chosen at random from all the clusters and all the items
covered by the selected clusters are included in the sample.
Stratified Sampling: In order to obtain a stratified random sample, the population is divided into various sub-
groups such that these are homogeneous within the heterogeneous between themselves. From each subgroup, also
known as stratum, a certain numbers of items are selected at random to make a ‘Stratified Random Sample’. Generally,
the number of items selected from each stratum is proortional to its size dis-proportionate stratified samples may
also be selected in certain cases.
The stratification of a population is done in order to ensure that all the characteristics of a heterogeneous population
are adequately represented in the sample. It also helps in increasing the accuracy of the results of the investigation.
In this case the total population is divided, depending on problem under study, into some recognizable sub-
divisions which are termed as clusters and a simple random sample of these clusters is drawn. We then observe,
measure and interview each and every unit in the selected clusters.
For example, if we are interested in obtaining the income or opinion data in a city, the whole city may be divided
into N different blocks and localities and a simple random sample of N blocks is drawn. The individuals in the
selected blocks determine the cluster sample.

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 Difference between the Cluster Sampling and Stratified Sampling is as follows:
Cluster Sampling Stratified Sampling
1. It is used when geographical coverage of the 1. It is used when the population is hetero-geneous.
population is very extensive, consisting of
remote areas.
2. The population is divided into various sub- 2. In this method population is divided into various
groups such that these groups are sub-groups such that these groups are
heterogeneous within and homogeneous homogeneous within and heterogeneous between
between themselves. themselves.
3. These sub-groups are known as clusters. 3. These sub-groups are called strata or stratum.

4. To obtain a cluster sample, a given number, a
cluster are chosen at random from all the
clusters and all the items covered by the
selected clusters are included in the sample.
4. From each sub-group or stratum, a certain number
of items are selected at random to make a
stratified random sample. Generally, the number
of items selected from each stratum is
proportional to its size.

(b) Simple Bar diagram and Multiple Bar Diagram

Ans. Simple Bar Diagram: Simple bar diagram is the simplest of the bar diagrams and is used frequently in
practice for the comparative study of two or more items or values of a single variable or a single classification or
category of data. For example, the data relating to sales, profits, production, population etc., for different periods
may be presented by bar diagrams. As already pointed out the magnitudes of the observations are represented by the
heights of the rectangles.
Multiple Bar Diagram: A limitation of the simple bar diagram was that it can be used to portray only a single
characteristic or category of the data. If two or more sets of inter-related phenomena or variables are to be presented
graphically, multiple bar diagrams are used. The technique of drawing multiple bar diagram basically same as that of
drawing simple bar diagram. In this case, a set of adjacent bars (one for each variable) is drawn. Proper and equal
spacing is given between different sets of the bars. To distinguish between the different bars in a set, different
colours, shades, dottings or crossings may be used and key or index to this effect may be given.
(c) Correlation and Regression
Ans. The difference between correlation and regression are:
Correlation Regression
1. Correlation is the relationship between two or 1. Regression means going back and it is a mathematical
more variable, which vary in sympathy with the measure showing the average relationship between
other in the same or the opposite direction.
two variables.
2. Both the variables X and Y are random variables. 2. Here x is a random variable and y is a fixed variable.
Sometimes both the variables may be random
variables.

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 3. It finds out the degree of relationship between two
variable and not the cause and effect of the variable.
4. It is used for testing and verifying the relation
between two variables and gives limited
information.
5. The coefficient of correlation is a relative measure.
The range of relationship lies between ± 1.
6. There may be non-sense correlation between two
variables.
7. It has limited application, because it is confined
only to linear relationship between the variables.
8. It is not very useful for further mathematical
treatment.
9. If the coefficient of correlation is positive, then the
two variables are positively correlated and vice
versa.
10.It is immaterial wheher X depends upon Y depends
upon X.
3. It indicates the cause and effect relationship between
the variables and establishes a function relationship.
4. Besides, verification,
it is used for the prediction of one value, in
relationship to the other given value.
5. Regression coefficient is an absolute figure. If we
know the value of the independent variable, we can
find the value of the dependent variable.
6. In regression there is no such non-sense regression.
7. It has wider application, as it studies linear and
nonlinear relationship between the variables.
8. It is widely used for further mathematical treatment.
9. The regression coefficient explains that the decrease
in one variable is associated with the increase in the
other variable.
10.There is a functional relationship between the two
variables so that we may identify between the
independent and dependent variables.

(d) Estimation and Testing of hypothesis.

Ans. Estimation: When data are collected by sampling from a population, the most important objective of
statistical analysis is to draw inferences or generalizations about that population from the information embodied in
the sample data. Statistical estimation, or briefly estimation, is concerned with the methods by which population
characteristics are estimated from sample information. It may be pointed out that the true value of a parameter is an
unknown constant that can be correctly ascertained only by an exhaustive study of the population. However, it is
ordinarily too expensive or it is infeasible to enumerate complete populations to obtain the required information. In
case of finite populations, the cost of complete censuses may be prohibitive and in case of infinite population,
complete enumerations are impossible. A realistic objective may be to obtain a guess or estimate of the unknown true
value or an interval of plausible values from the sample data and also to determine the accuracy of the procedure.
Statistical estimation procedures provide us with means of obtaining estimates of population parameters with desired
degrees of precision.
Testing of Hypothesis
This is also known as “Testing of Significance”. A hypothesis a pre-conceived notion/idea about the nature of a
population or about the value of its parameters. The statements like the distribution of heights of students of a
university are normally distributed, the number of road accidents per day in Delhi is 10 etc., one some examples of
a hypothesis.

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 The test of a hypothesis is a procedure by which we test the validity of a given statement about a population this
is done on the basis of a random sample drawn from it. The hypothesis to be tested is formed as null hypothesis,
denoted by Ho. This corresponding to any Ho is always define an alternative hypothesis. This hypothesis is denoted
by H/Ho, is alternate to Ho, i.e. if Ho is false then H is true and vice-versa.

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