1 DMBA103-STATISTICS FOR MANAGEMENT MANIPAL UNIVERSITY

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Define statistics. Explain different characteristics of

statistics.

Statistics Definition Statistics may be called the science of counting.

Statistics deals with the collection, classification, analysis, and interpretation of numerical
facts or data, and that, by use of mathematical theories of probability, imposes order and
regularity on aggregates of more or less disparate elements. Or quantitative data on any
subject, especially data comparing the distribution of some quantity for different sub classes
of the population: statistics for earnings by different age groups.

An example of statistical analysis is when we have to determine the number of people in a

town who watch TV out of the total population in the town. The small group of people is
called the sample here which is taken from the population.

Characteristics of Statistics

Some of the most important characteristics of statistics are as follows:

A reasonable standard of accuracy should be maintained in the collection

of statistics : Reasonable standard of accuracy should be maintained in collection of
statistics: Statistics deals with large number of data. Instead of counting each and every
item, Statisticians take a sample and apply the result thus obtained from sample to the whole
group.

It consists of aggregates of facts: Single, isolated or unrelated figures are not

statistics, because they are not comparable. These figures tell nothing about any problem.
For example the age of a student or the price of a commodity is not statistics. Because they
are just abstract numbers. But when we consider age of a group of students, or the prices of
a basket of commodities it is statistics as they comparable. Statistics must be expressed as
aggregate of facts relating to any particular enquiry. Thus ‘not a datum’ but the data
represent statistics. Thus, a single numerical figure is not statistics. For example, the height
of an individual, the price of a certain commodity does not form statistics as are unrelated
and incomparable.

It is effected by many causes: Numerical figures should be affected by a large

number of causes. For example, statistics of the production of a crop are affected by various
factors s as the amount of rain fall, quality of seeds, amount of fertilizer used, etc.

It should be numerically expressed: Statistics are numerically expressed as it solely

deals with quantitative data. They are aggregate of facts as a single numerical fact cannot
be termed as statistics, and only then can these facts be compared and conclusion drawn
about the aggregate general facts. Statistics are quantitative phenomena. Mostly, statistical

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techniques deal with quantitative factors than with qualitative aspect. So statistics should be
always numerically expressed. For example, ‘there are 30 districts in Orissa’, is a numerical
statement. But the standard of living of the people of Orissa have improved over the years’ is
not a numerical statement. Here the first statement is statistical where as the second is not.
So the subjective statements relating to qualitative information like honesty, beauties etc. are
not statistics. Only statements which can be expressed numerically are statistics.

It must be enumerated or estimated accurately: Data may be collected either by

actual counting and measurement or by estimation. The figures obtained by counting and
measurement will be exact and accurate but the figures estimated can’t be as accurate as
those obtained by and measurement .The degree of accuracy of the estimated values
largely depends on the nature and purpose of the inquiry.

It should be collected in a systematic manner: A suitable plan should be

prepared for data collection and the work should be carried out in a systematic manner. If
the data are collected haphazardly, the conclusions may be wrong or miss leading.

It should be collected for a predetermined purpose: Statistics should be capable

of being placed in relation to each other .The numerical data should be comparable, as
statistics are collected mostly for the purpose of comparisons. The numerical data collected
constitutes statistics if they are comparable. In order to make valid comparisons, the data
should be homogeneous and uniform.

It should be capable of being placed in relation to each other: The last but not
the least important characteristics of the data to be called statistics is that it should be
capable of being placed in relation to each other. This means that the data should be of
homogeneous character to allow for comparison between them.

Define statistical survey. Explain different methods of

data collection.

Statistical surveys are collections of information about items in a population.

Surveys can be grouped into numerical and categorical types. A numerical survey is to get
numbers as replies. Surveys of human populations and institutions are common in political
polling and government, health, social science and marketing research. A survey may
concentrate on opinions or factual information depending on its purpose.

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Determine your objectives, Selection of respondents, Create a data analysis plan, Develop
the survey, Pre-test the survey ,Distribute and conduct the survey ,Analyse the data ,Report
the results.

The main sources of the data collections methods are “Data”. Data can be classified into two
types, namely primary data and secondary data. The primary importance of data collection in
any research or business process is that it helps to determine many important things about
the company, particularly the performance. So, the data collection process plays an
important role in all the streams. Depending on the type of data, the data collection method
is divided into two categories namely,

Primary Data Collection methods, Secondary Data Collection methods

Primary Data Collection methods

Direct personal investigation direct personal investigation is the method in which data are
collected by the investigator personally from sources concerned. ... collected data are
uniform because they are collected by one person. Here, the investigator himself visits the
persons those are source of the data and collects necessary information either through
interview with the persons concerned or through observation of the data on the spot. This
method is suitable where intensive study of any phenomenon is required.

Indirect oral investigation Here, the investigator collects the data indirectly by interviewing
persons who are known to be close to the original persons or the incidence. This method is
adopted when the original persons are not found or found to be reluctant to provide the
required information. In this method a list of questions is prepared, and the witnesses are
invited and made to answer the questions. The answers are recorded by the investigators.

Information through correspondents in this method, the investigator does not work but
appoints local agents or enumerators in different parts of the area. These agents or
enumerators are asked to collect information and transmit it to the investigator. This method
is often adopted by government, semi-government and bigger private institutions to collect
the information for any purpose.

Telephonic interview. On today’s market research landscape, new and innovative data
collection methods are taking advantage of the web and email to reach more samples,
gather more intelligence, and generate more actionable insights.

Structured telephone interviews – are usually shorter and consist of closed questions. Used
to gather quantitative data.

Semi-structured telephone interviews – consist of a mixture of closed and open questions to

gather quantitative and qualitative data.

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In-depth telephone interviews – consist of mainly open-ended questions to gather qualitative

data. These interviews are longer in length and a discussion guide of topics is often used
instead of a structured questionnaire.

Mailed questionnaire. An important method for the collection of data used for large area is
that of questionnaires. In this method, a list of questions is prepared relating to the problem
under investigation, is printed and then sent out to the informants through post. It is
requested that it may be returned to the investigator properly filled up. A covering letter is
also sent with the questionnaire. A stamped self-addressed envelope is also attached.

The questionnaire filled by enumerators. In this method, list of questions or schedules are
sent to the informants through the enumerators. They read the questions to the informants
and record their answers on the same schedules. At first, enumerator explains the aims and
objectives of the enquiry and asks them for co-operation.

Secondary Data Collection Methods

Secondary data refers to data that is collected by someone other than the primary user.
Common sources of secondary data for social science include censuses, information
collected by government departments, organizational records and data that was originally
collected for other research purposes.

Data collected from a source that has already been published in any form is called
as secondary data. The review of literature in any research is based on secondary data. It is
collected by someone else for some other purpose (but being utilized by the
investigator for another purpose). For examples, Census data being used to analyse the
impact of education on career choice and earning. Common sources of secondary data for
social science include censuses, organizational records and data collected through
qualitative methodologies or qualitative research. Secondary data is essential, since it
is impossible to conduct a new survey that can adequately capture past change and/or
developments. Sources of Secondary Data: The following are some ways of collecting
secondary data –

Government publications.

Books

Public records.

Biographies, Historical and statistical documents.

Newspapers

Published censuses or other statistical data

Data archives

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Internet articles

Research articles by other researchers (journals) , Technical and trade journals.

Databases,

Business documents.

Importance of Secondary Data: Secondary data can be less valid but its importance is still
there. Sometimes it is difficult to obtain primary data; in these cases getting information from
secondary sources is easier and possible. Sometimes primary data does not exist in such
situation one has to confine the research on secondary data. Sometimes primary data is
present but the respondents are not willing to reveal it in such case too secondary data can
suffice.

Explain different types of sampling techniques.

Sampling is a process used in statistical analysis in which a predetermined number
of observations are taken from a larger population. The methodology used to sample
from a larger population depends on the type of analysis being performed, but it may
include simple random sampling or systematic sampling.

Sampling in market research is of two types

Probability sampling

Non-probability sampling

Probability sampling: Probability sampling is a sampling technique where a researcher

sets a selection of a few criteria and chooses members of a population randomly. All the
members have an equal opportunity to be a part of the sample with this selection parameter.

There are four types of probability sampling techniques:

 Simple random sampling: One of the best probability sampling techniques that helps
in saving time and resources, is the Simple Random Sampling method. It is a reliable
method of obtaining information where every single member of a population is
chosen randomly, merely by chance. Each individual has the same probability of
being chosen to be a part of a sample.

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 Cluster sampling: Cluster sampling is a method where the researchers divide the
entire population into sections or clusters that represent a population. Clusters are
identified and included in a sample based on demographic parameters like age, sex,
location, etc. This makes it very simple for a survey creator to derive effective
inference from the feedback.
 Systematic sampling: Researchers use the systematic sampling method to choose
the sample members of a population at regular intervals. It requires the selection of a
starting point for the sample and sample size that can be repeated at regular
intervals. This type of sampling method has a predefined range, and hence this
sampling technique is the least time-consuming.
 Stratified random sampling: Stratified random sampling is a method in which the
researcher divides the population into smaller groups that don’t overlap but represent
the entire population. While sampling, these groups can be organized and then draw
a sample from each group separately.

Non-probability sampling: In non-probability sampling, the researcher chooses members

for research at random. This sampling method is not a fixed or predefined selection process.
This makes it difficult for all elements of a population to have equal opportunities to be
included in a sample.

 Convenience sampling is defined as a method adopted by researchers where they

collect market research data from a conveniently available pool of respondents. It is
the most commonly used sampling technique as it’s incredibly prompt,
uncomplicated, and economical. In many cases, members are readily approachable
to be a part of the sample.

 Judgmental or purposive sampling Judgmental sampling, also called purposive

sampling or authoritative sampling, is a non-probability sampling technique in which
the sample members are chosen only on the basis of the researcher’s knowledge
and judgment. As the researcher’s knowledge is instrumental in creating a sample in
this sampling technique, there are chances that the results obtained will be highly
accurate with a minimum margin of error. This sampling (a type of purposive
sampling) occurs when units are selected for inclusion in a study based on the
professional judgment of the researcher. This is in contrast to probability sampling
techniques in which units are drawn with some probability (e.g., randomly) from the
population of interest. This entry describes the common forms of judgment sampling
and discusses their advantages and limitations.

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 Snowball sampling Snowball sampling or chain-referral sampling is defined as a

non-probability sampling technique in which the samples have traits that are rare to
find. This is a sampling technique, in which existing subjects provide referrals to
recruit samples required for a research study.

 Quota sampling Quota sampling is a sampling methodology wherein data is collected

from a homogeneous group. It involves a two-step process where two variables can
be used to filter information from the population. It can easily be administered and
helps in quick comparison.

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