Collection of Data

RAJAN SETHI (B.COM [H] , B.ED. , M.A.
[Economics] 9999688995; 9999488995
Class–11th, Economics
Statistics
Chapter 2 – Collection of data
1. Important Terms
 Investigator: He/She is a person who conducts the statistical enquiry.
 Enumerator: He/She is a person who actually collects the data for
investigation from the field of enquiry.
 Respondent: He/She is a person from whom data is collected (or one who
responds to the enquiry)
 Statistical enquiry: It is an investigation on a topic by an agency
wherein relevant quantitativeinformation is collected.
 Survey: It is a method of gathering information from individuals on a
topic. It is conducted by askingquestions about a topic from a selected
group of people.
2. Sources of Data
There are two sources of data: Primary data and Secondary data
Primary Secondary
Data Data
Data which is originally collected by Data which has already been
an investigator or agency for the first collected andprocessed by
time for some specific purpose some agency, other than the
directly from the field of enquiry. investigator, for a different purpose.
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RAJAN SETHI: 9999688995; 9999488995 (Maths and Economics) (Class 9th , 10th ,11th ,12th, B.A. , B. Com. , M.A. ,M. Com.)
Page: 1
RAJAN SETHI (B.COM [H] , B.ED. , M.A. [Economics] 9999688995; 9999488995
Data is more accurate and reliable as Data is less reliable as it has been
it is the original data collected by the collected bysomeone else for a
investigator himself for a specific different purpose or is Second-
purpose. hand data.
It requires more time and efforts for It requires less time and efforts as
data collection. data is already available.
It is more costly as more number of It is less costly as it is taken from a
enumerators are required to collect published or unpublished data source.
the data.
It is raw data on which statistical tools It is finished and processed data.

need to be applied.
E.g: Census data collected by the E.g: Data published in economic

government. survey
_____________________________________________________________________________________________
3. Methods of Primary Data Collection

(a) Direct Personal Investigation
(or Direct Personal Interview)
 Under this method, the investigator collects
data by having a direct face-to-face interview with
the respondent.
 The investigator goes to the field personally
and conducts an on-the-spot enquiry.
Suitability: When the area of investigation is not

very large and whenmaximum degree of accuracy is
required.
Merits :
1. The first hand information obtained by the investigator himself is
bound to be more reliable andaccurate.
2. The facial expressions or reactions of the respondent can be
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observed and some additionalinformation can also be gathered.

3. The investigator has the flexibility of clarifying ambiguous questions
and avoiding misinterpretationof questions.
Demerits :
1. There is a possibility of influencing the respondents.
2. It is more time consuming and more expensive.
3. It is not suitable if the area of enquiry is large or when many respondents
are to be interviewed.
(b) Indirect Oral Investigation:
 It is the method by which information is obtained not from the persons

regarding whom the information is needed.
 It is collected orally from other persons who are expected to possess the
necessary information.
 The person to whom these questions are put are called witnesses.
Suitability :
When the area of investigation is very large and secret information about
informant has to be gathered.
Merits :
1. This method is suitable when the area of investigation is very large.
2. It is economical in terms of time, money and manpower.
3. Under this method, an investigator can seek opinion of the experts.
4. This method is free from bias.
Demerits :
1. The results can be incorrect because information is obtained from other
person.
2. The degree of accuracy is low as compare to direct personal investigation.
3. The information collected from other person may not be comparable.

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4. The information is less reliable as compare to direct personal investigation.
(C) Information from correspondents:
 Under this method, the investigator appoints local persons or

correspondents at different places.
 Agents or correspondents regularly collect the data and send them to the
investigator.
Suitability :
1. When regular and continuous information is required.
2. When the area of investigation is very large.
3. When high degree of accuracy is not required.
Merits :
1. It is economical in terms of time, money and resources.
2. It is very useful for collecting regular information.
3. This method is suitable when the area of investigation is very large.
Demerits :
1. This method cannot be used where the degree of accuracy is required.
2. Agents or correspondents can be bias.
3. The information collected by different agents or correspondents may not be
comparable.
(d) Telephonic Interview
 Under this method, data is collected by the

investigator through an interviewwith the
respondent over the telephone.
Suitability: In case the respondent is reluctant to answer

certain questions in aface to face interview and data is to
be collected in a short period of time.
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Merits :
1. They are cheaper and can be conducted in short period of time.
2. The method can cover investigation over a large area.
3. It is possible to assist the respondent by clarifying the questions.
Demerits :
1. It has limited scope as it is not useful in case the respondent has no phone
connection.
2. Facial expressions or reactions of the respondents cannot be observed.
(e)Mailed questionnaire method (or Mailed Interview)
 Under this method, the investigator makes a questionnaire

pertaining to the field ofinvestigation which is sent to the
respondents along with a covering letter specifyingthe purpose
of the enquiry and a request to complete and return the same
by a given date.
 The respondents are also assured of secrecy of the

information providedby them.
Suitability : When the area of investigation is large and the

respondents are literate.
Merits :
1. It is less expensive and can be used to access remote areas.

2. Every question is interpreted by the respondent himself hence is free from
the personal bias of theinvestigator.
3. It is the best method when anonymity of the respondent needs to be
maintained.
Demerits :
1. It can only be used if the respondents are literate.
2. It does not allow the investigator to see the reactions of the respondent.
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3. Accuracy or reliability of data cannot be testified.

4. There are chances of ‘No response’ or long response time because of mail
delays.
(f) Questionnaire filled by Enumerators method :
 Under this method, the enumerator personally visits informants along with a
questionnaire, ask questions and note down their replies in the questionnaire
in his own language.
Suitability :
1. When the area of investigation is large.
2. When trained enumerators are available.
3. When degree of accuracy is required.
Merits :
1. It is less expensive and can be used to access remote areas.
2. Every question is interpreted by the respondent himself hence is free from
the personal bias of the investigator.
3. It is the best method when anonymity of the respondent needs to be
maintained.
Demerits :
1. This method is too expensive as expenditure on training, salary,
remuneration are to be born by investigator or agency.
2. This method is very time consuming.
4. Qualities of good questionnaire :

OR Essentials of a good questionnaire
OR Important points to be kept in mind while drafting the questionnaire
A. Introduction and purpose of investigation

B. Reasonable number questions.
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C. Questions should be small & clear.

D. Questions should be arranged logically.
E. Instructions should be clear.
F. Proper space for answer.
G. Questions should be relevant to the investigation.
H. Personal questions should be avoided.
I. Avoid questions of calculations.
J. Cross Verification.
H. The question should not be controversial.
I. The question should not be Subjective
5. Pilot Survey (Pre-testing of the questionnaire)
 A try-out or trial-run of the questionnaire with a small group of respondents

is known as Pilot Survey.
 The pilot survey helps in providing a basic idea about the survey.
 In pre-testing of the questionnaire, it helps to know the shortcomings and
drawbacks of the questions.
 It also helps in assessing the suitability of questions, clarity of instructions,
performance of enumerators and the cost and time involved in the actual
survey.
6. Sources of Secondary Data

There are two types of sources of secondary data:
a) Published sources b) Unpublished sources
 Published sources include:
1) Official Government Publications like Annual Economic Survey,

Census of India reports, NSSO(National Sample Survey Organization)
reports published in Sarvekshana journal etc.
2) Semi Government Publications like reports published by
municipalities on births, deaths,education etc.
3) Reports of committees and commissions like Pay Commission reports,
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Education Commissionreports etc.

4) Publications of research institutes like reports of ICAR (Indian Council
of Agricultural Research),ISI (Indian Statistical Institute), reports of
NCAER (National Council of Applied Economic Research, Institute of
Economic Growth, reports of NCERT etc.
5) International Publications like reports of UNO (United Nations
Organization), IMF (InternationalMonetary Fund), World Bank etc.
6) Newspapers and Magazines like data collected by Economic Times,
Financial Express, OutlookMoney etc.
 Unpublished sources include: unpublished statistical material

maintained by research scholars, private investigation agencies, hospital
administration, school administration and private firms etc.
 Limitations of Secondary data
1) One may not be sure of the method or procedure adopted for collecting the
data.
2) It may be influenced by the personal bias of the investigator.
3) It may lack accuracy as data was collected for a different purpose.
4) The data may be outdated or may not cover the full period of investigation.
 Precautions while using secondary data

1) Suitability for the purpose: The investigator must ensure that the data is
suitable for the purpose ofenquiry by checking the nature and scope of
data as well as the time period covered.
2) Reliability of the data: The reliability of the data can be checked by the
experience of the agencysource of information and the method of data
collection used.
3) Adequacy and accuracy: It is necessary to use adequate data to avoid
biases leading to erroneous orinaccurate results. One should keep in mind
the degree of accuracy maintained by each investigator.
7. Primary Data Collection Techniques: Census and Sampling methods
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Census Method Sampling method

It is a method of collecting data It is a method of collecting data
where data iscollected from each where only some representative
and every element of the items of the population (part of the
population or universe and there universe or population) are selected
is 100% enumeration. for the study.
It is more reliable and accurate It is less reliable and less accurate
since there is100% enumeration. since only partof the universe is
taken into account.
It is more costly and time consuming It is less costly and less time
consuming.
It requires more number of It requires less number of
enumerators. enumerators.
It is difficult to verify or crosscheck
the data. It is easier to verify or cross-
May not be possible to verify in check since itinvolves less
case of largeamount of data. data.
E.g: Data collected by Census of E.g: Sampling data collected by
India. NSSO.
 Suitability of Census over Sampling:

1. Can be used either when the population is homogeneous (similar
characteristics) or heterogeneous.
2. When the area of investigation is limited.
3. When high degree of accuracy is desirable.
 Suitability of Sampling over Census:
1. When the area of investigation is large and population is homogeneous.
2. When there are time and cost constraints (less time and budget).
3. When less number of enumerators are available.
 Merits of census method
1. It provides an intensive and in-depth information covering many facets

of the population. For Example: In population census, many
characteristics or attributes like age, marital status, incomelevels etc.
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can be obtained at the same time.

2. There is high degree of accuracy since each and every item of the universe is
taken into account.
3. It can be used even when the population is not homogeneous.
 Demerits of census method
1. It is expensive since is to be collected from each and every item of the

universe. Especially so whenthe population is very large.
2. More time and manpower is required to collect large volumes of data and
for its its further analysisand interpretation.
3. It is difficult to cross-check and verify the data and if the data is huge, it may
even be impossible.
 Merits of sampling method
1. It is more economical (less costly) than census method as only part of

the population Is taken intoaccount.
2. It takes less time and less number of enumerators to collect the data.
3. It can be cross checked and verified as the data involved is not very large.
 Demerits of sampling method
1. Since the results of sampling are based only on part of the population, it may
not be 100% accurate.
2. The investigator’s bias may be involved in the selection of the sample.
3. It may not be as effective in case the population is heterogeneous.
8. Types of sampling methods
Random Sampling (Probability Non- Random Sampling (Non-

Sampling) Probability Sampling)
In this kind of sampling each and In this kind of sampling each and
every item ofthe universe has an every item of theuniverse does not
equal chance of being selected in have an equal chance of being
the sample. selected in the sample and
convenience or judgement of the
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investigator plays an important

role in selection of the sample.
Selection is by chance not by Selection is not by chance but by

choice of theinvestigator. choice of theinvestigator.
Personal bias of the investigator is Personal bias of the investigator is

not involved. involved.
Example: Lottery method, Example: Judgement sampling,

stratified randomsampling, conveniencesampling and quota
systematic random sampling sampling
 Random Sampling (Probability Sampling)
Simple / Unrestricted Random Restricted Random Sampling

Sampling
Stratified Systematic
 Simple Random Sampling

A simple random sampling is one in which every item of the population has an
equal chance of beingselected.
 LOTTERY METHOD:
 In this method, all items of the population are numbered or named on

separatepaper slips which are then placed in a bowl and mixed thoroughly.
 The elements are then selected randomly from the bowl according to the
required sample size.
Merits
1) Personal bias of the investigator is not involved.
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2) It is based on the rules of probability.
Demerits
1) It is time consuming especially if the population is large as all the elements
have to be numbered ornamed and then the sample is drawn.
2) For a small population, the sample may not be representative of the
population.
 RANDOM NUMBER TABLE METHOD:
 Random number tables have been used in statistics for tasks such as
selected random samples. This was much more effective than manually
selecting the random samples.
 Random selection of the sample can be made by use of random numbers.

Random number table is a table of numbers generated by scrambling the
digits 0,1,2,3,……….9.in a random manner.
Merits
1) Personal bias of the investigator is not involved.
2) It is based on the rules of probability.
Demerits
1) It is time consuming especially if the population is large as all the
elements have to be numbered ornamed and then the sample is drawn.
2) For a small population, the sample may not be representative of the
population.
 Restricted Random Sampling

A Restricted random sampling can be classified into Stratified Random Sampling
and Systematic Random Sampling.
 Stratified Random Sampling

In this method, the universe or the entire population is first divided into a
number of homogeneous groups or ‘strata’ and then the required number of
items are selected randomly from each group as per the sample size.
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Suitability:
when the population is heterogeneous. This ensures that all the
characteristics of a heterogeneous population are adequately
represented in the sample.
For example: If a sample of 10 is to be drawn representing all the types of
occupation in a locality, The population is first divided into homogeneous
strata of different types of occupations in the localitysuch as Teachers,
Lawyers, Doctors, Businessmen, Engineers etc. After this, the sample is
drawn randomly from each of these groups so that the resulting sample is
representative of the heterogeneouspopulation.
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Merits :
1. The sample is more representative of the population and hence is useful

in case the population is heterogeneous.
2. Personal bias of the investigator is not involved.
Demerits :
1. It requires complete knowledge regarding the diverse characteristics of the

population.
2. It is difficult to ascertain the different strata or groups in the population.
3. The stratified samples, if widely distributed, may prove to be expensive and
time consuming.
 Systematic Random Sampling (Quasi Random Sampling)
In this method, the elements of the population are first listed or ordered
alphabetically or numericallyand then the sample is selected by taking every
Nth item from the list where K is the interval size.
N (interval Size) = Size of the population/

Size of the sample
The randomness lies in the choice of the first sample item.

For example: If a sample of 4 students is to be drawn from a population
of a group of 12 students,The students are first ordered alphabetically
and then the interval size is calculated as:
N (interval Size) = 12/4 i.e. N= 3
Hence, the sample is then drawn by taking every 3rd student from the group.
The randomness lies in the choice of the first student. E.g: If the 2nd student is
chosen, the next would be the 5th, followed by the 8th and so on.
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Merits :
1. It is less time consuming and less effort is required.

2. Personal bias of the investigator is not involved.
Demerits :
1. Complete knowledge about the population from which the sample is to be

drawn is required.
2. It is not suitable for a large population since it would be difficult to prepare the
sampling frame.
Non- Random Sampling (Non-Probability

Sampling)
Judgement/Deliberate/Purpos Quota Sampling Convenience

ive Sampling
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 Judgement/ Deliberate Sampling
 In this method, the sample items are chosen exclusively by the

judgement of the investigator. Hence, the chance of inclusion of some
items in the sample is very high while that of the others would be very
low.
 For example: An investigator who wants to conduct a survey to ascertain
the choice of streams in a school, may select 50 students who, according
to his judgement or opinion, are representative of thepopulation.
Merits :
1. It is an easy method as it does not involve complicated selection procedures.

2. It prevents unnecessary and irrelevant items from being selected in the
sample.
Demerits :
1. Personal bias of the investigator is involved.
2. The investigator should have full knowledge about the population
without which there could beerror in his judgement.
 Quota Sampling
 Under this method, the items of the population are first sub-divided
into various groups and then aquota (number of items to be selected
from each subgroup) is fixed.
 Within the given quota, the selection of the sample units depends
upon the personal judgement of the investigator.
 For example: In a product survey, it may be decided that out of the

total population, 50% should befemales who are housewives, 30 %
should be school going girls while the remaining 20% should be
working females. Within the quota, the investigator is free to select
the people to be interviewed.
 Such sampling is used for opinion polls and market surveys of new
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products.
Merits :
1. It is very economical and gives more reliable results.

2. It is easy to administer and the sample can be selected to suit the enquiry.
Demerits :
1. It involves personal bias of the investigator.

2. It is not possible to estimate the degree of accuracy achieved.
 Convenience Sampling
 In this method, the sample items are selected according the convenience of
the investigator.
 For example: If a sample of 20 students is to be made to study the quality of

education imparted in schools, the investigator may choose students from
the schools near his residence or place of work forhis convenience.
Merits :
1. It is less time consuming and less costly.

2. It is convenient and the sample can be easily located and contacted by the
investigator.
Demerits :
1. Personal bias of the investigator is involved.

2. The results may be misleading or unsatisfactory as the sample may not
represent the universe orgiven population.
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9. Important government agencies of data:

Two important agencies at the national level which collect, process and
tabulate data on importanteconomic and social issues are:
 Census of India
1. The Census of India provides the most complete and continuous demographic
record of population.
2. The Census is being regularly conducted every ten years since 1881.
The first Census afterIndependence was conducted in 1951.
3. The Census officials collect information on various aspects of population
such as the size, density,sex ratio, literacy, migration, rural-urban
distribution, etc.
4. Census data is interpreted and analysed to understand many economic and
social issues in India.
 National Sample Survey Office (NSSO)
1. The NSS or National Sample Survey came into existence in 1950 and
was reorganized as NSSO in1970.
2. The NSSO was established by the Government of India to conduct
nationwide surveys on socio-economic issues. It conducts continuous
surveys in successive rounds.
3. The data collected by NSSO are released through reports and its quarterly
journal Sarvekshana.
4. It provides periodic estimates of literacy, school enrolment utilization
of educational services,employment, unemployment, manufacturing
and service sector enterprises etc.
5. The NSSO also collects details of industrial activities and retail prices for
various goods.
 Few other agencies which collect data at the national level are:
 Central Statistics Office (CSO), Registrar General of India (RGI),
Directorate General ofCommercial Intelligence and Statistics
(DGCIS), Labour Bureau, etc.
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Let’s
Revise Collection of Data
Sources of
Data
Primary Data Secondary Data

(First-hand/Original data) (Second-hand data)
Collected by the investigator Collected and processed by
himself for the first time some agency, other than the
directly from the field of investigator for a different
enquiry purpose
Methods of primary
data collection
Direct Personal
Telephonic
Published Unpublished
Interview/
Investigation Interview Sources Sources
Mailed
Questionnaire
method
Primary Data Collection

Techniques
Census Sampling
 100% enumeration  Part of the universe is taken into account
 More costly and time consuming  Less costly and less time required
 More accurate  Less accurate
 Difficult to verify /crosscheck  Can be verified
 More enumerators required  Requires less manpower
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Types of Sampling
Random Non-Random
Each and every item of the universe does
Each and every item of the universe has an not have an equal chance of being selected
equal chance of being selected in the in the sample and convenience or
sample. judgement of the investigator plays an
Personal bias of investigator is not involved important role in selection of the sample.
Personal bias of investigator is involved
Simple
Restricted
(Unrestricted)
Judgement Convenience Quota
Stratified Systematic
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RAJAN SETHI (B.COM [H] , B.ED. , M.A.

[Economics] 9999688995; 9999488995

It is raw data on which statistical tools It is finished and processed data.

E.g: Census data collected by the E.g: Data published in economic

3. Methods of Primary Data Collection

Suitability: When the area of investigation is not

observed and some additionalinformation can also be gathered.

(b) Indirect Oral Investigation:

 It is the method by which information is obtained not from the persons

3. The information collected from other person may not be comparable.

4. The information is less reliable as compare to direct personal investigation.

(C) Information from correspondents:

 Under this method, the investigator appoints local persons or

(d) Telephonic Interview

 Under this method, data is collected by the

Suitability: In case the respondent is reluctant to answer

(e)Mailed questionnaire method (or Mailed Interview)

 Under this method, the investigator makes a questionnaire

 The respondents are also assured of secrecy of the

Suitability : When the area of investigation is large and the

1. It is less expensive and can be used to access remote areas.

3. Accuracy or reliability of data cannot be testified.

(f) Questionnaire filled by Enumerators method :

4. Qualities of good questionnaire :

A. Introduction and purpose of investigation

C. Questions should be small & clear.

5. Pilot Survey (Pre-testing of the questionnaire)

 A try-out or trial-run of the questionnaire with a small group of respondents

6. Sources of Secondary Data

 Published sources include:

1) Official Government Publications like Annual Economic Survey,

Education Commissionreports etc.

 Unpublished sources include: unpublished statistical material

 Precautions while using secondary data

7. Primary Data Collection Techniques: Census and Sampling methods

Census Method Sampling method

 Suitability of Census over Sampling:

 Merits of census method

1. It provides an intensive and in-depth information covering many facets

can be obtained at the same time.

1. It is expensive since is to be collected from each and every item of the

1. It is more economical (less costly) than census method as only part of

8. Types of sampling methods

Random Sampling (Probability Non- Random Sampling (Non-

investigator plays an important

Selection is by chance not by Selection is not by chance but by

Personal bias of the investigator is Personal bias of the investigator is

Example: Lottery method, Example: Judgement sampling,

 Random Sampling (Probability Sampling)

Simple / Unrestricted Random Restricted Random Sampling

 Simple Random Sampling

 In this method, all items of the population are numbered or named on

2) It is based on the rules of probability.

 RANDOM NUMBER TABLE METHOD:

 Random selection of the sample can be made by use of random numbers.

 Restricted Random Sampling

 Stratified Random Sampling

1. The sample is more representative of the population and hence is useful