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Wednesday, 23 September 2015

Explain the meaning and type of ‘Data’ as applicable in any business. How would you classify and tabulate the data, support your answer with example

Everybody collects, interprets and uses information, much of it in numerical or statistical forms in day-to-day life. It is a common practice that people receive large quantities of information everyday through conversations, televisions, computers, the radios, newspapers, posters, notices and instructions. It is just because there is so much information available that people need to be able to absorb, select and reject it. In everyday life, in business and industry, certain statistical information is necessary and it is independent to know where to find it how to collect it. As consequences, everybody has to compare prices and quality before making any decision about what goods to buy.  As employees of any firm, people want to compare their salaries and working conditions, promotion opportunities and so on.  In time the firms on their part want to control costs and expand their profits.

One of the main functions of statistics is to provide information which will help on making decisions. Statistics provides the type of information by providing a description of the present, a profile of the past and an estimate of the future. The following are some of the objectives of collecting statistical information.
1. To describe the methods of collecting primary statistical information.
2. To consider the status involved in carrying out a survey.
3. To analyse the process involved in observation and interpreting.
4. To define and describe sampling.
5. To analyse the basis of sampling.
6. To describe a variety of sampling methods.
Statistical investigation is a comprehensive and requires systematic collection of data about some group of people or objects, describing and organizing the data, analyzing the data with the help of different statistical method, summarizing the analysis and using these results for making judgements, decisions and predictions.  The validity and accuracy of final judgement is most crucial and depends heavily on how well the data was collected in the first place.  The quality of data will greatly affect the conditions and hence at most importance must be given to this process and every possible precaution should be taken to ensure accuracy while collecting the data.
“Data is any group of observation or measurement related to the area of a business interest and to be used for decision making.”
Nature of data:
It may be noted that different types of data can be collected for different purposes. The data can be collected in connection with time or geographical location or in connection with time and location.  The following are the three types of data:
1. Time series data.                                               
2. Spatial data
3. Spacio-temporal data.
1.  Time series data:
It is a collection of a set of numerical values, collected over a period of time. The data might have been collected either at regular intervals of time or irregular intervals of time.
Example 1:
The following is the data for the three types of expenditures in rupees for a family for the four years 2001,2002,2003,2004.
Year
Food
Education
Others
Total
2001
3000
2000
3000
8000
2002
3500
3000
4000
10500
2003
4000
3500
5000
12500
2004
4500
5000
6000
16000




2. Spatial Data:
If the data collected is connected with that of a place, then it is termed as spatial data. For example, the data may be
i)    Number of runs scored by a batsman in different test matches in a test series at different places
ii)   District wise rainfall in Tamilnadu
iii)  Prices of silver in four metropolitan cities
Example 2:
The population of the southern states of India in 1991.
State
Population
Tamilnadu
5,56,38,318
Andhra Pradesh
6,63,04,854
Karnataka
4,48,17,398
Kerala
2,90,11,237
Pondicherry
7,89,416
   If the data collected is connected to the time as well as place then it is known as spacio temporal data.
3.  Spacio Temporal Data:
Example 3:
State
Population
1981
1991
Tamilnadu
4,82,97,456
5,56,38,318
Andhra Pradesh
5,34,03,619
6,63,04,854
Karnataka
3,70,43,451
4,48,17,398
Kerala
2,54,03,217
2,90,11,237
Pondicherry
6,04,136
7,89,416
Any statistical data can be classified under two categories depending upon the sources utilized. These  categories are,
Categories of data:
1. Primary data                              2.  Secondary data
1.  Primary data:
Primary data is the one, which is collected by the investigator himself for the purpose of a specific inquiry or study. Such data is original in character and is generated by survey conducted by individuals or research institution or any organisation.
Example 4:
If a researcher is interested to know the impact of noon-meal scheme for the school children, he has to undertake a survey and collect data on the opinion of parents and children by asking relevant questions. Such a data collected for the purpose is called primary data.
The primary data can be collected by the following five methods.
i)       Direct personal interviews.
ii)      Indirect Oral interviews.
iii)     Information from correspondents.
iv)    Mailed questionnaire method.
v)     Schedules sent through enumerators.
2.  Secondary Data:
Secondary data are those data which have been already collected and analysed by some earlier agency for its own use; and later the same data are used by a different agency.  According to W. A. Neiswanger, ‘ A primary source is a publication in which the data are published by the same authority which gathered and analysed them.  A secondary source is a publication, reporting the data which have been gathered by other authorities and for which others are responsible’.
Sources of Secondary data:
In most of the studies the investigator finds it impracticable to collect first-hand information on all related issues and as such he makes use of the data collected by others.  There is a vast amount of published information from which statistical studies may be made and fresh statistics are constantly in a state of production.
The sources of secondary data can broadly be classified under two heads:
i)    Published sources, and                   
ii)   Unpublished sources.
Classification of Data:
The collected data, also known as raw data or ungrouped data are always in an un organised form and need to be organised and presented in meaningful and readily comprehensible form in order to facilitate further statistical analysis.  It is, therefore, essential for an investigator to condense a mass of data into more and more comprehensible and assimilable form.  The process of grouping into different classes or sub classes according to some characteristics is known as classification, tabulation is concerned with the systematic arrangement and presentation of classified data. Thus classification is the first step in tabulation.
For Example, letters in the post office are classified according to their destinations viz., Delhi,  Madurai, Bangalore, Mumbai etc.,
Objects of Classification:
The following are main objectives of classifying the data:
i)       It condenses the mass of data in an easily assimilable form.
ii)      It eliminates unnecessary details.
iii)     It facilitates comparison and highlights the significant aspect of data.
iv)    It enables one to get a mental picture of the information and helps in drawing inferences.
v)     It helps in the statistical treatment of the information collected.
Types of Classification:
Statistical data are classified in respect of their characteristics. Broadly there are four basic types of classification namely
a)  Chronological classification
b)  Geographical classification
c)  Qualitative classification
d)  Quantitative classification
a) Chronological classification:
In chronological classification the collected data are arranged according to the order of time expressed in years, months, weeks, etc.  The data is generally classified in ascending order of time. For example, the data related with population, sales of a firm, imports and exports of a country are always subjected to chronological classification.
Example 5:
The estimates of birth rates in India during 1970 – 76 are
Year
1970
1971
1972
1973
1974
1975
1976
Birth Rate
36.8
36.9
36.6
34.6
34.5
35.2
34.2
    In this type of classification the data are classified according to geographical region or place. For instance, the production of paddy in different states in India, production of wheat in different countries etc.
b) Geographical classification:
Example 6:
Country
America
China
Denmark
France
India
Yield of wheat in (kg/acre)
1925
893
225
439
862
    In this type of classification data are classified on the basis of same attributes or quality like sex, literacy, religion, employment etc., Such attributes cannot be measured along with a scale.
c) Qualitative classification:
For example, if the population to be classified in respect to one attribute say sex, then we can classify them into two namely that of males and females. Similarly, they can also be classified into ‘employed’ or ‘unemployed’ on the basis of another attribute ‘employment’.
Thus when the classification is done with respect to one attribute, which is dichotomous in nature, two classes are formed, one possessing the attribute and the other not possessing the attribute. This type of classification is called simple or dichotomous classification.
A simple classification may be shown as:
The classification, where two or more attributes are considered and several classes are formed, is called a manifold classification.  For example, if we classify population simultaneously with respect to two attributes, e.g sex and employment, then population are first classified with respect to ‘sex’  into ‘ males’ and ‘ females’ . Each of these classes may then be further classified into ‘employment’ and ‘ unemployment’ on the basis of attribute ‘ employment’ and as such Population are classified into four classes namely.
i)       Male employed
ii)      Male unemployed
iii)     Female employed
iv)    Female unemployed
Still the classification may be further extended by considering other attributes like marital status etc. This can be explained by the following chart:

d) Quantitative classification:
Quantitative classification refers to the classification of data according to some characteristics that can be measured such as height, weight, etc., For example the students of a college may be classified according to weight as given below.
Weight (in lbs)
No of Students
90-100
50
100-110
200
110-120
260
120-130
360
130-140
90
140-150
40
Total
1000
In this type of classification there are two elements, namely (i) the variable (i.e) the weight in the above example, and (ii) the frequency in the number of students in each class. There are 50 students having weights ranging from 90 to 100 lb, 200 students having weight ranging between 100 to 110 lb and so on.
Tabulation:
Tabulation is the process of summarising classified or grouped data in the form of a table so that it is easily understood and an investigator is quickly able to locate the desired information. A table is a systematic arrangement of classified data in columns and rows. Thus, a statistical table makes it possible for the investigator to present a huge mass of data in a detailed and orderly form. It facilitates comparison and often reveals certain patterns in data which are otherwise not obvious. Classification and ‘Tabulation’, as a matter of fact, are not two distinct processes. Actually they go together.  Before tabulation data are classified and then displayed under different columns and rows of a table.
Advantages of Tabulation:
Statistical data arranged in a tabular form serve following objectives:
i)       It simplifies complex data and the data presented are easily understood.
ii)      It facilitates comparison of related facts.
iii)     It facilitates computation of various statistical measures like averages, dispersion, correlation etc.
iv)    It presents facts in minimum possible space and unnecessary repetitions and explanations are avoided. Moreover, the needed information can be easily located.
v)     Tabulated data are good for references and they make it easier to present the information in the form of graphs and diagrams.
Preparing a Table:
The making of a compact table itself an art. This should contain all the information needed within the smallest possible space. What the purpose of tabulation is and how the tabulated information is to be used are the main points to be kept in mind while preparing for a statistical table. An ideal table should consist of the following main parts:
1. Table number                                                2. Title of the table
3. Captions or column headings                        4. Stubs or row designation
5. Body of the table                                           6. Footnotes
7. Sources of data

Table Number: A table should be numbered for easy reference and identification. This number, if possible, should be written in the centre at the top of the table. Sometimes it is also written just before the title of the table.
Title: A good table should have a clearly worded, brief but unambiguous title explaining the nature of data contained in the table. It should also state arrangement of data and the period covered. The title should be placed centrally on the top of a table just below the table number (or just after table number in the same line).
Captions or column Headings: Captions in a table stand for brief and self explanatory headings of vertical columns. Captions may involve headings and sub-headings as well. The unit of data contained should also be given for each column. Usually, a relatively less important and shorter classification should be tabulated in the columns.
Stubs or Row Designations: Stubs stands for brief and self explanatory headings of horizontal rows. Normally, a relatively more important classification is given in rows. Also a variable with a large number of classes is usually represented in rows. For example, rows may stand for score of classes and columns for data related to sex of students. In the process, there will be many rows for scores classes but only two columns for male and female students.
A model structure of a table is given below:
<Table Number>    <Title of the Table>
Sub Heading
Caption Headings
Total
Caption Sub-Headings
Stub Sub-Headings
Body

Total


Foot notes:
Sources Note:
Body: The body of the table contains the numerical information of frequency of observations in the different cells. This arrangement of data is according to the description of captions and stubs. 
Footnotes: Footnotes are given at the foot of the table for explanation of any fact or information included in the table which needs some explanation. Thus, they are meant for explaining or providing further details about the data, that have not been covered in title, captions and stubs.
Sources of data:
Lastly one should also mention the source of information from which data are taken. This may preferably include the name of the author, volume, page and the year of publication. This should also state whether the data contained in the table is of ‘primary or secondary’ nature.
Requirements of a Good Table:
A good statistical table is not merely a careless grouping of columns and rows but should be such that it summarizes the total information in an easily accessible form in minimum possible space. Thus while preparing a table, one must have a clear idea of the information to be presented, the facts to be compared and he points to be stressed.
Though, there is no hard and fast rule for forming a table yet a few general point should be kept in mind:
1. A table should be formed in keeping with the objects of statistical enquiry.
2. A table should be carefully prepared so that it is easily understandable.
3. A table should be formed so as to suit the size of the paper. But such an adjustment should not be at the cost of legibility.
4. If the figures in the table are large, they should be suitably rounded or approximated. The method of approximation and units of measurements too should be specified.
5. Rows and columns in a table should be numbered and certain figures to be stressed may be put in ‘box’ or ‘circle’ or in bold letters.
6. The arrangements of rows and columns should be in a logical and systematic order. This arrangement may be alphabetical, chronological or according to size.
7. The rows and columns are separated by single, double or thick lines to represent various classes and sub-classes used. The corresponding proportions or percentages should be given in adjoining rows and columns to enable comparison. A vertical expansion of the table is generally more convenient than the horizontal one.
8. The averages or totals of different rows should be given at the right of the table and that of columns at the bottom of the table. Totals for every sub-class too should be mentioned.
9. In case it is not possible to accommodate all the information in a single table, it is better to have two or more related tables.
Type of Tables:
Tables can be classified according to their purpose, stage of enquiry, nature of data or number of characteristics used. On the basis of the number of characteristics, tables may be classified as follows:
1.  Simple or one-way table                                   2.  Two way table
3.  Manifold table
1. Simple or one-way Table:
A simple or one-way table is the simplest table which contains data of one characteristic only.  A simple table is easy to construct and simple to follow.  For example, the blank table given below may be used to show the number of adults in different occupations in a locality.
The number of adults in different occupations in a locality   
Occupations
No. Of Adults


Total

    A table, which contains data on two characteristics, is called a two-way table. In such case, therefore, either stub or caption is divided into two co-ordinate parts. In the given table, as an example the caption may be further divided in respect of ‘sex’. This subdivision is shown in two-way table, which now contains two characteristics namely, occupation and sex.
2.  Two-way Table:
The umber of adults in a locality in respect of occupation and sex
Occupation
No. of Adults
Total
Male
Female




Total



    Thus, more and more complex tables can be formed by including other characteristics. For example, we may further classify the caption sub-headings in the above table in respect of “marital status”, “religion” and “socio-economic status” etc. A table, which has more than two characteristics of data is considered as a manifold table. For instance, table shown below shows three characteristics namely occupation, sex and marital status.
3.  Manifold Table:
Occupation
No. of Adults
Total
Male
Female
M
U
Total
M
U
Total








Total



Foot note: M Stands for Married and U stands for unmarried.
Manifold tables, though complex are good in practice as these enable full information to be incorporated and facilitate analysis of all related facts. Still, as a normal practice, not more than four characteristics should be represented in one table to avoid confusion. Other related tables may be formed to show the remaining characteristics

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