MODULE OF INSTRUCTION

Module 2
Data Gathering and Presentation

Welcome to the second module of Business Statistics!

In conducting research, collection of data is the first step, so you must

pay attention in this part. When these data are already in hand, you
must then select the way you want it to be presented.

After reading this chapter you should be able to

 know the different methods of data collection

 learn how to determine the sample size

 apply the different types of sampling techniques

 organize and present data in appropriate forms

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2.1 Methods of Data Collection

Before the collection process, the method to be used must be first
specified. The following are the various ways of gathering data

2.1.1 Interview Method

In this process, the researcher has a direct contact with the respondent.
The researcher can get more accurate answers or responses since
clarifications can be made. This method is time consuming since you
need a one-on-one correspondence. This includes in-home, mail-
intercept, in-office, telephone and in-depth interview.

Structured Interview – the aim of this approach is to ensure that each

interview is presented with exactly the same questions in the same
order.

Unstructured Interview – the aim of this approach is to ensure detailed

explanation of points.

2.1.2 Observation Method

This is a technique in which a researcher studies the social process as

they happen in the field. The researcher may employ participant or
non-participant observation.

Participant Observation –the researcher is involved in the situation or

activity being studied.

Non-Participant Observation- the researcher is not directly involved in

the activities being observed.

2.1.3 Questionnaire Method

The researcher gives or distributes written survey forms. With this,

one can save a lot of time since he has the ability to send
questionnaires to a large number of respondents at the same time.
However, the researcher cannot expect that all questionnaires will be
sent back.

Self-administered – this may refer to “paper-and-pencil” survey

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Computer-assisted – this is a survey done with the aid of the computer

technology

2.1.4 Registration Method

This is a reliable method of data collection because it is governed by

laws. Birth and death rates are registered at the Philippines Statistics
Authority. The number of registered vehicles can be found at the Land
and Transportation Office. The list of registered voters can be found
at the Commission on Elections.

2.1.5 Experimental Method

This is usually used to find out the cause and effect relationship
existing in a study. One of the experimental studies in business is the
test marketing. This is an experiment conducted in a field comprising
of actual stores and real-life buying situations, without the buyers
knowing they are participating in an evaluation exercise. It simulates
the eventual market-mix to ascertain consumer reaction. Depending on
the quality and quantity of sales data required for the final decision,
test marketing may last from few weeks to several months.

2.2 Sample Size Determination

In research, we seldom use the entire population because of the time
and cost involved. Instead, the samples are used as the representative
of the population. To do this, we must have a proper tool to have the
acceptable sample size.

The most common formula to determine the sample size of a given

population is the Slovin’s formula. There is a presence of margin of
error which expresses the amount of sampling error in a survey.

N
n=
1+Ne2

where n = sample size

N = population size
e = margin of error

To illustrate, a group of researchers wants to find out the opinion of

the people of a town regarding the oil price hike. There were 1,500

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registered individuals with vehicles. With a margin of error of 5%,

what should the sample size be?

Hence, we have N = 1,500, and e = 0.05

Solution
1,500
n = 1+(1,500)(0.05)2

1,500
= 4.75

= 316

316 respondents are needed for the study. However sometimes,

researchers just approximate their desired sample size to be used.

2.3 Sampling Techniques

A sampling technique is the manner by which samples are drawn in a
population. Two major types are the probability and non-probability
sampling. Probability sampling is a type on which every element in
the population has an equal chance of being selected. Non-probability
sampling does not give all the elements the equal chance of being
selected.

2.3.1 Probability Sampling Techniques

Simple Random Sampling - this is the basic form of probability

sampling. This can be done using the lottery method, the table of
random numbers and random number generators.

In the lottery method, supposing the manager of a business entity

wants to send 5 people for training and there are 40 sales employees
having similar performance rating. To avoid bias in selection, each of
the 40 employees is being represented by a piece of paper with names
or number placed inside a bowl. The manager then randomly picks the
five rolled papers from the bowl.

The table of random numbers consist of 5-digit numbers. The process

starts by randomly choosing with a starting point and moving through
the table until one gets the required number of samples.

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Other random generator tools include scientific calculators, random

sampling software, mobile and online applications.

Systematic Sampling – sample units are obtained by drawing every nth

element of a series representing a population.

Let’s use the example wherein 5 employees will be selected from 40

employees on a list. Steps are as follows
1. Determine the nth
nth = (Population)/(Required Number of samples)
= 40/5
=8
So we must select samples every 8th element
2. Determine a starting point through random sampling. You may use
lottery method or other methods which you deem appropriate.
Let’s say that we had picked number 4 as the starting point. So out
first sample is the 4th element.
3. Start counting for the 8th element until you complete the samples
needed.

1 11 21 31
2 12 22 32
3 13 23 33
4 14 24 34
5 15 25 35
6 16 26 36
7 17 27 37
8 18 28 38
9 19 29 39
10 20 30 40

If your population list is numbered, you may simply

Use simple addition to get the next element
In the above example we can get the samples
4
4+8=12
12+8= 20
20+8= 28
28+8=36

However, if your list is unnumbered, you will really need to count one
by one.

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Stratified Random Sampling- this method can be used when the

members of the population do not belong to the same category, class
or group. The researcher divides the population into two or more
strata, groups or categories on the basis of homogeneity then the
members of the sample are drawn proportionally from each group.

Suppose a community consist of 2,000 individuals belonging to

different income brackets. We will draw 300 individuals as our
sample using stratified random sampling. Shown below are the sub-
population and the corresponding number of individuals belonging to
each group

Table 1. Categorized Data

Strata Number of Individuals
High-income Earners 300
Average-income Earners 500
Low-income Earners 1200
N=2,000

Solution: We must first find the percentage of each stratum. Then we

multiply each percentage by the desired number of individuals in the
sample. Table 2 shows how it is being done.

Table 2. Division of Samples per Stratum

Number of Number of
Strata Percentage
Individuals Samples
High-income Earners 300 300/2000 = 0.15 or 15% 0.15x300 = 45
Average-income Earners 500 500/2000 = 0.25 or 25% 0.25x300 = 75
Low-income Earners 1200 1200/2000 = 0.6 or 60% 0.60x300 = 180
N= 2,000 n=300

Cluster Sampling- this can be used when the population is large. This
is a type of sampling wherein clusters or groups are randomly chosen
instead of individuals. Selection of the individual samples is then
taken randomly from the groups that were chosen. This is sometimes
termed as area sampling. Here’s an example to illustrate this sampling
technique. A researcher wants to determine the average income of
families in a certain municipality having 100 barangays. We may
draw a random sample of 20 barangays using simple random
sampling, and then a certain number of families from each barangay
may be chosen.

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Multi-Stage Sampling- this method is a combination of several

sampling techniques that were discussed earlier. This method is
usually used in studying a very large population. For instance, a
researcher wants to collect samples from the whole Philippines. He
can start by using cluster sampling per province then dividing each
cluster into strata. Then individual samples are randomly selected from
those strata.

2.3.2 Non-Probability Sampling Techniques

Accidental Sampling- there is no system of selection. Samples chosen

are only those whom the researcher meets by chance. A typical
example is a survey taken from people passing by the streets or in the
malls.

Convenience Sampling- this is a process of picking out respondents in

the most convenient and fastest way. For instance if you would like to
survey on the reaction of people regarding the lowering of income tax,
you may simply gather samples through the telephone. Although
convenience sampling may be used occasionally, we cannot depend on
it in making inferences about the population because it only considered
those people who have telephones.

Quota Sampling – the proportions of various subgroups in the

population are determined and the desired samples are drawn from the
subgroups. This is similar to stratified sampling since there are groups
involved.

Purposive Sampling – the respondents are chosen on the basis of their

knowledge of information needed. Chosen respondents are those who
satisfied the criteria laid down by the researcher.

Snow-ball Sampling – this is used when the researcher does not have
the data regarding the population. This involves asking subjects to
provide names of others who may meet the study criteria.

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2.4 Presentation of Data

Things obtained through surveys and experiments are considered as
raw data. These things will be of no use, unless they are organized
systematically. Organized data for meaningful interpretation can be
presented in a textual, tabular or graphical form.

2.4.1 Textual Method

In the textual form, the presentation is in narrative form. The data are
already organized inside a paragraph. This data presentation does not
attract the interest of mostly all who sees. But the advantage of this
type of presentation is that it can give a more comprehensive approach
because of its further explanations.

Here’s an example. According to the computations of the cashier, the

income of a restaurant within a certain week is worth Php 88,000.
From Monday to Friday income was stable at Php15,000 per day.
Because there are no office work during weekends, income in
Saturday and Sunday went down to Php 8,000.00 and Php5,000.00
respectively.

2.4.2 Tabular Method

This method makes use of columns and rows. The most important
advantage of tabulation is that it organizes data for further statistical
treatment and decision making. Tabulation can be classified into four
kinds namely the qualitative, quantitative, temporal and spatial.

Qualitative Classification – is when classification is done according to

the qualitative characteristics such as civil status, gender and
nationality

Table 1. Distributuion of Respondents by Gender

Number of
Gender Respondents
Male 16
Female 34
N=50

Quantitative Classification – the data are classified on the basis of

characteristics which are quantitative in nature. In other words, these
characteristics are measurable such as age, height and income.

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Table 2. Age Group of Respondents (N=50)

Number of
Age Group Respondents
20-35 25
36-50 17
51-65 8
N=50

Temporal Classification-the data are classified according to time. This

may be in hours, days, weeks, months and years.

Table 3. Income of a Restaurant in a Week

Day Income
Monday Php 15,000.00
Tuesday 15,000.00
Wednesday 15,000.00
Thursday 15,000.00
Friday 15,000.00
Saturday 8,000.00
Sunday 5,000.00
TOTAL Php 88,000.00

Spatial Classification – the data are classified according to place. This

includes town, district, state and country.

Table 4. Corporate Income Tax Rate of ASEAN Countries as of 2016

Corporate Income
Country Tax Rate
Philippines 30%
Thailand 20%
Vietnam 22%
Indonesia 25%
Malaysia 25%
Singapore 17%

2.4.3 Graphical Method

A graphical representation is a visual display of data and statistical

results. It is considered as the most effective way of presenting data in
because important relationships are brought out more clearly and
creatively.

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Line Graph – this is used to display data that changes over time. In
this graph, data are presented by points and are joined by line
segments. Generally, the horizontal axis is labelled as the time
component while the vertical axis is used to show the changes other
quantity.

Income of Company A from 2011-2015

INCOME (PHP) 6,000,000.00

5,000,000.00
4,000,000.00
3,000,000.00
2,000,000.00
1,000,000.00
0.00
2011 2012 2013 2014 2015
YEAR
Figure 1. Line Graph

Bar Graph- this is a graph that uses horizontal or vertical bars to

represent data. Bars provide a visual display for comparing quantities
in different categories or groups.

Income of Companies A,B,C,D & E Income

6,000,000.00
INCOME (PHP)

5,000,000.00
4,000,000.00
3,000,000.00
2,000,000.00
1,000,000.00
0.00
A B C D E

COMPANIES

Figure 2. Bar Graph

Pie Chart – this is used to show all parts related to a whole. It is

represented by a circle divided at various sizes, where each part
represents a percentage. This is also known as circle graph.

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Composition of Cash and Cash Equivalents

Marketable
Securities
21%

Money Market Currencies and

Funds Coins
10% 53%

Treasury Bills
16%

Figure 3. Pie Chart

Map Graph- a map is drawn and divided into desired regions. Each
region may be distinguished from other regions by shading with
different colors or other symbols.

Figure 4. Map Graph

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Pictograph – In this type of chart, pictures are used to represent

values.

Number of Books Sold from 2011-2015

= 1,000 books

2011
2012
2013
2014
2015

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Glossary
Graphical method - a visual display of data and statistical results

Non-probability sampling – selection of samples is based on the

judgement of the researcher

Probability sampling – a sampling technique wherein each member of

the population has an equal chance of being selected

Sampling technique - the manner by which samples are drawn in a

population

Tabular method – a presentation that makes use of columns and rows

Textual method – a narrative form of presentation

References
Acelajado, M.J., Belecina, R.R. and Blay, B.E. (1999). Mathematics
for the new millennium. Makati City: Diwa Learning Systems Inc.

Bery, G. C. (2005). Business Statistics, 2nd Edition. New York:

McGraw-Hill Publishing Company Limited.

Encarta. (2006). Statistics. Microsoft Corporation.

Isotalo, J. (2001). Basics of Statistics. Finland: University of

Tampere.

Lim, J.D. (2010). History and development of statistics. Bulacan:

Project Dennio.

Salvan, E. (2011). Business statistics. Antique: SAC Inc.

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