C HA P T E R
2 Collection of Data
chapter, you will study the sources of
Studying this chapter should
data and the mode of data collection.
enable you to:
• understand the meaning and The purpose of collection of data is to
purpose of data collection; show evidence for reaching a sound and
• distinguish between primary and clear solution to a problem.
secondary sources; In economics, you often come
• know the mode of collection of data; across a statement like this,
• distinguish between Census and “After many fluctuations the output
Sample Surveys;
of food grains rose to 132 million tonnes
• be familiar with the techniques of
sampling; in 1978-79 from 108 million tonnes in
• know about some important sources 1970-71, but fell to 108 million tonnes
of secondary data. in 1979-80. Production of food grains
then rose continuously to 252 million
tonnes in 2015-16 and touched 272
1. INTRODUCTION
million tonnes in 2016–17.”
In the previous chapter, you have read In this statement, you can observe
about what is economics. You also that the food grains production in
studied about the role and importance different years does not remain the
of statistics in economics. In this same. It varies from year to year and
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10 STATISTICS FOR ECONOMICS
from crop to crop. As these values vary, 2. WHAT ARE THE SOURCES OF DATA?
they are called variable. The variables Statistical data can be obtained from
are generally represented by the letters
two sources. The researcher may
X, Y or Z. Each value of a variable is an
collect the data by conducting an
observation. For example, the food
enquiry. Such data are called Primary
grain production in India varies
between 108 million tonnes in 1970– Data, as they are based on first hand
71 to 272 million tonnes in 2016-17 information. Suppose, you want to
as shown in the following table. The know about the popularity of a filmstar
years are represented by variable X and among school students. For this, you
the production of food grain in India will have to enquire from a large
(in million tonnes) is represented by number of school students, by asking
variable Y. questions from them to collect the
desired information. The data you get,
TABLE 2.1
Production of Food Grain in India
is an example of primary data.
(Million Tonnes)
If the data have been collected and
processed (scrutinised and tabulated)
X Y
by some other agency, they are called
1970–71 108 Secondary Data. They can be obtained
1978–79 132 either from published sources such as
1990–91 176 government reports, documents,
1997–98 194 newspapers, books written by
2001–02 212 economists or from any other source,
2015-16 252
for example, a website. Thus, the data
2016-17 272
are primary to the source that collects
Here, the values of these variables and processes them for the first time
X and Y are the ‘data’, from which we and secondary for all sources that later
can obtain information about the use such data. Use of secondary data
production of food grains in India. To saves time and cost. For example, after
know the fluctuations in food grains collecting the data on the popularity of
production, we need the ‘data’ on the the filmstar among students, you
production of food grains in India for publish a report. If somebody uses the
various years. ‘Data’ is a tool, which data collected by you for a similar
helps in understanding problems by study, it becomes secondary data.
providing information.
You must be wondering where do 3. HOW DO WE COLLECT THE DATA?
‘data’ come from and how do we collect
Do you know how a manufacturer
these? In the following sections we will
decides about a product or how a
discuss the types of data, method and
instruments of data collection and political party decides about a
sources of obtaining data. candidate? They conduct a survey by
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