BUSINESS STATISTICS

UNIT -1
PRIMARY DATA: Collected and Originates from the investigator himself.
PRIMARY DATA collection method is the best source of information method. It is
always, good for the survey.
Advantages :
1. Basic data
2. Un biased information
3. Original data
4. Data from the primary market/ population
5. Data direct from the population.
Disadvantages.
1. Large volume of data.
2. Huge volume of population.
3. Time consuming
4. Direct and personal intervention has to be there.
5. Raw data.
SECONDARY DATA : Collected or acquired from a different source, which
may to relevant to ones own study.
Advantages
1. It already exists, so it saves time.
2. It is often cheaper than doing primary research.
3. It may allow you access to data you could not otherwise get.
Disadvantages:
1. In some cases, it is very expensive (scanner data, e.g.)
2. You may have less control over how the data was collected.
3. There may be biases in the data that you don't know about.
4. Its answers may not exactly fit your research questions.
It may be obsolete data.
INTERNAL DATA : Information, facts and data available from within a company's or
organizations Information System. Internal data is normally not accessible by
outside parties without the company's or organizations express permission.

POINTS TO B KEPT IN MIND WHILE DESIGNING A QUESTIONNAIRE

1) CLARITY : Qs should be simple and as clear as possible. It is essential, wen
the questionnaire is 2 be filled up by the informant, without any assistance
from the investigator.
2) AVOID CERTAIN QUESTIONS : which
a)
might scare or offend th informant
b)
to allow evasive answers
c)
to be answered in prejudice
3) OBJECTIVITY OF ANSWERS: Qs should result in objective answers.
4) DEFINITENESS OF ANSWERS: Qs should be such that, the answers are
definite.
5) NUMBER OF QUESTIONS : No. of Qs should be consistent with the scope of
investigation.
6) ARRANGEMENT OF QUESTIONS : Qs should follow a logical order so as to
avoid skipping back and forth.
POINTS TO B KEPT IN MIND WHILE USING SECONDARY DATA
1. Type and Purpose of the institute from the statistical data is obtained.
2. Nature of the data themselves. E.g. r they biased or unbiased, sample or
complete data, adequate or inadequate.
3. Are the data accurate
4. Does the data refer to homogeneous condition?

CLASSIFICATION OF DATA
Classification of raw data on the basis of some criteria which serves some purpose in
the intended study. It allows:
a) Eliminates unnecessary details
b) Allows comparisons and drawing of inferences.
TYPES OF TABLES
1. Simple or One-way Tables : Used to represent only 1 characteristics of the
variable
2. Higher Order tables: Used to represent multiple characteristics of the
variable

UNIT 2

OBJECTIVES OF AVERAGING
1) To find out the average performance of a set of values. Or a group, e.g. a
class.
2) To find out the point towards which, the values are leaning.. or concentrated
Advantage
a) Fast and easy to calculate
b) Easy to work with and use in further analysis
Disadvantage
a) Sensitive to extreme values
b) Not suitable for time series type of data
c) Works only when all values are equally important
MEDIAN
The median is the value that divides the distribution exactly into halves - 50% is
below it, and 50% above it. The median may not actually occur in the distribution,
but it is the "balance point" of the distribution.

The main advantage of the median is that it is not affected by outliers as the mean
is and the mode can be. In distributions with a clear skew, such as housing prices or
wages, using the median provides a much better estimate of what the "average" is.
Disadvantage: It does not take into account the spread of results or show
clustering of data
MODE
Advantage
i)

Shows the most popular result for non-numerical data

Disadvantage
i) Does not always give one value, it is not unique
ii) It can only be used on a set of data where one or more values are repeated.
PROPERTIES OF STD. DEVIATION
I)
II)

Standard deviation is only used to measure spread or dispersion around the

mean of a data set.
Standard deviation is never negative.

III)
IV)
V)

Standard deviation is sensitive to outliers. A single outlier can raise the

standard deviation and in turn, distort the picture of spread.
For data with approximately the same mean, the greater the spread, the
greater the standard deviation.
If all values of a data set are the same, the standard deviation is zero
(because each value is equal to the mean).

1)
PRINCIPLE OF STATISTICAL REGULARITY: This theory is based on the
theory of probability. The law of statistical regularity lays down that a moderately
large number of items chosen at random from a large group are almost sure on
the average to process the characteristic of large group.
The principle focuses on two factors:
a)
Sample size should be large: This is because as the size of the sample
increases, it becomes more representative of parent population and shows its
characteristics.
b)
Samples must be drawn randomly: The random sample is the one in which
the elements of the population are drawn in such a way that each combination of
elements has an equal probability of being selected in the sample. The selection
of the sample is based on this principle can reduce the amount of efforts required
in arriving at a conclusion about the characteristic of a large population.

3) PRINCIPLE OF INERTIA OF LARGE NUMBERS: This is a corollary principle

of statistical regularity and plays a significant role in sampling theory. This

principle states that under similar conditions as the sample size get large
enough; the statistical inference is likely to be more accurate and stable. For
instance: If a coin is tossed a large number of times, the relative frequency of
occurrence of head & tail is expected to be equal