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Sources of Data
FOCUS
This session covers the following content from the ACCA Study Guide.
Session 2 Guidance
Note that this is a theoretical session dealing with a concept of data—its nature, types, complexity
and source.
Familiarise yourself with the miscellaneous classifications of data (e.g. primary/secondary, discrete/
continuous, etc). Use Example 1 to check your understanding of section 1.
TYPES OF DATA
• Quantitative Data v Qualitative Data
• Discrete Data v Continuous Data
• Primary Data
• Secondary Data
• Raw Data v Aggregated Data
SAMPLING
• Terminology
• Why Sample?
• Stages in Sample Data Collection
SELECTION METHODS
• Random Selection
• Systematic Selection
• Stratified Sample
• Multi-stage Selection
• Non-random
Session 2 Guidance
Understand the different internal and external sources of data (s.2 and s.3), including the type
and nature of data that an entity will be able to collect.
Know why sampling (s.4.1) is required and the steps involved in a sampling process (s.4.2). Use
the Illustrations and Example 2 in section 5 to test your understanding of choosing an appropriate
sampling method.
1 Types of Data
1.1 Quantitative Data v Qualitative Data
Quantitative Data Qualitative Data
Is capable of numerical Reflects distinguishing
measurement (e.g. time, characteristic (e.g. gender,
distance, cost, weight, age). colour, nationality).
Exhibit 1 ACCA
The following are ACCA publications for members including a range of magazines,
factsheets and booklets. Source: http://www2.accaglobal.com/members/publications/
3.7 Internet
The Internet links the computers of organisations, governments and
even individuals to transmit, exchange and/or receive information
quickly and inexpensively. Much of the information which can be
obtained, however, is not approved before it is made public.
Users of information from the Internet should consider, before
using it, whether it is:
accurate (i.e. current, comprehensive and with a stated
purpose);
credible (e.g. authored by a known organisation);
reasonable (i.e. balanced, objective, moderated, internally
consistent); or
supported (e.g. corroborated by other sources).
3.8 Uses of Published Information/Data
Published data is widely used in the exploratory phase of
research. For example, a preliminary analysis of available
data may help:
in understanding market conditions; and
identifying lines of inquiry and/or alternative courses of
action that might be pursued.
Published sources are particularly helpful in defining
populations and in structuring samples to be taken from them.
Information obtained from published sources is used in decision-
making (e.g. setting prices, deciding whether to make or buy a
product or lease or buy an asset), comparing performance (e.g.
with competitors), negotiating pay settlements, etc.
4 Sampling
4.1 Terminology
Population: the group of people/items about which information
is to be collected. This must be clearly defined (e.g. meaning of
"student").
Sample: a group of items drawn from a population for
examination.
Descriptive Statistics: methods of describing large masses of
data. For example, measures of centrality (e.g. arithmetic mean)
and spread (e.g. standard deviation).
Inferential (analytical) Statistics (covered in Session 13):
methods enabling a conclusion to be drawn from data (e.g.
correlation and regression).
Define Problem
• Define population
Design Sample
Draft Questionnaire
• Sample size
• Conduct pilot survey
• Selection method
Report Findings
• Recommend a course of action
5 Selection Methods*
A quality controller wishes to check, for defects, the output of a product which
is manufactured on three machines. Machines A, B and C have outputs of
100, 60 and 40 units an hour, respectively. To obtain a total sample of 60
items, the quality controller takes 30, 18 and 12 items from machines A, B and
C, respectively. This will provide a more accurate estimate of defects in the
population than if 60 items were randomly selected.
5.5 Non-random
*The number of steps
Alternative sample selection methods may be used when random in multi-stage selection
or quasi-random methods are not feasible (e.g. due to constraints will depend on how
of cost or time or the whole population not being known). small the areas are
needed for the purpose
5.5.1 Quota Sampling of the study.
The method of selecting a quota of subjects is widely used in opinion
polling and market research. Interviewers or canvassers are each
given a quota of subjects of specified type (e.g. to select 20 adult
men, 20 adult women, 10 teenage girls and 10 teenage boys).
Solution
Session 2 Quiz
Estimated time: 15 minutes
1. State the major difference between primary and secondary data. (1.3, 1.4)
3. List SIX items of information that may be published in an annual report. (2.3)
Additional
Q4 Public Opinion
EXAMPLE SOLUTIONS
(d) The speed of a car passing a certain point in the road. Quantitative and continuous
Although other methods might be used, these are the most suitable in the absence of further information.