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Question 1. What is Survey Research? How it different from

Observation Research?
Answer: The dictionary meaning of ‘Survey’ is to oversee, to look over, to study, to systematically
investigate. Survey research is used to study large and small populations (or universes). It is a fact
finding survey. Mostly empirical problems are investigated by this approach. It is a critical inspection
to gather information, often a study of an area with respect to a certain condition or its prevalence.
For example: a marketing survey, a household survey, All India Rural Credit Survey.

Survey is a very popular branch of social science research. Survey research has developed as a
separate research activity alongwith the development and improvement of sampling procedures.
Sample surveys are very popular now a days. As a matter of fact sample survey has become
synonymous with survey. For example, see the following definitions: Survey research can be defined
as “Specification of procedures for gathering information about a large number of people by
collecting information from a few of them”. (Black and Champion). Survey research is “Studying
samples chosen from populations to discover the relative incidence, distribution, and inter relations
of sociological and psychological variables”. (Fred N. Kerlinger)

By surveying data, information may be collected by observation, or personal interview, or mailed

questionnaires, or administering schedules or telephone enquiries.

Features of Survey method

The important features of survey method are as follows:

i) It is a field study, as it is always conducted in a natural setting.

ii) It solicits responses directly from the respondents or people known to have knowledge about
the problem under study.
iii) Generally, it gathers information from a large population.
iv) A survey covers a definite geographical area eg. A village / city or a district.
v) It has a time frame.
vi) It can be an extensive survey involving a wider sample or it can be an intensive study covering
few samples but is an in-depth and detailed study.
vii) Survey research is best adapted for obtaining personal, socio-economic facts, beliefs, attitudes,
opinions.

Survey research is not a clerical routine of gathering facts and figures. It requires a good deal of
research knowledge and sophistication. The competent survey investigator must know sampling
procedures, questionnaire / schedule / opionionaire construction, techniques of interviewing and
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other technical aspects of the survey. Ultimately the quality of the Survey results depends on the
imaginative planning, representative sampling, reliability of data, appropriate analysis and
interpretation of the data.

Observation Method

Observation means seeing or viewing. It is not a casual but systematic viewing. Observation may
therefore be defined as “a systematic viewing of a specific phenomenon in its proper setting for the
purpose of gathering information for the specific study”.

Observation is a method of scientific enquiry. We observe a person or an event or a situation or an

incident. The body of knowledge of various sciences such as biology, physiology, astronomy,
sociology, psychology, anthropology etc., has been built upon centuries of systematic observation.

Observation is also useful in social and business sciences for gathering information and
conceptualizing the same. For example, What is the life style of tribals? How are the marketing
activities taking place in Regulated markets?

How will the investment activities be done in Stock Exchange Markets? How are proceedings taking
place in the Indian Parliament or Assemblies? How is a corporate office maintained in a public sector
or a private sector undertaking? What is the behaviour of political leaders? Traffic jams in Delhi
during peak hours?

Features of Observation method

Observation as a method of data collection has some features:

i) It is not only seeing & viewing but also hearing and perceiving as well.
ii) It is both a physical and a mental activity. The observing eye catches many things which are
sighted, but attention is also focused on data that are relevant to the problem under study.
iii) It captures the natural social context in which the person’s behaviour occurs.
iv) Observation is selective: The investigator does not observe everything but selects the range of
things to be observed depending upon the nature, scope and objectives of the study.
v) Observation is not casual but with a purpose. It is made for the purpose of noting things relevant
to the study.
vi) The investigator first of all observes the phenomenon and then gathers and accumulates data.

Observation may be classified in different ways. According to the setting it can be (a) observation in
a natural setting, eg. Observing the live telecast of parliament proceedings or watching from the
visitors gallery, Electioneering in India through election meetings or (b) observation in an artificially

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stimulated setting, eg. business games, Tread Mill Test. According to the mode of observation it may
be classified as (a) direct or personal observation, and (b) indirect or mechanical observation. In
case of direct observation, the investigator personally observes the event when it takes place, where
as in case of indirect observation it is done through mechanical devices such as audio recordings,
audio visual aids, still photography, picturization etc. According to the participating role of the
observer, it can be classified as (a) participant observation and (b) non-participant observation. In
case of participant observation, the investigator takes part in the activity, i.e. he acts both as an
observer as well as a participant. For example, studying the customs and life style of tribals by living
/ staying with them. In case of non-participant observation, the investigator observes from outside,
merely as an on looker.

Observation method is suitable for a variety of research purposes such as a study of human
behaviours, behaviour of social groups, life styles, customs and traditions, inter personal relations,
group dynamics, crowd behaviour, leadership and management styles, dressing habits of different
social groups in different seasons, behaviour of living creatures like birds, animals, lay out of a
departmental stores, a factory or a residential locality, or conduct of an event like a meeting or a
conference or Afro- Asian Games.

Question 2. What do you mean by editing of data? Explain the

guidelines to be kept in mind while editing the statistical data.
Answer: Editing is the first stage in data processing. Editing may be broadly defined to be a
procedure, which uses available information and assumptions to substitute inconsistent values in a
data set. In other words, editing is the process of examining the data collected through various
methods to detect errors and omissions and correct them for further analysis. While editing, care has
to be taken to see that the data are as accurate and complete as possible, units of observations and
number of decimal places are the same for the same variable.

The following practical guidelines may be handy while editing the data:

1) The editor should have a copy of the instructions given to the interviewers.
2) The editor should not destroy or erase the original entry. Original entry should be crossed out in
such a manner that they are still legible.
3) All answers, which are modified or filled in afresh by the editor, have to be indicated.
4) All completed schedules should have the signature of the editor and the date.

For checking the quality of data collected, it is advisable to take a small sample of the questionnaire
and examine them thoroughly. This helps in understanding the following types of problems:

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(1) Whether all the questions are answered,

(2) Whether the answers are properly recorded,
(3) Whether there is any bias,
(4) Whether there is any interviewer dishonesty,
(5) Whether there are inconsistencies.

At times, it may be worthwhile to group the same set of questionnaires according to the investigators
(whether any particular investigator has specific problems) or according to geographical regions
(whether any particular region has specific problems) or according to the sex or background of the
investigators, and corrective actions may be taken if any problem is observed.

Before tabulation of data it may be good to prepare an operation manual to decide the process for
identifying inconsistencies and errors and also the methods to edit and correct them. The following
broad rules may be helpful.

Incorrect answers: It is quite common to get incorrect answers to many of the questions. A person
with a thorough knowledge will be able to notice them. For example, against the question “Which
brand of biscuits do you purchase?” the answer may be “We purchase biscuits from ABC Stores”.
Now, this questionnaire can be corrected if ABC Stores stocks only one type of biscuits, otherwise
not. Answer to the question “How many days did you go for shopping in the last week?” would be a
number between 0 and 7. A number beyond this range indicates a mistake, and such a mistake
cannot be corrected.

The general rule is that changes may be made if one is absolutely sure, otherwise this question
should not be used. Usually a schedule has a number of questions and although answers to a few
questions are incorrect, it is advisable to use the other correct information from the schedule rather
than discarding the schedule entirely.

Inconsistent answers: When there are inconsistencies in the answers or when there are incomplete
or missing answers, the questionnaire should not be used. Suppose that in a survey, per capita
expenditure on various items are reported as follows: Food – Rs. 700, Clothing – Rs.300, Fuel and
Light – Rs. 200, other items – Rs. 550 and Total – Rs. 1600. The answers are obviously inconsistent
as the total of individual items of expenditure is exceeding the total expenditure.

Modified answers: Sometimes it may be necessary to modify or qualify the answers. They have to
be indicated for reference and checking. Numerical answers to be converted to same units: Against
the question “What is the plinth area of your house?” answers could be either in square feet or in
square metres. It will be convenient to convert all the answers to these questions in the same unit,
square metre for example.

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Question 3. Briefly comment on the following:

(a) Visual presentation of statistical data has become more
popular
Answer: Visual presentation of statistical data has become more popular and is often used by the
researcher and the statistician in analysis. Visual presentation of data means presentation of
Statistical data in the form of diagrams and graphs. In these days, as we know, every research work
is supported with visual presentation because of the following reasons.

1. They relieve the dullness of the numerical data: Any list of figures becomes less
comprehensible and difficult to draw conclusions from as its length increases. Scanning of the
figures from tables causes undue strain on the mind. The data when presented in the form of
diagrams and graphs, gives a birds eye-view of the entire data and creates interest and leaves
an impression on the mind of readers for a long period.
2. They make comparison easy: This is one of the prime objectives of visual presentation of data.
Diagrams and graphs make quick comparison between two or more sets of data simpler, and
the direction of curves bring out hidden facts and associations of the statistical data.
3. They save time and effort: The characteristics of statistical data, through tables, can be
grasped only after a great strain on the mind. Diagrams and graphs reduce the strain and save
a lot of time in understanding the basic characteristics of the data.
4. They facilitate the location of various statistical measures and establish trends: Graph
makes it possible to locate several measures of central tendency such as Median, Quartiles,
Mode etc. They help in establishing trends of the past performance and are useful in interpolation
or extrapolation, line of best fit, establishing correlation etc. Thus, it helps in forecasting.
5. They have universal applicability: It is a universal practice to present the numerical data in
the form of diagrams and graphs. In these days, it is an extensively used technique in the field
of economics, business, education, health, agriculture etc.
6. They have become an integral part of research: In fact, now a days it is difficult to find any
research work without visual support. The reason is that this is the most convincing and
appealing way of presenting the data. You can find diagrammatic and graphic presentation of
data in journals, magazines, television, reports, advertisements etc. After having understood
about the importance of visual presentation, we shall move on to discuss about the Diagrams
and graphs which are more frequently used in the area of business research

Question 3. Briefly comment on the following:

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(b) Decision makers use index numbers as part of

intermediate computations.
Answer: Decision makers use index numbers as part of intermediate computations to understand
other information better. Nominal income can be transformed into real income. Similarly, nominal
sales into real sales & so on …, through an appropriate index number. Consumer price index, also
known as cost of living index, is arrived at for a specified group of consumers in respect of prices of
specific commodities and services which they usually purchase. This index serves as an indicator of
‘real’ wages (or income) of the consumers. For example, an individual earns Rs. 100/- in the year
1970 and his earnings increase to Rs. 300/- in the year 1980. If during this period, consumer price
index increases from 100 to 400 then the consumer is not able to purchase the same quantity of
different commodities with Rs. 300/-, which he was able to purchase in the year 1970 with his income
of Rs. 100/-. This means the real income has declined. Thus real income can be calculated by dviding
the actual income by dividing the consumer price index:

Real income in 1980 = Actual income in 1980 ÷ Consumer price index of 1980

= 300 / 400 = Rs. 75/− with respect to 1970 as base year.

Therefore, the consumer’s real income in the year 1980 is Rs. 75/- as compared to his income of
Rs. 100/- in the year 1970. We can also say that because of price increase, even though his income
has increased, his purchasing power has decreased.

Question 3. Briefly comment on the following:

(c) While testing a hypothesis one is likely to commit two type
errors.
Answer: While testing Hypothesis we are liable to commit two types of errors. In the first case, it
may be that Hypothesis is true but x falls on ω and as such, we reject Hypothesis. This is known as
type-I error or error of the first kind. Thus type-I error is committed in rejecting a null hypothesis which
is, in fact, true. Secondly, it may be that Hypothesis is false but x falls on A and hence we accept
Hypothesis. This is known as type-II error or error of the second kind. So type-II error may be
described as the error committed in accepting a null hypothesis which is, in fact, false. The two kinds
of errors are shown in following Table

Statistical Decision based on sample

Real Situation
Hypothesis accepted Hypothesis Rejected
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Hypothesis True Right Decision Type I Error

Hypothesis False Type II Error Right Decision

It is obvious that we should take into account both types of errors and must try to reduce them.Since
committing these two types of errors may be regarded as random events, we may modify our earlier
statement and suggest that an appropriate test of hypothesis should aim at reducing the probabilities
of both types of errors.

Surely, our objective would be to reduce both type-I and type-II errors. But since we have taken
recourse to sampling, it is not possible to reduce both types of errors simultaneously for a fixed
sample size.

Question 3. Briefly comment on the following:

(d) Data collection through a sample method is one of the
issues
Answer: There are three major issues which may be faced in the construction of index numbers.
Data collection through a sample method is one of the issues in the construction of index numbers.
The data has to be as reliable, adequate, accurate, comparable, and representative, as possible.
Here a large number of questions need to be answered. The answers ultimately depend on the
purpose and individual judgement. For example, one needs to decide the following:

i) Identification of Commodities to be Included: How many and which category of commodities

to include? A large number of items may be present. It is not possible to include all of them, only
those items deserve to be included in the construction of an index number as would make it more
representative. It is worthwhile to note that the selection of items must be deliberate and in keeping
with the relevance and significance of each individual item to the purpose for which the index is
constructed.

ii) Sources of Data: From where to collect data? It is an important and difficult issue. The source
depends on the information requirement. For example, one may need to collect prices and quantities
consumed related to certain commodities for a consumer price index. However, there may be a large
number of retailers and wholesalers, selling the commodities, and quoting different prices. To get
the details, only a few representative shops (which represent the typical purchasing points of the
people under question) need to be selected. Thus, based on a representative sample survey,
sources should be from where accurate, adequate, and timely data can be available.

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iii) Timings of Data Collection: It is also equally important to collect the data at an appropriate time.
Referring to the example of consumer price index, prices are likely to vary on different days of the
month. For certain commodities prices may vary at different times of the same day. For each
commodity, individual judgement needs to be exercised to represent reality and to serve the purpose
for which an index is to be used.

Question 4. Write short notes on the following:

(a) One dimensional bar diagrams
Answer: Bar refers to a thick line. Under this type of construction only one dimension i.e., length is
taken into account for the purpose of comparison and observance of fluctuations in growth. The
length of each bar is proportionate to the magnitude of the data. The width is not related to the
magnitude of the data. Generally the width is given for the purpose of visual effect and attractiveness.
The width of each bar and the gap between one bar to another bar must be uniform. Mention the
respective figures at the top of every bar, particularly when the scale is too narrow, so that the reader
knows the figures without consulting the scale of the diagram.

A large number of one dimensional diagrams are available for presenting data. Such as line diagram,
simple bar diagram, multiple bar diagram, sub-divided bar diagram, percentage bar diagram,
deviation bar diagram etc. In a Simple bar diagram, the data related to one variable is depicted. Such
as, profits, investments, exports, sales, production etc. The technique of preparing Multiple bar
diagram is the same as that of simple bar diagram. Multiple bar diagram, on the one hand, facilitates
comparison of the values of different variables in a set and on the other, it facilitates the comparison
of the values of the same variable over a period of time or phenomenon. Sub-divided bar diagram
shows the total of the variables as well as the total of its various components in a single bar.

Question 4. Write short notes on the following:

(b) Graphic presentation
Answer: Another important technique of visual presentations of statistical data is graphic
presentation. One might have seen the graphic representation of stock index, cricket score,
production trends etc., in various magazines and on television. Everybody, irrespective of whether
he/she is a layman or an expert, has a natural fascination for appropriate graphical presentation of
data which remains an essential part of research methodology. The graphic presentation of data
leaves an impact on the mind of readers, as a result of which it is easier to draw trends from the
statistical data.

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The shape of a graph offers easy and appropriate answers to several questions, such as:

➢ The direction of curves on the graph makes it very easy to draw comparisons.
➢ The presentation of time series data on a graph makes it possible to interpolate or
extrapotrate the values, which helps in forecasting.
➢ The graph of frequency distribution helps us to determine the values of Mode, Median,
Quartiles, percentiles, etc.
➢ The shape of the graph helps in demonstrating the degree of inequality and direction of
correlation

For all such advantages it is necessary for a researcher to have an understanding of different types
of graphic presentation of data. In practice, there are a variety of graphs which can be used to depict
the data. However, here we will discuss only a few graphs which are more frequently used in
business research. Broadly, the graphs of statistical data may be classified into two types, one is
graphs of time series, another is graphs of frequency distribution.

Parts of a Graph

The foremost requirement for a researcher is to be aware of the basic principles for using the graph
paper for presentation of statistical data graphically. Conventionally, graphs are drawn on a graph
paper. Two perpendiculars are drawn which intersect each other at right angles. This intersecting
point is called the origin point or the ‘zero’ point. The horizontal line is known as ‘X’ axis (ordinate)
on which independent variables are shown while the vertical line is known as ‘Y’ axis (abscissa) on
which dependent variables are shown. The graph paper is thus divided into four parts, termed as
“quadrants”. These quadrants are meant to depict the positive values and negative values of X
variable and Y variable. By observing the following Chart we will understand clearly about the
purpose of quadrants of a graph.

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Chart: Parts of Graph

Question 4. Write short notes on the following:

(c) False Base line
Answer: Short Note on False Base Line

One of the fundamental rules while constructing graphs is that the scale on the Y-axis should begin
from zero. Where the lowest value to be plotted on the Y scale is relatively high and a detailed scale
is required to bring out he variations in all the data, starting the Y scale with zero introduces
difficulties. For example, if we have a series of production figures over a number of years ranging
from 15000 units to 25000 units, then starting with a zero origin would have one of two undesirable
consequences: either (i) the necessarily large intervals (say 5000 units) on the Y scale would make
us lose sight of the extent of fluctuations in the curve : (ii) a necessarily large graph to permit small
intervals (say 1000 units) would entail a waste of a large part of the graph, in addition to poor visual
communication.

The solution is to break the Y scale : If the zero origin is the shown then the scale is broken by
drawing a horizontal wavy line (also called kinked or zig-zag line) or a vertical wavy line between
zero and the first unit on the Y scale which in our illustration would be 15000 units. The following
diagrams would clarify the point:

The X-axis can also be broken in a similar manner as shown by the following diagram:

These lines are drawn to make the reader aware of the fact that false base has been used. Three
important objects of false base line are:

1. Variations in the data are clearly shown

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2. A large part of the graph is not wasted or space is saved by using false base.
3. The graph provides a better visual communication.

Question 4. Write short notes on the following:

(d) Histogram
Answer: Short Note on Histogram

The graph usually drawn to represent a frequency distribution is called a Histogram. A histogram is
a set of rectangles (vertical bars) each proportionate in width to the magnitude of a class interval and
proportionate in area to the number of frequencies concerning the classes’ intervals. In a histogram,
the variables (class-intervals) are always shown on X-axis and the frequencies are taken on the Y-
axis. In constructing a histogram there should not be any gap between two successive rectangles,
and the data must be in exclusive form of classes. However, we cannot construct histogram for
distribution with open-end classes and it can be quite misleading if the distribution has unequal class
intervals.

The value of mode can be determined from the histogram. The procedure for locating the mode is
to draw a straight line from the top right corner of the highest rectangle (Modal Class) to the top right
corner of the preceding rectangle (Pre Modal Class). Similarly, draw a straight line from the top left
corner of the highest rectangle to top left corner of the succeeding rectangle (Post Modal Class).
Draw a perpendicular from the point of intersection of these two straight lines to X-axis. The point
where it meets the X-axis gives the value of mode.

Question 5. Distinguish between the following:

(a) Primary Data and Secondary Data
Answer: The Primary data are original data which are collected for the first time for a specific
purpose. Such data are published by authorities who themselves are responsible for their collection.
The Secondary data on the other hand, are those which have already been collected by some other
agency and which have already been processed. Secondary data may be available in the form of
published or unpublished sources. For instance, population census data collected by the
Government in a country is primary data for that Government. But the same data becomes secondary
for those researchers who use it later. In case you have decided to collect primary data for your
investigation, you have to identify the sources from where you can collect that data. For example, if
you wish to study the problems of the workers of XYZ Company Ltd., then the workers who are
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working in that company are the source. On the other hand, if you have decided to use secondary
data, you have to identify the secondary source who have already collected the related data for their
study purpose.

With the above discussion, we can understand that the difference between primary and secondary
data is only in terms of degree. That is that the data which is primary in the hands of one becomes
secondary in the hands of another.

Question 5. Distinguish between the following:

(b) Parametric and non parametric test
Answer: In the literal meaning of the terms, a parametric statistical test is one that makes
assumptions about the parameters (defining properties) of the population distribution(s) from which
one's data are drawn, while a non-parametric test is one that makes no such assumptions. In this
strict sense, "non-parametric" is essentially a null category, since virtually all statistical tests assume
one thing or another about the properties of the source population(s).

Parametric tests can provide trustworthy results with distributions that are skewed and non-normal
and also provide trustworthy results when the groups have different amounts of variability.
Parametric tests have greater statistical power. While on the other hand Nonparametric tests assess
the median which can be better for some study areas. Nonparametric tests are valid when our
sample size is small and your data are potentially nonnormal. Nonparametric tests can analyze
ordinal data, ranked data, and outliers

Many people believe that the decision between using parametric or nonparametric tests depends on
whether your data are normally distributed. If you have a small dataset, the distribution can be a
deciding factor. However, in many cases, this issue is not the critical issue because of the following:

• Parametric analyses can analyze nonnormal distributions for many datasets.

• Nonparametric analyses have other firm assumptions that can be harder to meet.

The answer is often contingent upon whether the mean or median is a better measure of central
tendency for the distribution of your data.

• If the mean is a better measure and you have a sufficiently large sample size, a parametric
test usually is the better, more powerful choice.
• If the median is a better measure, consider a nonparametric test regardless of your sample
size.

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. For practical purposes, you can think of "parametric" as referring to tests, such as t-tests and the
analysis of variance, that assume the underlying source population(s) to be normally distributed; they
generally also assume that one's measures derive from an equal-interval scale. And you can think
of "non-parametric" as referring to tests that do not make on these particular assumptions.

Question 5. Distinguish between the following:

(c) Close ended questions and open ended question
Answer: Following points list out differences between Close ended questions and open
ended question

1. Open-ended questions are questions that have unlimited response options while Close-
ended questions are questions that have limited response options.
2. Open-ended questions allow the individual providing the response to answer however he
chooses while close-ended questions lend themselves to “yes” or “no” responses.
3. Close-ended questions are more specific, while open-ended ones are much more “open.”
4. an open-ended question is a question that does not expect a specific, narrow answer while a
close-ended question is a question that expects a specific answer and does not give leeway
outside of that answer.
5. Open-ended questions are best used when you are trying to learn about a particular subject
while Close-ended questions are best used when you want a short, direct answer to a very
specific question.
6. Open ended questions are best when engaging in a meaningful conversation however close
ended questions are less personal in nature and are best used when the person asking wants
a quick answer.

Question 5. Distinguish between the following:

(d) Bar and pie-chart
Answer: A bar chart, or bar graph, is a very common two-dimensional data visualization made up
of rectangular bars, each corresponding to a category and whose length represents the value of that
category. The bars can be either vertical (sometimes called a column graph) or horizontal.

A pie chart is also a very common two-dimensional data visualization where categories and their
values are represented. But in this case the values are proportions of a total and they are visualized
as slices of a circle (a pie)

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In the world of data visualizations, pie charts get a lot of hate. The primary goal of data visualizations
is to clearly and concisely communicate information. The main criticism against pie charts is that it
is very difficult for the human eye to estimate the magnitude of angles, thus making visualization not
very clear. To compensate, pie charts require more labels to get the measurements across, making
them not very concise. In short, often they defeat the main purpose of a data visualization.

A great number of chart users hold the view that bar charts are much more flexible than pie charts,
because they can chart multiple categories during multiple periods. It's an ideal choice to use bar
charts if you need to make comparisons of subjects during the same period, especially when there
is a big gap between values of the segments. However, on a pie chart, instead of concrete values,
what you can see are percentages that a subject takes up of the whole. The pie stands for the overall
100%. Pie charts are not as prevalent as bar charts, because they can't display concrete data of
each segment such as values directly at a glance. Besides, readers can make comparisons of
arbitrary data segments quickly on a bar chart, but are not able to compare two slices that are not
neighbors at once.

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AGGARWAL ACADEMY (F-83, Vishnu Garden) | 7531933003
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For Classes Contact:
AGGARWAL ACADEMY (F-83, Vishnu Garden) | 7531933003