Chapter 9 Use of Statistical Tools

1. Introduction

Having learned various statistical tools for data collection, organization, and analysis, this final chapter focuses on their practical application. The purpose is to understand how these tools come together in a real-world context by developing a research project.

In economics, we often need to investigate issues like the market performance of a product, consumer awareness, or the impact of a new policy. Conducting a survey and preparing a project report is a structured way to gather and analyze information, which can then be used to make informed decisions or suggest improvements. This chapter provides a step-by-step guide to designing and executing a statistical project.

Steps Towards Making a Project

Developing a successful project involves a sequence of well-planned steps, from defining the problem to drawing conclusions.

Identifying a Problem or an Area of Study

The first and most crucial step is to clearly define the objective of your study. What is it that you want to investigate? The topic could be anything from the sales performance of a consumer product (like a car or a mobile phone) to a social issue (like the availability of safe drinking water or the level of consumer awareness in a locality). A clear objective will guide all subsequent steps.

Choice of Target Group

Once the objective is clear, you must identify the target group or population for your study. This is the specific group of people from whom you will collect information. The choice of the target group depends entirely on the problem. For instance:

• A study on luxury cars would target middle and higher-income groups.
• A study on a mass-consumption product like soap would target all rural and urban consumers.
• A study on female literacy would target households to gather information about their female members.

Defining the target group is essential for designing an appropriate questionnaire and choosing the right data collection strategy.

Collection of Data

Based on your objective and available resources (time, money, manpower), you must decide on the method of data collection.

• Primary Data: This involves collecting first-hand information directly from the target group. The most common tool is a questionnaire or an interview schedule, which can be administered through personal interviews, mail, telephone, or email.
• Secondary Data: This involves using data that has already been collected by other agencies (e.g., government reports, research papers). This method is useful when time and resources are limited, but you must ensure the data is suitable for your study.

If you use sampling to select a part of the target group, you must choose a suitable sampling method (like random sampling) to ensure the sample is representative.

Organisation and Presentation of Data

The raw data you collect needs to be processed to be useful. This involves organizing the data and presenting it in a clear and comprehensible format, such as tables, bar diagrams, pie charts, or histograms, as discussed in Chapters 3 and 4.

Analysis and Interpretation

This is the core of the project. Here, you apply the statistical tools you have learned to analyze the organized data. This includes:

• Measures of Central Tendency (Chapter 5): Calculating the mean, median, or mode to find the average or typical value (e.g., average monthly expenditure).
• Measures of Dispersion (Chapter 6): Calculating the standard deviation or range to understand the variability in the data (e.g., the spread of incomes).
• Correlation (Chapter 7): Calculating the correlation coefficient to examine the relationship between two variables (e.g., the relationship between income and expenditure).

Conclusion

The final step is to draw meaningful conclusions based on your analysis. The conclusion should summarize your findings and directly address the initial objective of the project. You can also offer suggestions, recommendations, or predict future trends based on your results.

Bibliography

It is essential to acknowledge all the sources you have used, especially secondary data. This section should list the details of all books, reports, newspapers, and websites that you referred to while developing your project.

Recap

• The first step of a project is to clearly identify the objective of the study.
• The population and sample must be chosen carefully based on the objective.
• The type of data to be used (primary or secondary) is determined by the survey's goals.
• A questionnaire or interview schedule is prepared to collect primary data.
• Collected data is then analyzed using various statistical tools (central tendency, dispersion, correlation).
• Finally, the results are interpreted to draw meaningful conclusions.

2. Suggested List of Projects

This section provides a list of potential project topics to help students apply their statistical knowledge to real-world economic issues. Students can choose from these or select another topic of interest. Some suggested topics include:

• Preparing a report on improving the transportation system.
• Creating a project proposal for a bank loan to start a cottage industry.
• Assessing the impact of advertisements on the sale of a consumer product.
• Studying literacy levels and school dropout rates in a district.
• Investigating complaints of overcharging (above MRP) by local traders.
• Developing a plan to improve safe drinking water facilities in a village.
• Analyzing women's participation in employment schemes.
• Studying the saving habits of people in relation to their income.
• Investigating food adulteration or the effectiveness of a public health program like Polio immunization.

3. Sample Project

This section provides a detailed example of a project to guide students. The structure and methods can be adapted based on the specific topic chosen.

Project: To advise an entrepreneur on setting up a new toothpaste factory by studying consumer behavior.

Example Of Questionnaire To Be Used For This Project Report

A well-structured questionnaire is designed to gather primary data on key aspects like demographics, expenditure, brand preferences, and media influence.

1. Name: ______________________
2. Sex: ______________________
3. Ages of family members (in years): ______________________
4. Total Number of family members: ______________________
5. Monthly family income: $\textsf{₹}$______________________
6. Location of residence: Urban / Rural
7. Major occupation of the main bread-winner:
   • (i) Service
   • (ii) Professional
   • (iii) Manufacturer
   • (iv) Trader
   • (v) Any other (please specify)
8. Does your family use toothpaste to clean your teeth? Yes / No
9. If Yes, what are the essential qualities of a good toothpaste? (Tick more than one):
   • (i) Plain
   • (ii) Gel
   • (iii) Antiseptic
   • (iv) Flavoured
   • (v) Caries Protection
10. Which brand of toothpaste do you use? ______________________
11. How many 100-gram packs of this toothpaste do you use per month? ______________________
12. Are you satisfied with this toothpaste? Yes / No
13. Are you prepared to try out a new toothpaste? Yes / No
14. If Yes, what features would you like in the new toothpaste? (Tick more than one):
    • (i) Plain
    • (ii) Gel
    • (iii) Antiseptic
    • (iv) Flavoured
15. What are the main sources of your information about toothpaste?
    • (i) Television
    • (ii) Newspapers
    • (iii) Magazines
    • (iv) Cinema
    • (v) Internet

Example Of Simplified Project Report

After collecting data from a hypothetical sample of 100 households, the information is organized, analyzed, and presented as follows:

(i) Age distribution of family members:

Observation: The majority of the surveyed individuals were in the 20–50 years age group.

(ii) Family Size:

Observation: Most of the surveyed families had 3–6 members.

(iii) Monthly Family Income status:

Observation: The majority of families had a monthly income between $\textsf{₹}$10,000 and $\textsf{₹}$30,000. The calculated mean income was $\textsf{₹}$18,000 with a standard deviation of $\textsf{₹}$9,000.

(iv) Monthly Family budget on toothpaste:

Observation: The mean expenditure on toothpaste was $\textsf{₹}$104 per household per month, with a standard deviation of $\textsf{₹}$35.60.

(v) Major Occupational Status:

Observation: Most of the families were either service class or traders.

(vi) Preferred use of toothpaste and basis of selection:

Observation: Pepsodent, Colgate, and Close-up were the most preferred brands. The key factors influencing selection were standardized markings (like ISI), perceived quality, price, and the company's brand name.

(vii) Taste and Preferences:

Observation: Among the most used brands, the level of dissatisfaction was relatively low. Most people preferred gel-based and antiseptic toothpastes.

(viii) Media Influence:

Observation: Television and newspapers were the most influential media sources for information about toothpaste.

Concluding Note Of The Project Report

The survey reveals that the primary target market is urban, with family incomes between $\textsf{₹}$10,000 and $\textsf{₹}$30,000. The average household spends around $\textsf{₹}$104 per month on toothpaste. The most popular brands are Pepsodent and Colgate. Consumers prioritize quality, price, and brand name, and prefer gel or antiseptic-based formulas. Television is the most effective medium for advertising. Based on these findings, the new entrepreneur should focus on producing a quality gel or antiseptic toothpaste, price it competitively, build a strong brand name, and use television for advertising to reach the target audience effectively.