Introduction to Developing Projects in Economics

The statistical tools you have studied—such as data collection, organisation, presentation, and measures of central tendency, dispersion, and correlation—are not just theoretical concepts. They are practical tools used in the analysis of data related to real-world economic activities like production, consumption, trade, and finance.

This chapter guides you through the process of developing a project. A project, typically involving a survey and a report, is an excellent way to apply these statistical tools to analyse information, understand problems, and suggest improvements. For example, you might conduct a project to:

• Collect information about a product from consumers.
• Analyse the market for a new product to be launched.
• Study the spread of information technology in schools.

Steps Towards Making a Project

Developing a successful project involves a series of systematic steps, from identifying the problem to drawing conclusions.

1. Identifying a Problem or an Area of Study

The first step is to be clear about what you want to study. Your objective will guide the entire process. Your area of interest could be the production or sale of a product (like cars, mobile phones, or soaps), a civic issue (like water or electricity problems in a locality), or a social issue (like consumer awareness).

2. Choice of Target Group

Identifying your target group—the specific group of people you want to study—is crucial. This choice determines the kind of questions you will ask. For example:

• If your project is about cars, your target group will likely be middle and higher-income households.
• If it's about a common consumer product like soap, your target group will include both rural and urban consumers.
• If it's about safe drinking water, your target group will be the entire population of the area.

3. Collection of Data

Your project's objective will determine the method of data collection.

• Primary Data: This is first-hand data collected by you for your specific purpose. It is usually gathered through a survey using a questionnaire or an interview schedule. The survey can be conducted via personal interviews, mail, phone, or email.
• Secondary Data: This is data that has already been collected by someone else. It is used when there is a shortage of time, money, or manpower, and the required information is readily available from sources like government reports, research papers, or websites.

If you use sampling, you must choose a suitable sampling method to ensure your sample is representative of the target group.

4. Organisation and Presentation of Data

Once the data is collected, it needs to be processed. This involves organising the raw data and presenting it in a clear and understandable format using tools like:

• Tabulation (creating tables).
• Diagrams (such as bar diagrams and pie charts).

5. Analysis and Interpretation

This is the core of the project, where you apply statistical tools to analyse the organised data.

• Measures of Central Tendency (like mean) help you find the average value.
• Measures of Dispersion (like standard deviation) help you understand the variability or spread in the data.
• Correlation helps you analyse the relationship, if any, between different variables.

6. Conclusion

In the final step, you draw meaningful conclusions based on your analysis and interpretation. You should summarise your findings and, if possible, provide suggestions or predict future prospects related to your study. For example, you might suggest changes in government policies or business strategies.

7. Bibliography

It is important to acknowledge all the sources you used for your project. In this section, you must mention the details of all secondary sources, such as magazines, newspapers, websites, and research reports, that you consulted.

Sample Project: A Study on Toothpaste Consumption

This section provides a simplified example of a project to guide you. The objective is to advise a new entrepreneur on setting up a toothpaste factory by studying consumer behaviour.

Project Objective

To study people's tastes with regard to toothpastes, their monthly expenditure, and other relevant facts to inform the launch of a new toothpaste product.

Key Information Needed:

• The average monthly expenditure on toothpaste.
• The most popular brands currently in demand.
• Customers' preferences for ingredients (e.g., gel, antiseptic).
• The major media influences on consumer demand.
• The relationship between income and the above factors.

Methodology

A survey will be conducted using a questionnaire to collect primary data from a sample of 100 households.

Sample Questionnaire

1. Name: _______________
2. Sex: _______________
3. Ages of family members: _______________
4. Total number of family members: _______________
5. Monthly family income: _______________
6. Location of residence: Urban / Rural
7. Does your family use toothpaste? Yes / No
8. If yes, which brand do you use? _______________
9. How many 100g packs do you use per month? _______________
10. Are you satisfied with this toothpaste? Yes / No
11. Are you prepared to try a new toothpaste? Yes / No
12. What are the main sources of your information about toothpaste? (Television, Newspaper, Internet, etc.)

(This is an abbreviated version of the full questionnaire.)

Data Analysis and Interpretation (Simplified Report)

After collecting data from 100 households, the information is analysed. Here are some sample findings:

1. Sample Profile

• Total Sample Size: 100 households
• Location: Urban 67%, Rural 33%
• Family Size: Majority of families had 3–6 members.
• Monthly Family Income: Majority had an income between ₹10,000 and ₹30,000. The mean income was ₹18,000.

2. Consumption Patterns

• Monthly Expenditure on Toothpaste: The mean expenditure was ₹104 per household, with a standard deviation of ₹35.60.
• Preferred Brands: Pepsodent, Colgate, and Close-up were the most preferred brands.
• Ingredient Preference: Majority of people preferred gel and antiseptic-based toothpastes.

3. Media Influence

The main sources of information about toothpaste were television and newspapers.

Concluding Note of the Project Report

The survey indicates that the target market is predominantly urban, middle-income families with 3-6 members. The most popular brands are Pepsodent, Colgate, and Close-up. Consumers show a strong preference for gel and antiseptic-based toothpastes. Advertisements, especially on television and in newspapers, are a major influencing factor. Therefore, a new entrepreneur should focus on launching a gel or antiseptic toothpaste, target middle-income urban families, and invest in a strong advertising campaign on television and in print media.

Multiple Choice Questions

Short Answer Type Questions

Long Answer Type Questions