Chapter 8 Use Of Statistical Tools

Introduction

Having studied various statistical tools, this chapter focuses on their practical application in analyzing economic problems. Developing a project involving data collection and analysis helps illustrate how statistical methods can be used to gain insights and inform decisions.

Steps Towards Making A Project

Developing a project typically involves several systematic steps:

Identifying A Problem Or An Area Of Study

Begin by clearly defining the topic or problem you want to investigate. This could be related to economic activities like the production or consumption of a product, or societal issues like access to services or consumer awareness.

Choice Of Target Group

Identify the specific group of people or entities that are relevant to your study. The target group helps determine the appropriate questions for your data collection instrument.

Collection Of Data

Based on your objective, decide whether to use primary data (collected directly using a questionnaire or interview schedule via personal interviews, mail, phone, or email) or secondary data (obtained from existing sources). The choice depends on factors like time, cost, and availability of information. If using sampling, select an appropriate method.

Organisation And Presentation Of Data

After collecting data, organize and present it using methods like tabulation and suitable diagrams (bar diagrams, pie diagrams, etc.), as learned in previous chapters. This makes the data manageable and easy to understand.

Analysis And Interpretation

Apply statistical tools to analyze the organized data. Measures of central tendency (mean), dispersion (standard deviation), and correlation help in calculating averages, variability, and relationships between variables. Interpret the results of this analysis.

Conclusion

Draw meaningful conclusions based on the analysis and interpretation of the data. If possible, include predictions or suggestions related to future trends or relevant policies.

Bibliography

List all secondary sources (magazines, newspapers, reports, etc.) used in the project.

Suggested List Of Projects

The text provides a list of suggested project topics that deal with various economic issues. Learners are encouraged to choose any topic related to an economic problem that interests them. The suggested projects cover diverse areas such as transportation systems, village industries, market research, literacy assessment, price monitoring, public amenities, participation in employment schemes, health and sanitation, food adulteration, immunization programs, saving habits, and farming practices.

Sample Project

A sample project is provided as a guide, illustrating the steps and application of statistical tools. This sample project focuses on advising a young entrepreneur who wants to set up a toothpaste factory. The study involves understanding consumer preferences and market characteristics through a survey.

Example Of Questionnaire To Be Used For This Project Report

A sample questionnaire is included, designed to collect relevant information about consumer tastes, monthly expenditure, brand preferences, media influences, and the relationship between income and these factors. The questionnaire includes questions about demographics, family details, income, location, occupation, toothpaste usage, desired qualities, current brands, satisfaction levels, willingness to try a new brand, desired features in a new toothpaste, and sources of information about toothpaste.

Data Analysis And Interpretation

Following data collection, the information is organized and analyzed. The sample project demonstrates how data can be summarized (e.g., total sample size, location breakdown, age distribution, family size, income status, expenditure on toothpaste, occupational status, brand preferences, media influence). It also shows how statistical measures like mean and standard deviation can be calculated and how data can be presented using diagrams like bar diagrams and histograms.

Example Of Simplified Project Report

A simplified example of a project report based on the sample questionnaire is provided. It presents observations and conclusions drawn from the analyzed data, including demographic characteristics of the sample, family size, income distribution, monthly expenditure on toothpaste, preferred brands and their qualities, factors influencing brand selection, and the role of media in influencing consumers.

Sample Data Distribution for Analysis:

(i) Age distribution:

(ii) Family Size:

(iii) Monthly Family Income status:

Table for Frequency Distribution of Monthly Family Income and Calculation of Mean and Standard Deviation (Step Deviation Method) - using sample data from (iii):

Let A=25000, c=10000.

Mean Income = $25000 + \frac{-70}{100} \times 10000 = 25000 - 7000 = 18000$.

Standard Deviation = $c \times \sqrt{\frac{\sum fd'^2}{\sum f} - (\frac{\sum fd'}{\sum f})^2} = 10000 \times \sqrt{\frac{130}{100} - (\frac{-70}{100})^2} = 10000 \times \sqrt{1.3 - (-0.7)^2} = 10000 \times \sqrt{1.3 - 0.49} = 10000 \times \sqrt{0.81} = 10000 \times 0.9 = 9000$.

Mean income is Rs 18000, standard deviation is Rs 9000.

Table for Frequency Distribution of Monthly Family Expenditure on Toothpaste and Calculation of Mean and Standard Deviation (Step Deviation Method) - using simplified data from (iv):

Let A=100, c=40.

Mean Expenditure = $100 + \frac{10}{100} \times 40 = 100 + 4 = 104$.

Standard Deviation = $c \times \sqrt{\frac{\sum fd'^2}{\sum f} - (\frac{\sum fd'}{\sum f})^2} = 40 \times \sqrt{\frac{90}{100} - (\frac{10}{100})^2} = 40 \times \sqrt{0.9 - (0.1)^2} = 40 \times \sqrt{0.9 - 0.01} = 40 \times \sqrt{0.89} \approx 40 \times 0.943 \approx 37.72$. (The text states 35.60, there might be a different dataset used for that calculation in the original source).

Mean expenditure on toothpaste is Rs 104, standard deviation is approx Rs 37.72.

(v) Major Occupational Status:

(vi) Preferred use of toothpaste:

(vii) Basis of selection:

(ix) Ingredients Preference:

(x) Media Influence:

Concluding Note Of The Project Report

The sample report concludes by summarizing the findings based on the analyzed data, highlighting key characteristics of the surveyed population, their income, family size, occupation, and toothpaste consumption patterns and preferences, along with the influence of various media on their choices.