Submitted To

Submitted By

Sir Dr. Waqar Akram

Bharat Kumar
BBA-Sec C

Basic Econometrics
Types of Measurement Scales
There are four types scale; nominal, ordinal, interval and ratio. These are essentially approaches
to classify distinctive sorts of variables. These type of data mostly we use for different
measurement even though in our real life. Concept of measurement scales was given by Stanley
Stevens. These four measurement scales (nominal, ordinal, interval, and ratio) are best described
as follow;

Nominal Scale
Nominal scales are used for labeling variables, without any quantitative value. Nominal scale
could basically be called marks. Following are some example which are fundamentally
unrelated and none of them have any numerical importance. A good way to remember the
nominal scale is that, it always sound a lot like name or kind of names.

Example: Names of major sectors of Pakistan

Agriculture, mining, petroleum, coal and textile

Colors of football team jersey

Red, Blue, Black, and white

Ordinal Scale
In this scale numbers are used to place objects in order. But, there is no information regarding the
differences (intervals) between points on the scale. In each case we can only identify that one
object is greater than or better than other object, but we cannot identify exactly how it is. Ordinal
scales are typically measures of non-numeric concepts like satisfaction, happiness, discomfort,
etc.

Example: How much your current income satisfy you?

Very unsatisfied
Somewhat unsatisfied
Neutral
somewhat satisfied
very satisfied

Submitted To: Dr Waqar Akram

Page 1

Basic Econometrics
Interval scale
An interval scale is a numeric scale on which equal intervals between objects, represent equal
differences. The interval differences are meaningful. But, we cant defend ratio relationships
between objects. The classic example of an interval scale is Celsius temperature because the
difference between each value is the same. For example, the difference between 60 and 50
degrees is a measurable 10 degrees, as is the difference between 80 and 70 degrees. There is
problem with interval scales: they dont have a true zero. For example, there is no such thing
as no temperature. Without a true zero, that is it is impossible to compute ratios.
Examples: What is your monthly salary?

10,000
20,000
30,000
40,000
50,000

Ratio Scale
Ratio scale is a perfect measurement because it tell us about the order, exact value between units
and it also have absolute zero-which allows for a wide range of both descriptive and inferential
statistics to be applied. Best example of ratio variable are height and weight. Central tendency
can be measure by mode, median, or mean.

Submitted To: Dr Waqar Akram

Page 2

Basic Econometrics
Type of Data
Time Series data
A time series is a sequence of measurements of the same variable collected over time. Most
often, the measurements are made at regular time intervals. One difference from standard linear
regression is that the data are not necessarily independent and not necessarily identically
distributed.
Daily Price Index of Engro Fertilizer Stock Exchange of August 2016

Date

Open

High

Low

Close

Volume

26-Aug-2016
25-Aug-2016
24-Aug-2016
23-Aug-2016
22-Aug-2016
19-Aug-2016
17-Aug-2016
16-Aug-2016
15-Aug-2016
12-Aug-2016
11-Aug-2016
10-Aug-2016

310.10
310.50
306.40
309.51
311.00
326.40
335.00
332.08
333.00
335.29
337.80
335.50

311.00
312.50
310.40
310.95
307.39
326.70
336.89
334.90
333.88
335.99
338.00
337.90

307.01
309.25
304.02
305.04
307.39
310.10
331.01
331.30
331.00
332.50
334.31
334.75

307.87
309.98
308.94
306.02
309.35
310.78
331.79
333.61
332.09
332.97
334.84
335.66

1,138,200
1,190,400
2,343,100
1,966,400
3,264,600
5,498,500
1,708,000
1,015,100
472,700
484,400
1,135,300
1,143,100

Monthly Consumer Price Index of Pakistan year 2015-16

Year

2015

2016

Month

Aug

Sept

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

CPI

202.25

202.04

203.03

204.22

203.04

203.49

202.98

203.28

206.43

205.99

207.3

210.08

Quarterly Terms of Trade and Unit Value Indices of Exports and Imports (1990-91=100)
Year/ Quarter

Terms of

Unit Value Indices of Exports

Submitted To: Dr Waqar Akram

Page 3

Unit Value Indices of Imports

Basic Econometrics
Trade

2012-13
Jul-Sep
Oct-Dec
Jan-Mar
Apr-Jun

53.94
53.43
53.91
53.91

684.66
709.08
728.42
739.63

1269.28
1327.23
1351.28
1370.44

54.54
54.61
54.8
53.17

745.76
745.57
771.50
748.62

1367.33
1365.33
1407.91
1408.02

52.24
54.41
55.87
53.76

753.27
762.69
769.06
751.81

1441.91
1401.74
1367.64
1398.5

53.67
56.66

712.89
701.89

1328.2
1338.67

2013-14
Jul-Sep
Oct-Dec
Jan-Mar
Apr-Jun

2014-15
Jul-Sep
Oct-Dec
Jan-Mar
Apr-Jun

2015-16
Jul-Sep
Oct-Dec

Annual GDP growth rate of Pakistan

Indicator
GDP growth rate

2011
3.62

2012
3.84

2013
3.56

2014
4.02

2015
4.24

Decennially Livestock Census of Pakistan in million

Species

1976

1986

1996

2016

Buffaloes
Cattles
Goats
Sheep
Camel
Horses
Asses
Mules
09-Aug-2016

10.6
14.9
21.7
18.9
00.8
00.4
02.2
00.06
335.00

15.7
17.5
29.9
23.3
01.0
00.4
03.0
00.1

20.3
20.4
41.2
23.5
00.8
00.3
03.6
00.1
333.75

27.3
29.6
53.8
26.5
00.9
00.3
04.3
00.2

Submitted To: Dr Waqar Akram

336.00

Page 4

334.02

446,400

Basic Econometrics
08-Aug-2016
04-Aug-2016
03-Aug-2016
02-Aug-2016
01-Aug-2016

330.97
332.00
330.40
334.50
334.01

334.90
332.50
333.00
335.00
337.27

330.01
330.00
328.02
328.55
333.50

333.73
330.18
330.89
329.27
334.22

686,700
470,000
990,500
1,035,200
699,400

Cross Sectional data

Cross-sectional data, or a cross section of a study population, in statistics and econometrics is a
type of data collected by observing many subjects (such as individuals, firms, countries, or
regions) at the same point of time, or without regard to differences in time.
Example: Cpi Transportation of different countries in month of July
Last

WORLD

Albania
Algeria
Angola
Austria
Bahrain
Bangladesh
Belgium
Benin
Bolivia
Bosnia And Herzegovina
Botswana
Brazil
Bulgaria
Burundi
Canada
Chile
Colombia
Costa Rica
Croatia
Cyprus
Czech Republic
Denmark

99.36
190.93
141.19
99.10
126.40
207.41
100.14
112.10
133.73
98.98
159.90
4417.08
7265.76
105.00
128.90
105.92
122.39
96.74
96.60
97.05
100.90
99.30

Submitted To: Dr Waqar Akram

Previous
Jul/16
Jun/16
Jul/16
Jul/16
Jul/16
Jul/16
Jul/16
Jun/16
Jul/16
Jul/16
Jul/16
Jul/16
Jul/16
Jul/16
Jul/16
Jul/16
Jul/16
Jul/16
Jul/16
Jul/16
Jul/16
Jul/16

Page 5

98.61
191
140
98.9
126
206
99.57
115
132
98.64
160
4399
7136
103
131
107
122
93.84
97.3
96.3
101
99.2

Highest

Lowest

104
191
141
102
127
207
102
140
134
114
175
4449
9083
105
133
108
122
106
97.3
104
108
104

73.5
142
10.83
95.9
100
131
85.46
91.2
40.05
94.56
98.2
0
87.28
99.8
10.9
98.6
44.63
64.82
93
92.78
93
77.7

Basic Econometrics
Dominica
Dominican Republic
Ecuador
Egypt
El Salvador
Estonia
Ethiopia
Euro Area
Finland
France
Gabon

114.32
114.32
104.97
144.80
106.81
174.23
101.40
100.03
101.50
100.69
132.40

Jul/16
Jul/16
Jul/16
Jul/16
Jul/16
Jul/16
Jul/16
Jul/16
Jul/16
Jul/16
Aug/15

115
115
105
144
107
177
102
99.68
101
99.95
130

127
127
106
145
118
210
104
104
102
103
132

18.64
18.64
79.77
100
94.18
43
97.6
66
97.5
57.1
97.5

Pooled Data
It is a combination of time series and cross sectional data.
Characteristics of Adults in Scotland - Age

Aberdeen
City
Aberdeensh
ire
Angus
Argyll &
Bute
Clackmann
anshire

16
to
19
5.8

20
to
24
11.0

25
to
29
11.2

30
to
34
9.4

35
to
39
7.7

40
to
44
8.0

45
to
49
8.1

50
to
54
7.8

55
to
59
6.9

934

1,008

5.9

6.7

6.2

6.4

7.7

9.9

10.1

9.4

8.7

946

1,090

5.7
5.6

6.5
6.7

5.9
5.9

5.5
4.8

6.8
6.4

8.5
8.4

9.6
9.2

9.0
9.0

8.3
8.3

530
431

495
410

6.3

7.7

6.9

6.6

7.5

9.6

9.9

8.8

8.0

471

224

Submitted To: Dr Waqar Akram

Page 6

Unweighted
Base

Weighted
Base

Basic Econometrics
Dumfries &
Galloway
Dundee
City
East
Ayrshire
East
Dunbartons
hire
East
Lothian
East
Renfrewshi
re
Edinburgh,
City of
Eilean Siar
Falkirk
Fife
Glasgow
City
Highland
Inverclyde
Midlothian
Moray
North
Ayrshire
North
Lanarkshir
e
Orkney
Islands
Perth &
Kinross
Renfrewshi
re
Scottish
Borders
Shetland
Islands
South
Ayrshire
South
Lanarkshir
e
Stirling
West
Dunbartons

5.5

6.3

5.4

5.0

6.1

8.2

9.6

8.9

8.5

1,357

672

6.8

11.6

9.8

8.0

6.1

7.3

8.1

7.9

6.6

627

659

6.2

7.9

6.9

6.1

7.3

9.4

9.6

8.8

7.7

508

538

6.3

7.3

6.4

5.3

5.8

8.5

10.1

10.
0

8.4

505

467

6.3

7.2

6.0

5.3

7.4

10.0

10.0

9.3

7.9

443

430

6.8

7.4

6.0

5.4

6.2

9.0

10.5

10.
1

8.3

417

392

5.5

10.8

12.5

10.9

8.4

8.1

7.9

7.3

6.0

1,774

2,289

5.2
6.2
6.2
5.8

5.2
7.5
8.9
10.7

4.9
7.0
7.1
12.1

5.7
7.5
6.6
10.4

7.2
8.2
7.1
8.5

9.0
9.7
8.9
8.4

9.4
9.7
9.2
8.5

9.1
8.6
8.5
7.7

8.7
7.4
7.6
6.4

449
755
1,687
2,124

118
684
1,641
2,718

5.4
5.9
6.3
6.2
6.2

6.2
7.8
8.0
7.1
7.6

6.2
7.4
7.1
6.1
6.4

6.4
6.4
6.2
5.5
5.9

7.0
6.6
7.1
7.0
6.7

8.7
8.6
9.4
9.4
8.7

9.7
10.0
9.6
9.7
9.5

9.3
9.2
9.1
8.8
8.8

8.9
7.8
7.9
8.0
8.1

999
466
358
467
588

996
356
362
391
603

6.2

7.9

8.0

7.4

8.1

9.7

9.8

8.8

7.7

1,022

1,430

5.6

6.1

5.7

6.1

6.7

9.1

9.7

9.2

8.7

446

91

5.6

7.6

8.1

6.1

6.4

8.2

9.2

8.5

7.8

599

676

5.8

8.0

7.8

7.1

6.9

9.3

10.1

9.1

7.6

645

762

5.5

6.2

5.1

5.1

6.7

9.3

9.9

9.4

8.4

526

507

6.1

6.6

6.3

7.4

7.9

8.8

9.9

8.8

8.5

453

99

5.5

7.0

6.2

5.5

6.3

8.2

9.2

9.1

8.4

469

507

6.0

7.4

7.4

6.9

7.5

9.3

9.7

9.2

8.1

1,010

1,390

7.7
6.1

10.7
8.2

6.7
8.3

5.4
6.8

6.5
6.9

8.9
8.9

9.3
9.6

8.4
9.0

7.3
8.1

561
428

405
403

Submitted To: Dr Waqar Akram

Page 7

Basic Econometrics
hire
West
Lothian

6.3

7.9

7.7

7.4

8.6

10.6

10.2

8.9

7.5

569

749

Scotland

6.0

8.5

8.3

7.4

7.4

8.9

9.3

8.6

7.6

23,564

23,564

Panel data
A longitudinal, or panel, data set is one that follows a given sample of individuals over time, and thus
provides multiple observations on each individual in the sample.

Submitted To: Dr Waqar Akram

Page 8