QTTM509 Research

Methodology
Dr. Gurpreet Kaur (PhD Economics)
Asst. Prof.
MSOB
 Lecture Outcome

01 02 03
Understand what is Discuss the various Learn tools to
statistics types of data measure data
Introduction

Statistical thinking will

one day be as necessary
for efficient citizenship as
the ability to read and
write.

—H. G. Well
Definitions
By statistics, we mean
quantitative data affected to a
marked extent by the multiplicity
of causes.
Yule and Kendall
Definitions

By statistics we mean aggregates of facts affected to a marked extent by

the multiplicity of causes numerically expressed, enumerated or
estimated according to reasonable standards of accuracy, collected in a
systematic manner for predetermined purpose and placed in relation to
each other.
—Horace Secrist
WHY STUDY STATISTICS ?

• Statistics lies at the heart of the type of

quantitative reasoning necessary for making
• Important advances in the sciences, such as
medicine and genetics, and for making
important decisions in business and public
policy.
WHY STUDY STATISTICS ?

• In applying statistics to e.g., a scientific, industrial, or societal

problem, it is necessary to begin with a population or process to
be studied.
• Populations can be diverse topics such as "all persons living in a
country" or "every atom composing a crystal".
• It deals with all aspects of data including the planning of data
collection in terms of the design of survey and experiment.
 Descriptive Statistics

  Mean Std. Deviation N

Total outstanding loan 12.67 1.10 504

Cost operational per Acre 10.25 0.27 504

Institutional loan 10.80 4.41 504

Non institutional loan 6.62 6.18 504

Total HH expenditure 11.96 0.57 504

Income from other sources 0.85 2.82 504

Operational land Acres 1.99 0.85 504

Combine Dummy 0.01 0.09 504

Magnitude of machinery 1.03 0.44 504

Loan formal dummy 0.72 0.45 504

 Descriptive Statistics
  Mean Std. Deviation N

Total outstanding loan 12.67 1.10 504

Cost operational per Acre 10.25 0.27 504

Institutional loan 10.80 4.41 504

Non institutional loan 6.62 6.18 504

Total HH expenditure 11.96 0.57 504

Income from other sources 0.85 2.82 504

Operational land Acres 1.99 0.85 504

Combine Dummy 0.01 0.09 504

Magnitude of machinery 1.03 0.44 504

Loan formal dummy 0.72 0.45 504

What can we say about the farmers of Punjab
on the basis of above data?
Think and comment
• According to W. I. King,

‘Statistics are like clay of which you can make a God or a

Devil as you please.’
Think and comment

‘Science of statistics is the useful servant but only of great

value to those who understand its proper use.’
For example,
• The conclusion that smoking causes lung cancer, since 90 per cent of
people who smoke die before the age of 70 years, is statistically
invalid because here nothing has been mentioned about the
percentage of people who do not smoke and die before reaching the
age of 70 years.
questions
Data
What is data?
 Types of
Data

Numerical Categorical

Discrete Continuous
What is their gender?
Discrete and Continuous

HOW MANY STUDENTS WHAT IS THE

ARE IN THE CLASS? TEMPERATURE TODAY?
 Nominal Ordinal
Scale Scale
Scales of
Measurement
Interval Ratio
Scale Scale
Nominal
Scale
Ordinal Scale
 93
84 87

Interval Scale
 Is there any difference
between Ordinal Scale and
Interval Scale?
Ratio Scale

Ratio level
The ratio scale must
measurements possess
contain a zero value that
all the properties of
indicates that nothing
interval data with
exists for the variable at
meaningful ratio of two
zero point.
values.
Which Scale is What?
 State whether each of the following variables is
qualitative or quantitative and indicate the
measurement scale that is appropriate for each.
1. Age
2. Class rank
Let’s revise 3. Make of automobile
4. Annual sales
5. Soft-drink size (small, medium, large)
6. Earnings per share
7. Method of payment (cash, check, credit card)