BUSINESS STATISTICS

UNIT-1
DATA
 DATA
 Definition Of Data
 Data can be defined as a collection of facts or
information from which conclusions may be drawn.
 Data is a set of values of subjects with respect to
qualitative or quantitative variables.
 Data can be defined as a systematic record of a
particular quantity. It is the different values of that
quantity represented together in a set. It is a collection
of facts and figures to be used for a specific purpose
such as a survey or analysis. When arranged in an
organized form, can be called information. The source
of data ( primary data, secondary data) is also
an important factor
 How will I know it is data?
 A data file might look like this:
 What forms does it take?
Types of / Classification of Data in Statistics

The data in Statistics are classified as follows:

Let us discuss the different types of data in Statistics herewith examples.

 Quantitative Data:
 Definition:
 Quantitative data is defined as the value of data in the form of
counts or numbers where each data-set has an unique numerical
value associated with it.
 This data is any quantifiable information that can be used for
mathematical calculations and statistical analysis, such that real-life
decisions can be made based on these mathematical derivations.
 Quantitative data is used to answer questions such as “How
many?”, “How often?”, “How much?”. This data can be verified and
can also be conveniently evaluated using mathematical techniques.
 For example, there are quantities corresponding to various
parameters, for instance, “How much did that laptop cost?” is a
question which will collect quantitative data. There are values
associated with most measuring parameters such as pounds or
kilograms for weight, dollars for cost etc.
 Types of Quantitative Data with Examples
 The most common types of quantitative data are as
below:
 Counter: Count equated with entities. For example, the
number of people who download a particular application
from the App Store.
 Measurement of physical objects: Calculating
measurement of any physical thing. For example, the HR
executive carefully measures the size of each cubicle
assigned to the newly joined employees.
 Sensory calculation: Mechanism to naturally “sense” the
measured parameters to create a constant source of
information. For example, a digital camera converts
electromagnetic information to a string of numerical data.
 Projection of data: 
 Future projection of data can be done using
algorithms and other mathematical analysis
tools.
 For example, a marketer will predict an increase
in the sales after launching a new product with
thorough analysis.
 Quantification of qualitative entities: 
 Identify numbers to qualitative information. For
example, asking respondents of an 
online survey to share the likelihood of
recommendation on a scale of 0-10.  
 Quantitative Data Examples
 Listed below are some examples of quantitative data that can
help understand exactly what this pertains:
 I updated my phone 6 times in a quarter.
 My teenager grew by 3 inches last year.
 83 people downloaded the latest mobile application.
 My aunt lost 18 pounds last year.
 150 respondents were of the opinion that the new product
feature will not be successful.
 There will be 30% increase in revenue with the inclusion of a new
product.
 500 people attended the seminar.
 54% people prefer shopping online instead of going to the mall.
 She has 10 holidays in this year.
 Product X costs $1000.
 Advantages of Quantitative Data
 Some of advantages of quantitative data, are:
 Conduct in-depth research: Since quantitative
data can be statistically analyzed, it is highly
likely that the research will be detailed.
 Minimum bias: There are instances in research,
where personal bias is involved which leads to
incorrect results. Due to the numerical nature of
quantitative data, the personal bias is reduced to
a great extent.
 Accurate results: As the results obtained are
objective in nature, they are extremely accurate.
 Disadvantages of Quantitative Data
 Some of disadvantages of quantitative data, are:
 Restricted information: 
 Because quantitative data is not descriptive, it
becomes difficult for researchers to make decisions
based solely on the collected information.
 Depends on question types: 
 Bias in results is dependent on the question types
included to collect quantitative data. The
researcher’s knowledge of questions and the
objective of research are exceedingly important
while collecting quantitative data.
 QUALITATIVE DATA –
 Definition
 Qualitative data is defined as the data that
approximates and characterizes.
 Qualitative data can be observed and recorded. This
data type is non-numerical in nature.
 This type of data is collected through methods of
observations, one-to-one interviews, conducting 
focus groups, and similar methods.
 Qualitative data in statistics is also known as
categorical data – data that can be arranged
categorically based on the attributes and properties
of a thing or a phenomenon.
 Qualitative data, also known as the categorical data,
describes the data that fits into the categories.
Qualitative data are not numerical. The categorical
information involves categorical variables that describe
the features such as a person’s gender, home town etc.
 Categorical measures are defined in terms of natural
language specifications, but not in terms of numbers.
 Sometimes categorical data can hold numerical values
(quantitative value), but those values do not have
mathematical sense. Examples of the categorical data
are birthdate, favourite sport, school postcode. Here,
the birthdate and school postcode hold the quantitative
value, but it does not give numerical meaning.
 Qualitative Data Examples
 Qualitative data is also called categorical data since this
data can be grouped according to categories.
 For example, think of a student reading a paragraph from
a book during one of the class sessions.
 A teacher who is listening to the reading gives feedback
on how the child read that paragraph. If the teacher gives
feedback based on fluency, intonation, throw of words,
clarity in pronunciation without giving a grade to the
child, this is considered as an example of qualitative data.
 It’s pretty easy to understand the difference between
qualitative and quantitative data. Qualitative data does
not include numbers in its definition of traits, whereas
quantitative data is all about numbers.
 Qualitative Data Examples
 Qualitative data is also called categorical data since this
data can be grouped according to categories.
 For example, think of a student reading a paragraph from
a book during one of the class sessions.
 A teacher who is listening to the reading gives feedback
on how the child read that paragraph. If the teacher gives
feedback based on fluency, intonation, throw of words,
clarity in pronunciation without giving a grade to the
child, this is considered as an example of qualitative data.
 It’s pretty easy to understand the difference between
qualitative and quantitative data. Qualitative data does
not include numbers in its definition of traits, whereas
quantitative data is all about numbers.
 The cake is orange, blue, and black in color (qualitative).
 Females have brown, black, blonde, and red hair
(qualitative).
 Quantitative data is any quantifiable information that
can be used for mathematical calculation or statistical
analysis. This form of data helps in making real-life
decisions based on mathematical derivations.
Quantitative data is used to answer questions like how
many? How often? How much? This data can be validated
and verified.
 The following are examples of quantitative data.
 There are four cakes and three muffins kept in the
basket (quantitative).
 One glass of fizzy drink has 97.5 calories (quantitative).
 Importance of Qualitative Data
 Qualitative data is important in determining the particular
frequency of traits or characteristics. It allows the statistician or
the researchers to form parameters through which larger data
sets can be observed. Qualitative data provides the means by
which observers can quantify the world around them.
 For a market researcher, collecting qualitative data helps in
answering questions like, who their customers are, what issues
or problems they are facing, and where do they need to focus
their attention, so problems or issues are resolved.
 Qualitative data is about the emotions or perceptions of
people, what they feel. In quantitative data, these perceptions
and emotions are documented. It helps the market researchers
understand the language their consumers speak and deal with
the problem effectively and efficiently.
 Advantages of Qualitative Data
 1. It helps in-depth analysis: Qualitative data
collected provide the researchers with a
detailed analysis of subject matters. While
collecting qualitative data, the researchers
tend to probe the participants and can
gather ample information by asking the right
kind of questions. From a series of questions
and answers, the data that is collected is
used to conclude.
 2. Understand what customers think: Qualitative
data helps the market researchers to understand
the mindset of their customers. The use of
qualitative data gives businesses an insight into
why a customer purchased a product.
Understanding customer language helps market
research infer the data collected more
systematically.
 3. Rich data: Collected data can be used to conduct
research in the future as well. Since the questions
asked to collect qualitative data are open-ended
questions, respondents are free to express their
opinions, leading to more information.
 Disadvantages of Qualitative Data
 1. Time-consuming: As collecting qualitative data is
more time consuming, fewer people are studying in
comparison to collecting quantitative data. Unless time
and budget allow, a smaller sample size is included.
 2. Not easy to generalize: Since fewer people are
studied, it is difficult to generalize the results of that
population.
 3.Dependent on the researcher’s skills: This type of
data is collected through one-to-one interviews,
observations, focus groups, etc. it relies on the
researcher’s skills and experience to collect information
from the sample.
 LEVELS OF MEASUREMENT OF
QUANTITATIVE DATA:
 Discrete Data
 Discrete data can take only discrete values.
Discrete information contains only a finite
number of possible values. Those values
cannot be subdivided meaningfully. Here,
things can be counted in the whole numbers.
 Example: Number of students in the class
 Continuous Data
 Continuous data is data that can be
calculated. It has an infinite number of
probable values that can be selected within a
given specific range.
 Example: Temperature range
Quantitative Data Qualitative Data

Associated with numbers Associated with details

Implemented when data is Implemented when data can be

numerical segregated into well-defined groups

Collected data can be Collected data can just be observed and

statistically analyzed not evaluated

Examples: Height, Weight, Examples: Scents, Appearance, Beauty,

Time, Price, Temperature, etc. Colors, Flavors, etc.
 Primary Data
 Primary data is a type of data that is collected by researchers
directly from main sources through interviews, surveys,
experiments, etc.
 Primary data are usually collected from the source—where
the data originally originates from and are regarded as the
best kind of data in research.
 The sources of primary data are usually chosen and tailored
specifically to meet the demands or requirements of a
particular research. Also, before choosing a data collection
source, things like the aim of the research and target
population need to be identified.
  Primary data are collected from relevant respondents. They
are not readily available, their collection and analysis need
rigorous efforts.
 Success of marketing research depends upon quality and
quantity of primary data. In fact, no research project can be
completed without primary data.
 Examples of Primary Data
 Market Research
 This is an important aspect of business strategy
that involves the process of gathering information
about the target market and customers. The data
gathered during market research is primary as it is
tailored specifically to meet the business needs.
 An organization doing market research about a
new product (say phone) they are about to release
will need to collect data like purchasing power,
feature preferences, daily phone usage, etc. from
the target market. The data from past surveys are
not used because the product differs.
 Student Thesis
 When conducting academic research or a thesis
experiment, students collect data from the primary
source. The kind of data collected during this
process may vary according to the kind of research
being performed—lab experiments, statistical data
gathering, etc.
 For example, a student carrying out a research
project with the aim of finding out the effect of
daily intake of fruit juice on an individual's weight
will need to take a sample population of 2 or more
people, feed them with fruit juice daily and record
the changes in their weight. The data gathered
throughout this process is primary.
 Trauma Survivors
 Although people react differently to trauma, there
is usually a trait common to people who have gone
through the same kind of trauma. the traumatic
experience will include interviewing the survivors,
sending them surveys, or any other primary source
of data collection.
 Experiences differ and every situation is unique.
Therefore, using secondary data may not be the
best option in this case.
 Characteristics of Primary Data:
 Primary data constitute the basis information
to solve the marketing problems.
 With reference to primary data, it can be
said that:
 1. Primary data are original data.
 2. Primary data are expensive.
 3. Collection of primary data takes
considerable time and efforts.
 4. They are collected with reference to
problem on hand.
 5. They are collected deliberately from
relevant respondents.
 6. Specific methods (like survey methods,
observation methods, experimental method,
etc.) and tools (like printed forms,
questionnaire, camera, etc.) are used for
collecting primary data.
 7. They constitute a basic input in the
research project.
 8. They are required be furnished, processed,
or analyzed before they are used.
 Sources of Primary Data:
 Primary data are the basic input in solving problem.
They are expensive, time consuming, and they need
more efforts. Sources of primary data depend upon
type of problem. They are collected by using specific
methods and tools.
 Most commonly used sources of primary data may
include:
 1. Consumers
 2. Retailers
 3. Wholesalers
 4. Dealers/agents
 5. Suppliers
 6. Employees of company
 7. Salesmen
 8. Trade associations
 9. Professional experts
 10. Top-level management
 11. Competitors
 12. Other business firms
 13. Service providers like banks, transporters,
insurance, etc.
 Advantages of Primary Data
 Specific
 Collecting your own data allows you the freedom to address issues
specific to your business, or research aim. In this case, the data collected
is exactly what the researcher wants and needs.
 The researcher reports it in a way that benefits the current situation of
the organization or research. For example, when doing market research
for a product, the data collected will be specifically for the product in
question.
 Accurate:
 Primary data is much more accurate compared to secondary data. For
example, when collecting statistical data from online sources, you are at
risk of coming across false data.
 This is because the data available online is not regulated, unlike the data
you collect yourself. This is very common in journalism, where blogs
share unverified and exaggerated information just to gain cheap traffic.
 Ownership
 The data collected through a primary source is usually owned by the researcher, who
may choose to either share or not share with others. In the market research example
stated earlier, researchers may keep the results to themselves and not give access to
their competitors who may want to use the information.
 Also, a researcher can choose to sell the data to make a huge amount of money
because they own it.
 Up to date information
 The data collected from primary sources are up-to-date, unlike that of the secondary
sources. It collects data in real-time and does not take information from stale and
outdated sources.
 For example, when the population of a community is something that continues to
fluctuate as people die and children are born. Going by the National Census, one may
not get accurate results of the population, and can only settle for estimates. 
 Control:
 A researcher can easily control the research design and methods to be used. As a
researcher, you can choose which subject to consider, and also control how the
information is gathered.
 There are no limitations to the kind and amount of data that can be generated by the
researcher.
 
 Disadvantages of Primary Data 
 Expensive:
 Compared to secondary data, the data collection process for primary
data is very expensive. No matter how little the research is, at least one
professional researcher will need to be employed to carry out the
research. Also, the research process itself may cost some amount of
money. How expensive it is, will be determined by which method is used
in carrying out the research.
 Time-consuming
 Going from the starting point of making the decision to perform the
research, to the point of generating data, the time is much longer
compared to the time it takes to acquire secondary data. Each stage of
the primary data collection process requires much time for execution.
 Feasibility
 It is not always feasible to carry out primary research because of the
volume and unrealistic demands that may be required. For example, it
will be unrealistic for a company to do a census of the people living in a
community, just to measure the size of their target market.
 SECONDARY DATA:
 Secondary data, on the other hand, are
published data. They are readily available. They
can be used directly without processing or
analysis. They are collected rather than
generated.
 Secondary data are those details which have
been collected for the purpose other than
specific research problem.
 They are also known as the recorded data. They
are published data. They have been collected by
other people for their contemporary problems.
 Sometimes, they are not useful. They are supplementary
to primary data. They support primary data. Extent to
which secondary data are used for marketing research
depends upon suitability, accuracy, and time.
 Secondary data consist of the information that already
exists somewhere, having been collected for other
purposes.
 Hardly problem can be solved only by secondary data.
They are used for exploring, defining, and understanding
problems, which can be solved by primary data.
 For collecting secondary data, there is no need for
employing qualified, experience, and capable research
officer. Similarly, special methods and tools are not used.
Such data can be easily collected.
 Characteristics of Secondary Data:
 Following are the key characteristics of
secondary data:
 1. Secondary data are published data, not
original data, for the research on the hand.
 2. They give the latest information
 3. They can be easily collected from various
internal and external sources.
 4. They are relatively cheaper; they need less
efforts, time, and money.
 5. They have been collected by other people for
their own problems and situation in the past.
 6. They are used as a supplementary to primary
data. Mostly, they are used for defining and
understanding problems.
 7. The use of secondary data is optional. Research
can be conducted even without the use of this type
of data.
 8. They can be used without processing; no need to
analyze them before they are used. They can be
used directly.
 9. Relevance, accuracy, and timing are the main
problems related to secondary data.
Sources of Secondary Data:
Secondary data can be collected from
various sources. Mostly they are
collected from published sources.
 There are two types of sources:
1. Internal Sources
2. External Sources
 Internal Sources:
 i. Sales and purchase records
 ii. Customers’ complaint notes
 iii. Sales orders
 iv. Salesmen’s reports
 v. Past research work of company
 vi. Other literature and publication work of
company
 vii. Information of the past special events,
etc.
 External Sources:
 i. Government publication and reports
 ii. Advertising media – daily newspapers, magazines and
periodicals, radio, television, etc.
 iii. Advertising agencies and marketing consultants
 iv. Universities and colleges
 v. Commercial and general libraries
 vi. Marketing research firms and consultants
 vii. Trade associations and technical and professional
groups
 viii. Internet surfing
 ix. Trade fairs and exhibitions
 x. Consumer rating agencies, etc.
Disadvantages of Secondary Data

1. Secondary data is something that seldom fits in the framework of the marketing research
factors. Reasons for its non-fitting are:-
a. Unit of secondary data collection-Suppose you want information on disposable
income, but the data is available on gross income. The information may not be
same as we require.
b. Class Boundaries may be different when units are same.
Before 5 Years After 5 Years
2500-5000 5000-6000
5001-7500 6001-7000
7500-10000 7001-10000

c. Thus the data collected earlier is of no use to you.

2. Accuracy of secondary data is not known.
Data may be outdated.
 Differences between Primary and Secondary Data:

Character Primary Data Secondary Data

Primary data refers to the Secondary data means data

Definition first-hand data gathered by collected by someone else
the researcher himself. earlier.

Data Real time data Past Data

Process Very Involved Quick and easy

Surveys, observations,
Government publications,
experiments,
Source websites, books, journal articles,
questionnaire, personal
internal records etc.
interview, etc.
 Differences between Primary and Secondary Data:

Character Primary Data Secondary Data

Cost-
Expensive Economical
effectiveness

Collection time Long Short

Always specific to the May or may not be specific to

Specificity
researcher’s needs. the researcher’s need.

Available in the crude

Form Available in the refined form
form

Accuracy and
More Less
Reliability
 OTHER TYPES OF DATA:
 Cross-Sectional Data
 Cross-sectional data 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.
 It is the data for a single time point or single
space point.
 This type of data is limited in that it cannot
describe changes over time or cause and
effect relationships in which one variable
affects the other.
 Time-Series Data
 Time series data occurs wherever the same
measurements are recorded on a regular basis.
 Quantities that represent or trace the values
taken by a variable over a period such as a
month, quarter, or year.
 The values of different phenomenon such as
temperature, weight, population, etc. can be
recorded over a different period of time.
 The values of the variable remain increasing or
decreasing or constant.
 The data according to time periods is called
time-series data. e.g. population in a different
time period.
 Spatial Data
 Also known as geospatial data or geographic information
it is the data or information that identifies the geographic
location of features and boundaries on Earth, such as
natural or constructed features, oceans, and more. 
 Spatial data is usually stored as coordinates and topology
and is data that can be mapped.
 Spatial data is used in geographical information systems
(GIS) and other geolocation or positioning services.
 Spatial data consists of points, lines, polygons and other
geographic and geometric data primitives, which can be
mapped by location, stored with an object as metadata
or used by a communication system to locate end-user
devices.
 Spatial data may be classified as scalar or vector data.
Each provides distinct information pertaining to
geographical or spatial locations.
 Ordered Data
 Data according to ordered categories is
called as ordered data.
 Ordered data is similar to a categorical
variable except that there is a clear ordering
of the variables.
 For example for category economic status
ordered data may be, low, medium and high.