Class 11 Statistics for Economics Chapter 8: Use of Statistical Tools
1. Introduction
Statistics helps us collect, organize, present, analyze, and interpret data. It is widely used in:
- Production
- Consumption
- Banking
- Insurance
- Trade
- Transport
- Education
- Health services
This chapter explains how statistical tools are used while preparing a project report and solving real-life economic problems.
Steps in Making a Project
Step 1: Identifying the Problem
First, decide what you want to study.
Examples:
- Consumer awareness
- Water supply problems
- Electricity issues
- Sale of a product
- Literacy levels
- Health and sanitation
Objective:
Clearly define the purpose of the study.
Step 2: Choice of Target Group
A target group is the set of people from whom information is collected.
Examples:
| Project | Target Group |
|---|---|
| Cars | Middle and high-income families |
| Soap | Rural and urban consumers |
| Drinking Water | Rural and urban households |
| Education | Students and parents |
Importance:
- Helps prepare suitable questions.
- Makes data collection easier and more accurate.
Step 3: Collection of Data
Data can be collected using:
A. Primary Data
Collected directly by the investigator.
Methods:
- Questionnaire
- Personal Interview
- Telephone Survey
- Email Survey
- Postal Survey
B. Secondary Data
Collected from already available sources.
Sources:
- Books
- Journals
- Newspapers
- Government Reports
- Websites
Advantages of Secondary Data
- Saves time
- Saves money
- Easily available
Step 4: Organisation and Presentation of Data
After collection, data should be arranged systematically.
Methods:
1. Classification
Grouping similar data together.
2. Tabulation
Presenting data in tables.
3. Diagrams and Graphs
- Bar Diagram
- Pie Diagram
- Histogram
- Frequency Polygon
Benefits:
- Easy understanding
- Better comparison
- Attractive presentation
Step 5: Analysis and Interpretation
Statistical tools are used to analyze data.
Important Tools
A. Measures of Central Tendency
Used to find the average value.
Types:
- Mean
- Median
- Mode
B. Measures of Dispersion
Show how scattered the data is.
Examples:
- Range
- Standard Deviation
C. Correlation
Shows relationship between two variables.
Example:
Income and expenditure.
Step 6: Conclusion
After analysis, draw meaningful conclusions.
Conclusion Should Include:
- Main findings
- Suggestions
- Future prospects
- Policy recommendations
Step 7: Bibliography
List all secondary sources used.
Examples:
- Books
- Magazines
- Newspapers
- Reports
- Websites
Suggested Project Topics
- Transport system improvement
- Village cottage industry proposal
- Impact of advertisements on sales
- Literacy survey
- MRP overcharging investigation
- Drinking water facilities
- Women’s participation in employment schemes
- Health and sanitation survey
- Food adulteration study
- Polio immunization programme
- Savings habits survey
- Farming practices and farmer problems
Sample Project: Toothpaste Market Survey
Objective
To study:
- Consumer preferences
- Popular brands
- Monthly expenditure
- Desired toothpaste qualities
- Advertising influence
Information Collected
Personal Information
- Name
- Gender
- Age
- Family size
- Income
Consumer Information
- Toothpaste used
- Brand preference
- Satisfaction level
- Monthly consumption
- Features desired
Media Influence
- Television
- Newspaper
- Radio
- Internet
- Cinema
Important Findings of Sample Project
Family Size
Most families had:
3–6 members
Income Level
Most households earned:
₹10,000 – ₹30,000 per month
Monthly Toothpaste Expenditure
Average Expenditure:
₹104 per month
Popular Toothpaste Brands
Most preferred brands:
- Pepsodent
- Colgate
- Close-Up
Preferred Features
People preferred:
- Gel toothpaste
- Antiseptic toothpaste
Major Influencing Media
Most consumers were influenced by:
- Television
- Newspapers
Important Statistical Tools Used in Projects
| Tool | Purpose |
|---|---|
| Mean | Average value |
| Median | Middle value |
| Mode | Most frequent value |
| Range | Difference between highest and lowest values |
| Standard Deviation | Measures dispersion |
| Correlation | Measures relationship |
| Bar Diagram | Comparison |
| Pie Diagram | Percentage representation |
| Histogram | Frequency distribution |
Key Terms to Remember
Population
Entire group under study.
Sample
Part of the population selected for study.
Questionnaire
A list of questions used to collect information.
Variable
A quantity that can take different values.
Frequency
Number of times a value occurs.
Class Interval
Difference between upper and lower limits of a class.
Class Mark
Midpoint of a class interval.
Census Method
Study of every unit in the population.
Random Sampling
Every unit has an equal chance of selection.
Qualitative Data
Data based on qualities.
Example: Gender, Religion
Quantitative Data
Data expressed in numbers.
Example: Income, Age
Quick Revision
Project Preparation Flow
Identify Problem
⬇
Select Target Group
⬇
Collect Data
⬇
Organise Data
⬇
Present Data
⬇
Analyze Data
⬇
Interpret Results
⬇
Draw Conclusions
⬇
Prepare Bibliography
Complete Question Bank (Class 11 Statistics for Economics)
A. Multiple Choice Questions (MCQs)
1. The first step in preparing a project is:
A) Data collection
B) Analysis
C) Identifying the problem
D) Conclusion
Answer: C
2. The group from whom information is collected is called:
A) Sample
B) Target Group
C) Population
D) Variable
Answer: B
3. Data collected directly by the investigator is called:
A) Secondary Data
B) Census Data
C) Primary Data
D) Published Data
Answer: C
4. Which of the following is a source of primary data?
A) Government Report
B) Newspaper
C) Questionnaire
D) Journal
Answer: C
5. Which of the following is a source of secondary data?
A) Interview
B) Questionnaire
C) Observation
D) Magazine
Answer: D
6. Mean is a measure of:
A) Dispersion
B) Correlation
C) Central Tendency
D) Classification
Answer: C
7. Standard Deviation measures:
A) Average
B) Variation
C) Relationship
D) Frequency
Answer: B
8. Correlation measures:
A) Frequency
B) Average
C) Relationship between variables
D) Classification
Answer: C
9. Which diagram represents parts of a whole?
A) Histogram
B) Pie Diagram
C) Bar Diagram
D) Frequency Polygon
Answer: B
10. The last stage of a project is:
A) Data Collection
B) Presentation
C) Conclusion
D) Sampling
Answer: C
11. Bibliography contains:
A) Raw data
B) Graphs
C) Sources of information
D) Questionnaire
Answer: C
12. Postal surveys require:
A) Telephone
B) Covering Letter
C) Computer
D) Interview
Answer: B
13. Which of the following is NOT a statistical tool?
A) Mean
B) Standard Deviation
C) Correlation
D) Painting
Answer: D
14. The toothpaste project used:
A) Census method
B) Observation method
C) Questionnaire method
D) Experimental method
Answer: C
15. Which medium influenced most consumers in the sample project?
A) Radio
B) Cinema
C) Television
D) Exhibitions
Answer: C
B. Fill in the Blanks
- The first step of a project is ________ the problem.
Answer: identifying
- Data collected for the first time is called ________ data.
Answer: primary
- Data collected from books and reports is called ________ data.
Answer: secondary
- A list of questions used in a survey is called a ________.
Answer: questionnaire
- Mean is a measure of central ________.
Answer: tendency
- Standard deviation is a measure of ________.
Answer: dispersion
- Correlation shows the ________ between variables.
Answer: relationship
- Pie diagrams represent data in the form of ________.
Answer: sectors
- The final stage of a project is drawing ________.
Answer: conclusions
- Bibliography contains details of ________ sources.
Answer: secondary
C. True or False
- Primary data is collected directly by the investigator.
Answer: True
- Secondary data is always more accurate than primary data.
Answer: False
- Mean is a measure of dispersion.
Answer: False
- Correlation measures relationship between variables.
Answer: True
- Questionnaire is used for collecting data.
Answer: True
- Bibliography is prepared before data collection.
Answer: False
- Bar diagrams help in data presentation.
Answer: True
- Sample must represent the population.
Answer: True
- Standard deviation measures variability.
Answer: True
- Conclusion is drawn before analysis.
Answer: False
D. Match the Following
| Column A | Column B |
|---|---|
| Questionnaire | List of Questions |
| Mean | Average |
| Standard Deviation | Dispersion |
| Correlation | Relationship |
| Bibliography | Sources Used |
| Sample | Part of Population |
| Pie Diagram | Percentage Representation |
| Primary Data | First-hand Data |
E. One Word Answer Questions
- Data collected directly from respondents.
Answer: Primary Data
- Average of observations.
Answer: Mean
- Measure of variability.
Answer: Standard Deviation
- Relationship between two variables.
Answer: Correlation
- Group selected for study.
Answer: Sample
- Entire group under study.
Answer: Population
- Collection of questions.
Answer: Questionnaire
- Final step of project.
Answer: Conclusion
F. Very Short Answer Questions (1 Mark)
- What is a project?
- Define target group.
- What is primary data?
- What is secondary data?
- What is a questionnaire?
- Define sample.
- Define population.
- What is tabulation?
- What is bibliography?
- What is mean?
G. Short Answer Questions (3 Marks)
- Explain the steps involved in making a project.
- Differentiate between primary and secondary data.
- Explain the importance of target group selection.
- What are the methods of collecting primary data?
- Explain the role of statistical tools in project work.
- What is the importance of data presentation?
- Explain bibliography.
- Why is conclusion important in a project?
H. Long Answer Questions (5 Marks)
- Explain all the steps involved in preparing a project report.
- Distinguish between primary and secondary data with examples.
- Explain how data is collected, organised and analysed in a project.
- Describe the toothpaste survey project given in the chapter.
- Explain the role of statistical tools in economic analysis.
I. Assertion-Reason Questions
1.
Assertion (A): Mean is used to find the average value.
Reason (R): Mean is a measure of central tendency.
A) Both A and R are true and R explains A.
B) Both A and R are true but R does not explain A.
C) A is true but R is false.
D) A is false but R is true.
Answer: A
2.
Assertion (A): Bibliography is included in a project report.
Reason (R): It contains details of sources used.
Answer: A
3.
Assertion (A): Correlation measures relationship between variables.
Reason (R): Correlation measures average.
Answer: C
J. HOTS Questions
- Why should a researcher clearly define the objective before collecting data?
- Why is sample selection important in a survey?
- Can a project be completed using only secondary data? Explain.
- How does television influence consumer behavior?
- Why should conclusions be based on statistical analysis?
K. Case-Based Questions
Case Study 1
A student wants to study the drinking water facilities available in a village. He prepares a questionnaire and collects information from 100 households.
Questions:
- What type of data is being collected?
- What is the target group?
- Which method of data collection is used?
- Why is the questionnaire important?
Case Study 2
A company wants to launch a new toothpaste and conducts a survey about customer preferences.
Questions:
- Why is the survey conducted?
- Which statistical tools can be used?
- What information should be collected?
- How can conclusions help the company?
L. Important Exam-Based Questions
Most Important 1 Mark
- Define primary data.
- Define secondary data.
- What is bibliography?
- What is correlation?
- What is target group?
Most Important 3 Marks
- Explain primary and secondary data.
- Explain data collection methods.
- Explain project preparation steps.
Most Important 5 Marks
- Explain the complete procedure of project preparation.
- Describe the toothpaste survey project.
- Explain the role of statistical tools in project work.