1/4/24, 12:36 PM Organization of Data

Organization of Data
Economics Articles / Tutorial Titles

Introduction
Data is an invaluable part of statistics and plays a vital role in economics. However, raw data
is not usable, and to make it meaningful, it needs to be organized. Data organization is
therefore a primary and unavoidable function for statistical and economic insights.

Organization of Data: Definition

Organization of data refers to classifying and organizing data to make it more
meaningful and usable. In an organization process, data is ranked in the most logical and
orderly fashion so that anyone who seeks to use the data for whatever reason can get it
readily available.

It is easy to see why the organization is important. Organization of data offers insights to
take actionable steps that help analysts and researchers understand the population and
demography better. Organization or classification of data is done in such a manner that the
extractor of data gets easy access to all of the data in a simple and easy manner. So, it helps
the researchers save time and resources while looking for actionable insights.

Organization of data can also be termed as categorizing raw data into simple forms. In an
organization process, therefore, researchers must follow some rules to avoid
misappropriation and misuse of data.

Classification: Definition
Classification is the process of classifying or categorizing data depending on their
resemblances and affinities. Classification leads to the unity of attributes that may be
available in a diversity of individuals.

Classification is a part of organizing data and it helps researchers in finding the

matches and mismatches of attributes among the populations under study.

Classification helps in gathering entities with similar attributes as the entities are
grouped according to their qualities that may be fixed according to research
objectives.

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Classification is a must for raw data to be grouped into actionable forms. Without
classification, raw data will be of no use and it will require lots of hardship to find the
required patterns for a study.

Classification removes these hardships in finding useful data from a set of received
raw data patterns in a study.

Classification of data is usually done according to the needs of the study. The
categories in a classification process must be classified in a meaningful sense so that
they can be used without having to reach erroneous outcomes. That is why neat
classification is so important in the statistical process of data organization.

Objectives of Classification
The objective of data classification can be discussed under the following categories:

Simplification and briefness: Classification helps make raw data simple to

understand and use. It helps data to be presented in a brief manner. So, researchers
and analysts can get simplified and brief data after classification has been performed.

Utility: Classified data can be utilized easily and more readily than raw data.
Classification helps to make data more utilizable and meaningful for use.

Distinctiveness: Classification also makes data more distinct. As the categories are
strictly defined, one can find the required data in a distinct form. Distinctiveness is
one of the reasons why the classification of data is so popular and common.

Comparability: Classification of data makes it more comparable within its own limits
or with another set of external data. This helps researchers check whether the data is
reasonable and useful for a particular study.

Reliable arrangement: Classification helps to arrange data that can be accessed

reliably by one and all. Users of data can use the data without having to go through a
mess as it is already categorized in the required form. Moreover, as the arrangement
is performed in a scientific way, it helps to derive the required data without any error.

Attractiveness and effectiveness: Classification of data makes it more attractive

and effective for use. Therefore, working with classified data is more reliable and less
time-consuming which increases its effectiveness.

Characteristics of a Good Classification

To be effective and usable in nature, classifications must have some important attributes.

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Some of these attributes are the following:

Comprehensiveness: To be considered as good, a classification must be

comprehensive in nature. It must include all data and categorize them in a reliable
and usable manner.

Clarity: Clarity is another condition of classification to be good and useful. In a good

classification, data must be in a clear and concise form. Without clarity, classifications
may be confusing. That is why classification must be done with simplicity and clarity
in mind.

Homogeneity: Godo classification must be homogenous too. Without homogeneity,

achieving simplicity and clarity may be hard. Homogeneity is therefore important
because raw data needs to be presented in an evenly distributed form.

Stability: For a classification to be enduring, it must be stable for the long term. Too
many changes in data may make the presentation unstable and so attention must be
paid to make data classification stable.

Elasticity: Good classifications should also be elastic in nature so that they can be
used for a variety of purposes. As elasticity makes data classification usable for
various purposes under many schools of study, it is an unavoidable quality of
classification.

Basis of Classification
Classification may be based on the following attributes:

Geographical Classification
In geographical distribution, geography or the locations under study are the bases. For
example, a data classification of populations of various states of India may be considered a
geographical classification.

Chronological Classification
This type of classification of data is based on time differences. For example, the net income
of a company for the last five years can be considered a chronological classification.

Qualitative Classification
This type of classification is based on the quality or attributes of the classification.For
example, the classification of malnourished children in a region can be considered qualitative

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classification. Qualitative classification can be of two types - simple and manifold

classifications.

Quantitative or numerical Classification

Quantitative classifications are related to numerical data. It is also called classification by
variables.

Examples may include the amount of rice consumed by people in a range of regions.

Conclusion
It is impossible to make inferences from a lot of raw data and hence classification of data is
important. Organizing data in presentable forms is necessary for a correct judgment of
variables and economic situations. That is why the organization of data is so important.

Organization of data is also applicable to a detailed study of economics under various

circumstances. Although the organization of data is a subject of statistics, it is used
comprehensively in economics too. As data is unavoidable for a correct inference of economic
situations, its use in an organized form is also important. That’s the reason why economists
organize data for correct inference and to have a better view of the studies under
consideration.

FAQs
Q1. What are some rules of thumb for organizing data?

Ans. Some rules of thumb for organizing data are -

Using clear and concise names of files.

Keeping titles short.

Using consistent file version management.

Create and use a data dictionary to make categories standard.

Q2. What is the ultimate objective of data organization?

Ans. The ultimate objective of data organization is to organize data so that it can be found,
used, and extracted easily and quickly. Successful data organization means that less time and
resources are put into use to get the data as and when required.

Q3. For whom is data organization necessary?

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Ans. Everyone dealing with data needs data organization. People who need data organization
include economists, market researchers, scientists, corporate members, etc.

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