Unit 3.3
Unit 3.3
MODULE – 3
IT and Presenting
Information
MODULE
Unit 3.1
Unit 3.2
Unit 3.3
Learning Objectives
Learning Outcome
The data collection starts once a problem has been identified and defined. When
deciding about the methods of collecting data to be used for the concerned study, the
person involved should keep in mind two categories of data – primary data as well
as secondary data. The primary data refers to those which are collected afresh and
for the first time and hence happen to be original in character. The secondary data
refers to those which have already been collected by someone else and which have
been passed out through the statistical process. There is a need on the part of the
person concerned to collect data is that a decision regarding what sort of data should
be collected for the study and based on which he or she needs to select the one best
method of collecting data from among other methods of collecting data. There exist
differences in the methods of collecting primary as well as secondary data as
primary data are to be originally collected, where as in the case of secondary data,
the nature of the data collection is that of compilation.
This unit discusses in detail about data collection, questionnaire as one of the data
collection methods, different methods of correlation, regression, different types of
interviews and the use of historical data in business.
Data serve as a bases (or) raw material for analysis and they form the basis for
testing the hypothesis formulated in a study. In a research, if data are available, the
research is half complete.
The most important objective of the data collection is to ensure that the information
rich and reliable data is being collected for statistical analysis in order to have data
driven decisions to be made for the research.
Collection of data is the process of enumeration together with the proper recording
of results. It is an organised enquiry designed and carried out to provide information
for solving problem.
Fig 3.3.1: Primary Data
• Data can be collected from primary and
secondary sources.
• Primary data refers to information obtained first
hand by the researcher on the variable of interest
for the specific purpose of the study.
• Secondary data refer to information gathered
from already existing sources like review of literature from internal sources
and external sources.
o Internal Data can be sales data, Product data, Customer data, Time
data, accounting records and Invoice records.
o External Data can be obtained from Libraries from books, business
information magazines, Business periodicals published fortnightly,
monthly, quarterly, semi-annually and annually.
o Periodicals abstracts on economics, finance, trade, transport, industry,
labour and management prepared from government and
non-government agencies.
Different types of data are available and that can be useful in different scenarios.
Sometimes, it can also be much helpful to use various types of data together.
Hence it is to be noted that collecting high quality data becomes the foundation for
the success of any business for this matter. These are some of the uses of collecting
data. The list of uses is not an exhaustive list. Apart from the above stated uses,
there are many other uses of data collection.
2. Online Tracking
The firm’s app as well as its website becomes the excellent tools for collecting
the data from the customers and about the customers’ data. If a person visits
the website, then it gets counted. The website hosting provider collects such
kind of information by using analytics software. This provides valuable
information about the customers and based on which important decisions can
be made by the firm.
3.3.2 Questionnaires
r= Ʃ(X-X)(Y-Y)
Ʃ(X-X )2 (Y-Y )2
Where,
R = Rank coefficient or correlation
D = Difference of ranks
N = Number of observations
3.3.4 Regression
It is the basic and widely used type of predictive analysis. From two different
perspectives, the idea of regression can be understood,
• Does a set of predictor variables: do a good job in the task of predicting an
outcome / dependent variable?
• Which variables are in particular significant predictors of the outcome
variable and in what way do they indicate by the magnitude and sign of the
beta estimates?
Types of Regression
Fig 3.3.4: Types of Regression
There are many types of regression. Of
which two types of regression analysis are
widely talked about.
• Simple Regression
Simple regression involves one interval
scaled or ratio scaled dependent
variable and one interval scaled or ratio scaled or dichotomous independent
variable.
• Multiple Regressions
Whereas multiple regressions involve one interval scaled or ratio scaled
dependent variable and two or more interval scaled or ratio scaled or
dichotomous independent variables.
3.3.5 Interviews
Historical data refers to the collected data about the past events and circumstances
relating to a particular event or subject. It includes most data that are generated
either automatically or manually within an organisation.
Past data or information about a firm is used by people to forecast the firm’s future.
For example, historical price, ration, price per earnings, revenues, revenue growth,
etc.
For example, if an investor is tensed about investing in a firm, he or she can look at
and assess the historical data in order to become very familiar with the firm’s
business practices, success history, failures as well as financial stability.
There are sources available from which historical data can be collected. Such
sources may include press releases, financial reports, log files, project documents,
product documents, email communication and such other sources.
It is to be considered that not all the historical data is old and most of it is retained
for a longer period of time. As the storage capability of the firms has increased
predominantly nowadays, cloud storage has taken some of the load of the storage
administration from many organisations. Firms collecting more data than ever and
are storing it for a longer period of time for their own purpose and also to satisfy
other requirements.
3.3.7 Conclusion
This unit discusses about the concept of data collection, methods of data collection –
questionnaires, interviews, methods of correlation and regression; and the use of
historical data in detail. Questionnaires are the powerful and widely used
instrument to collect data. Personal interviews and telephone / online interviews are
the two broad categories of interviews that are generally used by the researcher.
There are different methods of correlation and regression that are used to
communicate a message to the people concerned. The historical data is useful in
making certain important decisions.
Summary
Activity
1. What are the different methods of data collection used by business firms?
2. What are the main statistical measures that help the to analyse the collected
data?
1. What are the different methods of data collection used by business firms?
• Interviews
• Questionnaires and surveys
• Observations
• Documents and records
• Focus groups
• Oral histories
2. What are the main statistical measures that help the firms to analyse the
collected data?
• Correlation
• Regression
Bibliography
E-References
External Resources
• https://www.lotame.com/what-are-the-methods-of-data-collection/
• https://www.questionpro.com/blog/data-collection/
• https://businessjargons.com/methods-of-determining-correlation.html
• http://www.investorwords.com/2317/historical_data.html#ixzz6U0w0dBA6
• https://whatis.techtarget.com/definition/historical-data#:~:text=By%20definitio
n%2C%20historical%20data%20includes,and%20email%20and%20other%20c
ommunications.