Page 18 - DECO504_STATISTICAL_METHODS_IN_ECONOMICS_ENGLISH

Statistical Methods in Economics

Notes Demerits of this Method: (i) Reliability of the information is questionable, (ii) Correspondent’s
personal bias may come in, (iii) Same information with different attitudes may look different,
(iv) Chances of errors are many, as the correspondents are not personally interested in the
problem.
(4) Schedules and Questionnaires Method: This method is usually used by private individuals,
research workers, non-official institutions and even the Government. In this method, a list of
questions is prepared and information is collected about the problem. This can be done by —
(a) distributing questionnaires to the persons knowing about the information.
(b) sending the information by post or e-mail to the people from whom information is to be
collected.
(c) using enumerators to send the questionnaire to the people, who also help them in filling
the questionnaire. This method is adopted when there is a possibility of language problem
or the respondent is illiterate or when there is probability of avoidance of answering by
the respondents.
Merits of this Method: (i) Wide area of investigation can be covered, (ii) The Method is simple
and cheap, (iii) Can be used with least expenses for geographically dispersed respondents, (iv)
Original data is collected, (v) Information is given by the respondents themselves, hence the
data is free from the bias of the investigation.
Demerits of this Method: (i) Possibility of no-response is quite high, (ii) This method can be
used successfully where the respondents are educated, (iii) Information given by the
respondents may be false, (iv) Clarification of the questions, supplementary and complimentary
questions etc. is not possible, hence the method is inflexible.
From the above, it is quite clear that none of the methods is free from one or the other drawback.
In fact, the method to be chosen depends upon the nature of investigation, object and scope of
enquiry, budget made for the purpose of data collection, degree of accuracy desired and the
time within which the data has to be collected.
Questionnaire Method Or Essentials of a Good Questionnaire

The questionnaire method is the method in which primary data is collected by distributing a list of
questions related to the probe to those who are supposed to have knowledge about the problem. In
this way, it can be said that, the success of the Statistical enquiry in this case depends, to a large
extent on the questionnaire.
Preparation of questionnaire is a highly specialised job. Although, there are no hard and fast set rules
to prepare a questionnaire. However, a few broad principles should be followed in order to have a
good questionnaire. They are:
1. The questionnaire should be started with a covering letter which should be written in a polite
language requesting the respondents to answer to the best of their knowledge. The letter should
emphasize the need and usefulness of the information that is being collected. The letter should
also ensure that the information obtained from them shall be strictly used only for the said
purpose and the information and name of the respondents shall be kept confidential.
The covering letter may also accompany some small gift etc. to create the acceptance among the
respondents so that there is a greater chance of getting a response. Moreover, the letter may
also give a promise, that if the respondents so desire, a copy of the results of the survey may be
sent to them. This would increase the credibility of the investigator/investigating institution.
2. The questionnaire should not be very long. Unnecessary details in the form of separate questions
must be avoided. Although, there is no hard and fast rule about what should be the number of
questions in a questionnaire. Much shall depend upon the problem undertaken. However,
efforts should be made to frame only relevant questions otherwise, the respondents feel bored
or feel answering them to be a waste of time, and correct information will be a casualty.

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