Page 26 - DECO504_STATISTICAL_METHODS_IN_ECONOMICS_ENGLISH

Statistical Methods in Economics

Notes
2004 21,800
2005 22,200
2006 23,000
2007 25,200
2008 24,600
2009 26,000
On the basis of the above, it may be concluded that depending upon the nature of data, and
requirement of the investigation and objectives of study, classification of data facilitates the
investigator to compare, analyse and interpret the data, thus helping in using the data
scientifically.
3.2 Tabulation of Data

The process of presenting data in the tabular form is termed as tabulation. As per L. R. Connor,
“Tabulation involves the orderly and systematic presentation of numerical data in a form designed
to elucidate the problem under consideration.

Importance of Tabulation
(1) Simplifies the complex data: The process of tabulation eliminates unnecessary details and
present the complex data concisely in rows and columns. This helps in simplifying the complex
data which becomes more meaningful and better understood.
(2) Presents facts in minimum space: A large number of facts can be condensed in one table in a
much better way than otherwise.
(3) Facilitates comparison: Data when depicted in rows and columns, facilitates comparison, and
the problem can be better understood.
(4) Depicts data characteristics: The important characteristics of data are brought about by the
process of tabulation as it is presented concisely but clearly.
(5) Depicts trends and pattern of data: Data, in the form of tables, helps in understanding the
trends and patterns lying within the figures without much effort. This facilitates better
understanding of the problem under study.
(6) Helps in making references: Data can be stored perfectly in the form of tables which can be
easily identified by its head and footnotes. This can be used for future studies.
(7) Facilitates statistical analysis: It is only possible after tabulation, that the data can be subjected
to statistical analysis and interpretation. Measures of correlation, regression dispersion etc can
be easily calculated when the data is in tabular form.
The above points form the advantages of tabulations to the investigator and investigation as
well.
Limitations of Tabulation

Although tabulation is an essential activity in the process of statistical analysis, it is not absolutely
free of limitations. The limitations are:
(1) A table does not present any description about the figures expressed. For those who are not
familiar, it is not easy to understand facts with the help of tables.
(2) Specialised knowledge is essential to understand a table. It is not a layman’s cup of tea.
(3) A table does not lay emphasis on any section of particular importance.
It is because of these limitations that tables are only complementary to textual report. A table
only accompanies a text, facilitating better understanding in a concise way.

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