Test: Collection of Data - 1 - Commerce MCQ

A cover letter accompanies or transmits another document such as a survey questionnaire. Its purpose is to alert the respondent about the questionnaire it accompanies and to provide the details of requested actions on the part of the respondent. A cover letter is a living document that often accompanies a resume.

Primary data is the correct answer.

- Definition: Primary data is information collected directly from the original source for a specific research purpose.
- Characteristics: It is raw, fresh, and unique to the study, gathered through surveys, interviews, or experiments.
- Benefits: Offers accuracy and relevance, tailored to the researcher's specific needs.
- Comparison: Unlike secondary data, which is pre-existing and collected by others, primary data is firsthand and original.

- A representative sample is designed to accurately reflect the characteristics of the larger population.
- It includes key demographics and variables in the same proportion as found in the whole population.
- This type of sample allows researchers to make reliable inferences about the population.
- It ensures that the sample is unbiased and that findings can be generalized.
- By using a representative sample, researchers save time and resources while still obtaining valid results.

- Statistics is the correct answer because it involves collecting, analyzing, interpreting, and presenting data.
- It helps economists understand economic phenomena by providing tools to analyze trends, test hypotheses, and make forecasts.
- Policymakers use statistical data to formulate decisions on issues like inflation, unemployment, and GDP growth.
- Econometrics, a branch of statistics, specifically applies these methods to economic data, offering insights for solving economic problems and crafting effective policies.

- Compensating errors are errors that occur in one direction and are balanced out by errors in the opposite direction.
- They do not systematically skew results; instead, their effects cancel each other out over time.
- This characteristic makes them unbiased errors, as they do not consistently lead to overestimation or underestimation.
- These errors are random and can be reduced by increasing the number of observations, leading to more reliable results.

The correct option is Option C.

In stratified sampling, the population is divided into several homogeneous groups, known as "strata," based on specific characteristics (e.g., age, income, education). Then, samples are collected from each stratum to ensure that the sample accurately reflects the population's composition. This method helps in reducing sampling bias and increasing precision.

Non-response errors occur when the respondent refuses to respond or the person refuses to provide information.

The correct answer is:

b) Stratified sampling.

Explanation:

In stratified sampling, the population is divided into several homogeneous groups, known as "strata," based on specific characteristics (e.g., age, income, education). Then, samples are collected from each stratum to ensure that the sample accurately reflects the population's composition. This method helps in reducing sampling bias and increasing precision.

Primary data is data that is collected by a researcher from first-hand sources, using methods like surveys, interviews, or experiments. It is collected with the research project in mind, directly from primary sources.

Secondary data is the data that has already been collected through primary sources and made readily available for researchers to use for their own research. A researcher may have collected the data for a particular project, then made it available to be used by another researcher.
So it is a secondary  data.

A primary data source is an original data source, that is, one in which the data are collected firsthand by the researcher for a specific research purpose or project. Primary data collection is quite expensive and time consuming compared to secondary data collection. It is collected with the research project in mind, directly from primary sources.