Solutions to Assignments
MBA and MBA (Banking & Finance)
MMPC-005: Quantitative Analysis for Managerial Applications
MMPC-005/TMA/JULY/2022
Question No. 3. What do you understand by Primary Data? What are the various methods of collecting primary data? Also, mention what points to be kept in mind while designing the questionnaire?
Data used in statistical study is termed either “Primary” or “secondary”
depending upon whether it was collected specifically for the study in
question or for some other purpose. When the data used in a statistical study was collected under the control and supervision of the investigation, such
type of data is referred to as “Primary data”. When the data was not collected
by the investigator, but is derived from other sources then such data is
referred to as “secondary data”.
The difference between primary and secondary data is only in terms of
degree. For example, data which is primary in the hands of one become
secondary in the hands of another. Suppose in investigator wants to study the
working conditions of labour in a big industrial concerned. If he collects the
data himself or through his agent, then this data is referred to as primary data.
But if this data is used by someone else, then this data becomes secondary
data.
METHOD OF COLLECTING PRIMARY
DATA
Primary data may either be collected through the observation method or
through the questionnaire method.
In the observation, the investigator asks no questions, but he simply observes
the phenomenon under consideration, and records the necessary data.
Sometimes individuals make the observation; on other occasion, mechanical
and electronic devices do the job.
In the observation method, it may be difficult to produce accurate data.
Physical difficulties on the part of the observer may result in errors. Because
of these limitations in the observation method, the questionnaire method is
most widely used for collecting data. In the questionnaire method, the
investigator draws up a questionnaire containing all the relevant questions
which he wants to ask from his respondents, and accordingly records the
responses. Questionnaire method may be conducted through personal
interview, or by mail or telephone.
Personal Interviews In this method the interviewer sits face-to-face with the
respondent and records his responses. In this method, the information is
likely to be more accurate and reliable because the interviewer can clear up
doubts and cross-checks the respondents. This method is time consuming
and can be very costly if the number of respondents is large and widely
distributed.
Mail Questionnaire In this method a list of questions (questionnaire) is
prepare and mailed to the respondents. The respondents are expected to fill in
the questionnaire and send it back to the investigator. Sometimes, mail
questionnaire are placed in respondents’ hands through other means such as
attaching them to consumers’ products or putting them in newspapers or
magazines. This method can be easily adopted where the field of
investigation is very vast and the respondents are spread over a wise
geographical area. But this method can be adopted only where the
respondents are literate and can understand written question and answer
them.
Telephone In this method the investigator asks the relevant questions from
the respondents over the telephone. This method is less expensive but it has
limited application since only those respondents can be interviewed who have
telephones; moreover, very few questions can be asked on telephone
The questionnaire method is a very efficient and fast method of collecting
data. But it has a very serious limitation as it may be extremely difficult to
collect data on certain sensitive aspects such as income, age or personal life
details, which the respondent may not be willing to share with the
investigator. This is so with other methods also different people may interpret
the questions differently and consequently there may be errors and
inaccuracies in data collection.
DESIGNING OF QUESTIONNAIRE
The success of collecting data through a questionnaire depends mainly on
how skillfully and imaginatively the questionnaire has been designed. A
badly designed questionnaire will never be able to gather the relevant data. In
designing the questionnaire, some of the important points to be kept in mind
are:
1. Covering letter : Every questionnaire should be contain a covering letter.
The covering letter should highlight the purpose of study and assure the
respondent the all responses will be kept confidential. It is desirable that
some inducement or motivation is provided to the respondent for better
response. The objectives of the study and questionnaire design should be
such that the respondent derives a sense of satisfaction through his
involvement.
2. Number of questions should be kept to the minimum: The fewer the
question, the greater the chances of getting a better responses and having all
the questions answered. Otherwise the respondent may feel disinterested and
provide inaccurate answers particularly towards the end of the questionnaire.
Informing the question, the investigator has to take into consideration several
factors such as the purpose of study, the time and resources available. As a
rough indication, the number of questions should be between 15 to 40. In
case the number of questions is more than 25, it is desirable that the
questionnaire be divided into various part to ensure clarity.
3. Questions should be simple, short and unambiguous: The questions
should be simple, short, easy to understand and such that their answers are
unambiguous. For example, if the question is ‘Are you literate? The
respondent may have doubts about the meaning of literacy. To some literacy
may mean a university degree whereas to others even the capacity to read and
write may mean literacy. Hence it is desirable to specify whether you have
passed (a) high school (b) graduation (c) post graduation etc. Questions can
be of Yes/No type, or of multiple choice depending on the requirement o the
investigator. Open-ended questions should generally be avoided.
4. Questions of sensitive or personal nature should be avoided: The
questions should not be such as would require the respondent to disclose any
private, personal or confidential information. For example, questions relating
to sales, profits, material happiness etc. should be avoided as far as possible.
If such questions are necessary in the survey, an assurance should be given to
the respondent that the information provided shall be kept strictly
confidential and shall not be used at any cost to their disadvantage.
5. Answers to questions should not require calculations: The questions
should be framed in such a way that their answers do not require any
calculations.
6. Logical arrangement Collection of Data The questions should be logically arranged so that
there is a continuity of responses and the respondent does not feel the need to
refer back to the previous questions. It is desirable that the questionnaire
should begin with some introductory questions followed by vital questions
crucial to he survey and ending with some light questions so that the overall
impression of the respondent is a happy one.
7. Cross-check and Footnotes: The questionnaire should contain some such
questions which act as a cross-check to the reliability of the information
provided. For example, when a question relating to income is asked, it is
desirable to include a question : “are you an income tax assessee?”
For the purpose of clarity, certain questions which might create a doubt in the
mind of respondents, it is desirable to give footnotes. The purpose of
footnotes is to clarify all possible doubts which may emerge from the
questions and cannot be removed while answer them. For example, if a
question relates to income limit like 1000-2000, 2000—3000; etc., a person
getting exactly Rs. 2,000 should know in which income class he has to place
himself.
