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CEC 3106:Economic Statistics I
Lecture two: Data collection methods
Abdiaziz Ahmed
Department of Economics and Development Studies
University of Nairobi
Email: abdiazizahmedy@gmail.com
Venue:LT 301
March 20th 2024
Abdiaziz Ahmed CEC 3106:Economic Statistics I Venue:LT 301March 20th 2024 1 / 13

Table of Contents
1 Content of Lecture two

Introduction
Primary Data collection Methods
Secondary Data Collection Methods

What is data collection?
In Statistics, data collection is a process of gathering information from

all the relevant sources to find a solution to the research problem.
It helps to evaluate the outcome of the problem.
Data can be classified into two types, namely primary data and
secondary data.
Depending on the type of data, the data collection method is divided
into two categories namely,
1 Primary Data Collection methods
2 Secondary Data Collection methods

Primary Data collection Methods
Primary data is data that you collect yourself using such methods as:
direct observation, surveys
Methods of collecting primary data
1 Questionnaires
2 Interviews
3 Observation
4 Secondary/Existing Data

Questionnaires
Questionnaires are a popular means of collecting data, but are

difficult to design and often require many rewrites before an
acceptable questionnaire is produced.
Advantages:
1 Can be used as a method in its own right or as a basis for interviewing
or a telephone survey
2 Can be posted, e-mailed or faxed.
3 Can cover a large number of people or organizations.
4 Wide geographic coverage.
5 Relatively cheap.
6 No prior arrangements are needed.
7 Avoids embarrassment on the part of the respondent.
8 Respondent can consider responses.
9 Possible anonymity of respondent.
10 No interviewer bias.

Questionnaires contd
Disadvantages:
1 Design problems.
2 Questions have to be relatively simple.
3 Historically low response rate (although inducements may help).
4 Time delay whilst waiting for responses to be returned.
5 Require a return deadline.
6 Several reminders may be required.
7 Assumes no literacy problems.
8 No control over who completes it.
9 Not possible to give assistance if required.
10 Problems with incomplete questionnaires.
11 Replies not spontaneous and independent of each other.
12 Respondent can read all questions beforehand and then decide whether
to complete or not.

Interviews
Interviewing is a technique that is primarily used to gain an
understanding of the underlying reasons and motivations for people’s
attitudes, preferences or behavior.
Interviews can be undertaken on a personal one-to-one basis or in a
group. They can be conducted at work, at home, in the street or in a
shopping centre, or some other agreed location.
Advantages:
1 Serious approach by respondent resulting in accurate information.
2 Good response rate.
3 Completed and immediate.
4 Possible in-depth questions
5 Interviewer in control and can give help if there is a problem.
6 Can investigate motives and feelings.
7 Can use recording equipment.
8 Characteristics of respondent assessed – tone of voice, facial
expression, hesitation, etc.
9 Can use props.
10 If one interviewer used, uniformity of approach
Interviews contd
Disadvantages:
1 Need to set up interviews.
2 Time consuming.
3 Geographic limitations.
4 Can be expensive
5 Normally need a set of questions.
6 Respondent bias – tendency to please or impress, create false personal
image, or end interview quickly.
7 Embarrassment possible if personal questions.
8 Transcription and analysis can present problems – subjectivity.
9 If many interviewers, training required.

Observation
In the method of data collection called observation, the researcher
observes participants in natural and/or structured environments.
It is important to collect observational data because what people say
is not always what they do!
Observation can be carried out in two types of environments:
1 Laboratory observation (which is done in a lab set up by the
researcher).
2 Naturalistic observation (which is done in real-world settings).
Advantages:
1 Provides firsthand experience, especially if the observer participates in
activities.
2 Can provide relatively objective measurement of behavior (especially for
standardized observations).
3 Observer can determine what does not occur.
4 Observer may see things that escape the awareness of people in the
setting.
5 Excellent way to discover what is occurring in a setting.
6 Helps in understanding importance of contextual factors.
Observation contd
Disadvantages:
1 Reasons for observed behavior may be unclear.
2 Reactive effects may occur when respondents know they are being
observed (e.g.,people being observed may behave in atypical ways).
3 Investigator effects (e.g., personal biases and selective perception of
observers)
4 Observer may “go native” (i.e., over-identifying with the group being
studied).
5 Cannot observe large or dispersed populations.
6 Sampling of observed people and settings may be limited.
7 Some settings and content of interest cannot be observed.
8 Collection of unimportant material may be moderately high.
9 More expensive to conduct than questionnaires and tests.
10 Data analysis can be time consuming.

What is secondary data?
Secondary data is data collected by someone other than the actual
user.
It means that the information is already available, and someone
analyses it.
The secondary data includes magazines, newspapers, books, journals,
etc.
It may be either published data or unpublished data.
Published data are available in various resources including
1 Government publications
2 Public records
3 Historical and statistical documents
4 Business documents
5 Technical and trade journals
Unpublished data includes
1 Diaries
2 Letters
3 Unpublished biographies, etc.
Advantages of secondary data
1 Cost-Effective: Using secondary data is often cheaper than collecting
primary data, as it eliminates the need for resources such as
personnel, equipment, and time.
2 Time-Saving: Since secondary data is readily available, researchers
can save time on data collection, allowing them to focus more on
data analysis and interpretation.
3 Large Sample Size: Secondary data sources often provide access to
large datasets, enabling researchers to analyze trends, patterns, and
correlations with higher statistical power.
4 Large Sample Size: Secondary data sources often provide access to
large datasets, enabling researchers to analyze trends, patterns, and
correlations with higher statistical power.
5 Diverse Sources: Researchers can access a wide range of secondary
data sources, including government databases, academic journals,
industry reports, and surveys, enhancing the depth and breadth of
research possibilities.
Disadvantages of secondary data
1 Quality Concerns: The quality of secondary data may vary, and
researchers must assess the reliability, accuracy, and completeness of
the data before using it for analysis.
2 Limited Control: Researchers have limited control over the collection
and formatting of secondary data, which may lead to inconsistencies
or gaps in the data.
3 Contextual Constraints: Secondary data may lack contextual
information specific to the research question, requiring researchers to
make assumptions or adjustments during analysis.
4 Outdated Information: Some secondary data sources may contain
outdated information, especially in rapidly evolving fields, which can
affect the relevance and validity of research findings.
5 Data Availability: Not all desired variables or data points may be
available in secondary data sources, limiting the scope or depth of
analysis for certain research questions.

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CEC 3106:Economic Statistics I

Lecture two: Data collection methods

Abdiaziz Ahmed CEC 3106:Economic Statistics I Venue:LT 301March 20th 2024 1 / 13

1 Content of Lecture two

Abdiaziz Ahmed CEC 3106:Economic Statistics I Venue:LT 301March 20th 2024 2 / 13

In Statistics, data collection is a process of gathering information from

Abdiaziz Ahmed CEC 3106:Economic Statistics I Venue:LT 301March 20th 2024 3 / 13

Abdiaziz Ahmed CEC 3106:Economic Statistics I Venue:LT 301March 20th 2024 4 / 13

Questionnaires are a popular means of collecting data, but are

Abdiaziz Ahmed CEC 3106:Economic Statistics I Venue:LT 301March 20th 2024 5 / 13

Abdiaziz Ahmed CEC 3106:Economic Statistics I Venue:LT 301March 20th 2024 6 / 13

Abdiaziz Ahmed CEC 3106:Economic Statistics I Venue:LT 301March 20th 2024 8 / 13

Abdiaziz Ahmed CEC 3106:Economic Statistics I Venue:LT 301March 20th 2024 10 / 13

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