Question

State whether the following statements are True or False

1) Collection of primary data is time consuming.

2) Secondary data is original.

3) Indirect information is useful for the inquiry of complex problems.

4) Questionnaire method is used to collect secondary data.

5) The lottery method is an example of random sampling.

6) Larger the size of samples, greater will be the accuracy.

Answer 1

1. This statement is true.
Explanation
The data collected by an investigator himself to carry out a specific research is known as primary data. Since primary data is collected by the investigator for the first time from the original source of information, it involves huge cost in terms of money, time and effort.

2. This statement is false.
Explanation
Secondary data is the one that has been already collected by someone else in the past and the investigator uses it as the objectives of the study. As the investigator does not collect the data in such a case, the secondary data cannot be said to be original.

3. This statement is true.
Explanation
Indirect information refers to collecting information from a third party. Such a method of collecting data specifically proves useful in complex situations where it is difficult to collect information directly from the respondent.

4. This statement is false.
Explanation
In the questionnaire method, the investigator prepares a questionnaire or schedule that comprises a list of relevant questions. The respondent’s answers are then recorded in these questionnaires. This is a method of collecting primary data as the information is collected directly from the households or the concerned people by the investigator.

5. This statement is true.
Explanation
In the lottery method, each item is given a unique number and these numbers are noted down on slips of paper. These slips are then mixed in a bowl and drawn at random. Based on the drawn numbers, items are taken as samples. Thus, in this method each item has an equal chance being selected in the sample. Hence, it is an example of random sampling.

6. This statement is true.
Explanation
Samples are representative items that are selected from the total population itself. As these samples represent the total population, an increase in the size of samples collected will increase the accuracy of data. This is also known as the law of inertia of large numbers according to which, a larger sample size leads to greater accuracy.