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Exercises · Q1

Q.Distinguish between primary data and secondary data, giving one example of each.

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Primary data is data collected afresh, for the first time, by the investigator specifically for the enquiry in hand — 'first-hand' or original data. It fits the enquiry exactly and its accuracy is known, but it is costly, slow and needs more effort. Example: a firm sending its own field staff to survey 500 households about grocery spending for a study it is itself conducting.

Secondary data is data already collected by someone else, for an earlier purpose, and now re-used — 'second-hand' data. It is cheaper and quicker but must be checked for suitability and reliability before use. Example: the same firm instead taking household-expenditure figures from a published government report.

BasisPrimary dataSecondary data
MeaningCollected afresh for this enquiryAlready collected by others, re-used
OriginalityFirst-hand (original)Second-hand
Cost & timeHighLow
ReliabilityKnown; generally more reliableMust be checked before use

Relative nature: the same figures are primary for whoever first collects them and secondary for anyone who later re-uses them.

✓Final answer

Primary data is original, first-hand data collected by the investigator specifically for the present enquiry (costly but accurate) — e.g. a firm's own household expenditure survey. Secondary data is second-hand data collected earlier by others for another purpose and re-used (cheap but needing suitability/reliability checks) — e.g. figures taken from a published government report.

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