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Economics · Class 11 Commerce

Ch 13Organisation of Data — Class 11 Economics, concept-first.

Once data have been collected — whether by census or by sampling — the next step is to organise them. Freshly gathered data are usually raw: disorganised, often very large, and cumbersome to handle.

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Key concepts

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Class Midpoint Definition Bivariate Distribution Grouped Data Assumptions

Imagine you're a market researcher studying how much people spend on groceries each month. You ask 100 households, and you get 100 different numbers — ₹2,300, ₹4,150, ₹3,700, and so on. That raw list is a mess.

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Chapter contents

The NCERT structure, section by section. Open a section to see its questions, then read the concept-first solution.

3.1

Introduction

Once data have been collected — whether by census or by sampling — the next step is to organise them. Freshly gathered data are usually raw: disorganised, often very large, and cumbersome to handle.

3.2

Raw Data

Data as first collected are raw or unclassified — disorganised, usually bulky, and awkward to work with.

3.3

Classification of Data

Raw data can be grouped in several ways, and the choice depends on the purpose — just as books could be classified subject-wise, author-wise (alphabetically) or by year of publication.

3.4

Variables: Continuous and Discrete

A variable can be measured, but variables differ in how they vary. On this basis they fall into two types.

3.5

What is a Frequency Distribution?

A frequency distribution is a full way of classifying the raw data of a quantitative variable. It shows how the different values of the variable are spread across several classes, together with each c…

3.5.1

How to Prepare a Frequency Distribution?

Building a frequency distribution from raw data comes down to answering five questions, each taken up in turn in the sub-sections that follow:

3.5.2

Should We Have Equal or Unequal Sized Class Intervals?

Class intervals are usually kept equal, but unequal intervals are the better choice in two situations.

3.5.3

How Many Classes Should We Have?

The number of classes is normally kept between six and fifteen — few enough to summarise, many enough to preserve detail.

3.5.4

What Should Be the Size of Each Class?

The size of each class and the number of classes are two sides of the same decision — neither can be fixed without the other.

3.5.5

How Should We Determine the Class Limits?

Class limits must be definite and clearly stated. Open-ended classes such as "70 and over" or "less than 10" are generally avoided.

3.5.6

Examples

Take marks in a test recorded only as whole numbers (no fractional marks), ranging from 0 to 100 — a discrete variable.

3.5.7

Example of Continuous Variable

For a continuous variable such as height (cm) or weight (kg), the inclusive-looking classes are understood to stretch right up to — but not including — the next lower limit.

3.5.8

Adjustment in Class Interval

When a continuous variable is classified by the inclusive method, as in Table 3.4 above, the classes leave visible gaps.

3.5.9

How Should We Get the Frequency for Each Class?

Frequency of a value is simply how many times it appears in the raw data. In the 100 mathematics marks, 40 occurs 3 times, 0 occurs once, 10 occurs once, 49 occurs 5 times, and so on — so the frequenc…

3.5.10

Finding Class Frequency by Tally Marking

Tally marking is the practical way to count how many observations fall in each class. Go through the raw data one value at a time and place a stroke ( / ) against the class it belongs to: a mark of 57…

3.5.11

Loss of Information

Grouping raw data into a frequency distribution has one built-in drawback: a loss of information. The table is concise and easy to read, but the individual observations disappear.

3.5.12

Frequency Distribution with Unequal Classes

Equal class intervals are not always best. In the mathematics-marks distribution most observations pile into just three classes — 40–50, 50–60 and 60–70, with frequencies 21, 23 and 19.

3.5.13

Frequency Array

Everything so far grouped a continuous variable into class intervals. For a discrete variable the corresponding arrangement is a frequency array.

3.6

Bivariate Frequency Distribution

Everything so far dealt with one variable at a time (a univariate distribution). But a sample often records two pieces of information per unit — for example, from 20 firms both their sales and their a…

3.7

Conclusion

Data from primary and secondary sources arrive raw and unclassified, so the step after collection is to classify them for analysis — because classification brings order to what is otherwise unmanageab…

Exercises