ASSIGNMENT 1: ECONOMETRICS TYPES OF DATA WITH EXAMPLES 1) Ordinal Numbers: A set of data is said to be ordinal if the values / observations

belonging to it can be ranked (put in order) or have a rating scale attached. You can count and order, but not measure, ordinal data. Examples: suppose a group of people were asked to taste varieties of biscuit and classify each biscuit on a rating scale of 1 to 5, representing strongly dislike, dislike, neutral, like, strongly like. 2) Cardinal Numbers: A Cardinal Number is a number that says how many of something there are, such as one, two, three, four, five. Answers the question of how many.

3) Nominal Numbers: A nominal number is number used for identification only, such as a telephone number. The numerical value of this number is irrelevant as it does not indicate quantity, rank or any other measurement. Nominal numbers are sometimes called categorical numbers.

Example: Males can be coded as 1 and Females as 0, or Married can be coded as 1 and being single as 0.

4) Cross Sectional Data: Cross-sectional data refers to data collected by observing many subjects (such as individuals, firms or countries/regions) at the same point of time, or

without regard to differences in time. Analysis of cross-sectional data usually consists of comparing the differences among the subjects. Example: A study of 100 people to check obesity in an area of a town if the set is randomly chosen would be cross sectional data: S. No. 1. 2. 3. 4. 5. 6. Gregory Shaun Masey Nolene Sultan Ashley 100. Rishi 22 23 19 21 28 29 27 173 165 156 169 188 166 165 85 66 55 67 88 69 77 Name Age Height (in cms) Weight (in kgs)

5) Time Series Data: A time series is a sequence of data points, measured typically at successive points in time spaced at uniform time intervals. Time series analysis comprises methods for analyzing time series data in order to extract meaningful statistics and other characteristics of the data.

Example: Measuring the unemployment rate of a Country X during the year 2011:

Month January February March April May June July August September October November December

Rate of Unemployment (%) 10 12 10 11.5 10.4 12.5 12.7 12.9 13 11.9 11.4 11.2

6) Pooled Cross Section Data: Randomly sampled cross sections of individuals at different points of time. Example: Data has been collected from 50 random people over a period of 2 years to check the education level. Collected in January 2012 Name Sanatan Jonathan Age 21 18 Education Bachelors 12th

Christy Angie Lily Jeff Harsh

32 29 43 22 31

Bachelors Bachelors Masters Bachelors Masters

Collected in February 2012 Name Archit Lalita Arcel Emmanuel Javed Kunal Azhar Age 19 27 26 25 54 21 41 Education 12th Bachelors Bachelors Masters Masters Bachelors Masters

7) Panel Data: Panel data refers to multi-dimensional data frequently involving measurements over time. Panel data contain observations of multiple phenomena obtained over multiple time periods for the same firms or individuals.

Example: Data has been collected for a group of 4 people across 3 years for Income, Age.

Person

Year

Income (in Rs. 000s)

Age (in Years)

Sex

1 1 1 2 2 2 3 3 3 4 4 4

2010 2011 2012 2010 2011 2012 2010 2011 2012 2010 2011 2012

12 12.5 13.5 22 24 25.5 28 29.5 32 44 46 47

23 24 25 21 22 23 25 26 27 25 26 27

1 1 1 1 1 1 2 2 2 2 2 2

ASSIGMENT 1: ECONOMETRICS TYPES OF DATA AND EXAMPLES

Submitted by: Geetika Puri