SS1 LESSON 3

                         

TOOLS FOR ECONOMIC ANALYSIS       

Economics uses tools like table, charts, graphs, statistical tools etc. to assume and analyze the patterns of human behavior.

1.   TABLE

This is a list of facts or numbers arranged in special order usually in rows and columns.

Features of Table

1.   It is very neat, simple to prepare and easy to understand

2.   Has rows and columns

3.   Shows relationship between variables

4.   Rows and Columns has titles

Importance of Table

1.   It is very useful for comparison of data

2.   Data are properly arranged

3.   Easy to understand  which makes for quick decision making

4.    Shows complete summary of data

2.  CHARTS

This tool presents data in diagrams and pictures.

Types of Charts

1.   Bar charts

2.   Pie charts

3.   Histogram

4.   Pictogram

1.  Bar Chart

This tool shows quantities of data in the form of bars. These bars have same width and separated by equal gaps.

Types of bar charts

1.   Simple bar chart:

This bar chart is used when data involves only one category.

        JS3        SS1      SS2    SS3

Exercise:

The following are the loans granted by a commercial bank to different categories of individuals. Use the information to answer the                 question that follows.

                    Bakers               $8,000

                    Farmers             $8,000

                    Miners               $7,000

                    Retailers            $5,000

                    Tailors               $4,000

                    Teachers           $6,000

                    Drivers              $4,000

                    Fishermen          $3,000

1.   Arrange the information in the form of a table grouping them into:       a) Primary sector

                    b) Secondary Sector

                    c) Tertiary Sector

2. Present the total Loan granted to the sectors in a simple bar       chart.

2.   Component Bar Chart:

These charts are used to represent data involving two categories.

Example:

The production of carrot and onion by a farmer in Jos for the years 2001-2004

Year	Carrot	Onion	Total
2001	40	30	70
2002	30	20	50
2003	30	40	70
2004	20	40	60

Represent this data using component bar chart

3.   Multiple bar chart:

This is also called compound bar chart. Here, two or more bars are used to represent data with up to 3 categories.

Example:

The output of 3 products for the year 2008 to 2010

Products	2008	2009	2010
X	4	3	1
Y	5	2	2
Z	7	8	3

2.  PIE CHARTS

This is a 360⁰ circle divided into sectors whose angles are proportional to the frequencies of the items, and are represented in percentage or degrees.

Examples will be treated in the class.

MEASURES OF CENTRAL TENDENCY

1.   Mean

2.   Median

3.   Mode

1.  Mean:

This is the average of variable obtained in a study. It is the sum of all data divided by their frequency.

2.  Median:

This is a middle item of an array of data. It is a position average. If a set of number is arranged in order of size, the middle item is the median.

3.  The mode:

This is the most frequently occurring data in a set. The number with the highest frequency is the mode.

(Calculations will be given in the class)

MEASURES OF DISPERSION

1.   Range: The difference between the extreme figures in a set of data.

2.   Quartile

3.   Variance

4.   Standard deviation

(explanations and illustrations will be given in the class)