CHAPTER

12 Introduction to Statistical
Methods and Econometrics

“Statistics is the grammar of science.”

- Karl Pearson

Learning Objectives

1 To describe some statistical techniques that may be useful to analyze

economic issues.

2 To give a brief introduction to the subject of econometrics and its

applications

12.1
Etymology and Milestones of Father of statistics
Statistics in Global Level The fundamental
principles of statistics
The term statistics originated in the were developed by
West and was known by various names, the biologist, Ronald
such as ‘status’ in Latin, ‘statistik’ in fisher who lived in
German, ‘statisque’ in French. It is said England during the
that Gottfried Achenwall used the word last century. His
Ronald Fisher
‘statistik’ in 1749 to describe the political studies in statistics
science of different countries. All these led to the synthesis of evolution and
names in short mean to describe the modern genetics.
political state.

The first book to have statistics as its The monumental contribution to

title was ‘Contributions to vital Statistics’ the subject of statistics can be attributed
by Francis GP Neison in 1845. It was to to R.A. Fisher (1890-1962) who was able
prepare a systematic study of birth and to apply statistics to a variety of fields
death related data. such as Biometry, Genetics, Psychology,
Education, Agriculture and others.

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 Besides he is also known as the pioneer form it denotes collection of numerical
of estimation theory, analysis of variance, figures and facts. In the narrow sense it
and design of experiments. Hence he is has been defined as the science of counting
known as the father of Statistics. and science of averages.
12.2
Definitions of Statistics
Evolution of Statistics in India
Statistics as a science of estimates
and probabilities
Evidence
- Boddington
from history
proves that during Statistics may be defined as the
the reign of collection, organisation, presentation,
Chandra Gupta analysis and interpretation of numerical
Maurya, there data
existed a system - Croxton & Cowden
of maintaining
vital statistics, 12.4
Prof. P.C.Mahalanobis i n c l u d i n g Characteristics and Functions of
registration of Statistics
births and deaths. Such records can be
found in Kautilya’s Arthashastra even
i) Statistics are an aggregate of facts.
before 300B.C. The book “Ain-e-Akbari”
For example, numbers in a calendar
(1596-97) mentions the statistical and
pertaining to a year will not be called
administrative surveys conducted during
statistics, but to be included in statistics
Akbar’s rule. P.C.Mahalanobis is known as
it should contain a series of figures with
the founder of modern statistics and also
relationships for a prolonged period.
as father of Statistics in India. Since 2007
29th of June every year is celebrated as ii) Statistics are numerically enumerated,
Statistics Day to commemorate his birth estimated and expressed.
anniversary.
iii) Statistical collection should be
12.3 systematic with a predetermined
purpose: The purpose of collection
Definitions of Statistics
of statistics should be determined
beforehand in order to get accurate
The term ‘Statistics’ is used in two information.
senses: as singular and plural. In singular
form it simply means statistical methods. iv) Should be capable of being used as a
Statistics when used in singular form technique for drawing comparison:
helps in the collection, presentation, It should be capable of drawing
classification and interpretation of data to comparison between two different sets
make it easily comprehensible. In its plural of data by tools such as averages, ratios,
rates, coefficients etc.
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 Statistics and Firms
Functions of Statistics
 Statistics presents facts in a definite Statistics is widely used in many firms
form. to find whether the product is conforming
to specifications or not.
 It simplifies mass of figures.
 It facilitates comparison. Statistics and Commerce
 It helps in formulating and testing. Statistics are life blood of successful
 It helps in prediction. commerce. Market survey plays an
important role to exhibit the present
 It helps in the formulation of suitable
conditions and to forecast the likely
policies.
changes in future.

12.5 Statistics and Education

Nature of Statistics Statistics is necessary for the

formulation of policies to start new course,
Different Statisticians and according to the changing environment.
Economists differ in views about the There are many educational institutions
nature of statistics, some call it a science owned by public and private engaged in
and some say it is an art. research and development work to test the
past knowledge and evolve new knowledge.
Tipett on the other hand considers These are possible only through statistics.
Statistics both as a science as well as an
art. Statistics and Planning:

12.6 Statistics is indispensable in planning.

In the modern world, which can be termed
Scope of Statistics as the “world of planning”, almost all
the organisations in the government are
Statistics is applied in every sphere of seeking the help of planning for efficient
human activity – social as well as physical working, for the formulation of policy
– like Biology, Commerce, Education, decisions and execution of the same. In
Planning, Business Management, order to achieve the above goals, various
Information Technology, etc. advanced statistical techniques are used
for processing, analyzing and interpreting
Statistics and Economics data. In India, statistics play an important
Statistical data and techniques role in planning, both at the central and
are immensely useful in solving many state government levels, but the quality of
economic problems such as fluctuation in data highly unscientific.
wages, prices, production, distribution of
income and wealth and so on.

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 Statistics and Medicine It is well known that mathematical and
physical sciences are exact. But statistical
In Medical sciences, statistical
laws are not exact and statistical laws
tools are widely used. In order to test the
are only approximations. Statistical
efficiency of a new drug or to compare the
conclusions are not universally true. They
efficiency of two drugs or two medicines,
are true only on an average.
t - test for the two samples is used. More
and more applications of statistics are at
3. Statistics table may be misused:
present used in clinical investigation.
Statistics must be used only by experts;
Statistics and Modern applications otherwise, statistical methods are the
most dangerous tools on the hands of the
Recent developments in the fields inexpert. The use of statistical tools by
of computer and information technology the inexperienced and untrained persons
have enabled statistics to integrate their might lead to wrong conclusions.
models and thus make statistics a part
of decision making procedures of many 4. Statistics is only one of the
organisations. There are many software methods of studying a problem: Statistical
packages available for solving simulation method does not provide complete
problems. solution of the problems because problems
are to be studied taking the background
12.7
of the countries culture, philosophy,
Limitations of statistics religion etc., into consideration. Thus the
statistical study should be supplemented
Statistics with all its wide application by other evidences.
in every sphere of human activity has its 12.8
own limitations. Some of them are given Types of Statistics
below.
There are two major types of
1. Statistics is not suitable to the statistics named as Descriptive Statistics
study of qualitative phenomenon: and Inferential Statistics.
Since statistics is basically a science and
deals with a set of numerical data. It is Descriptive Statistics
applicable to the study of quantitative The branch of statistics devoted to
measurements. As a matter of fact, the summarization and description of
qualitative aspects like empowerment, data is called Descriptive Statistics
leadership, honesty, poverty, intelligence
Inferential Statistics
etc., cannot be expressed numerically
and statistical analysis cannot be directly The branch of statistics concerned
applied on these qualitative phenomena. with using sample data to make an
inference about a population of data is
2. Statistical laws are not exact: called Inferential Statistics.

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 Descriptive
Statistics
Statistics
Inferential
Type of Statistics Statistics

Major differences between Descriptive Statistics and Inferential Statistics

S.No Descriptive statistics Inferential statistics

1. It describes the population under study. It draws conclusion for the population
based on the sample result.
2. It presents the data in a meaningful way It uses hypotheses, testing and
through charts, diagrams, graphs, other predicting on the basis of the outcome.
than describing in words.
3. It gives the summary of data. It tries to understand the population
beyond the sample.
12.9 A characteristic is qualitative in nature
Data when its observations are defined
and noted in terms of the presence or
Data is the information about facts absence of a certain attribute in discrete
or numbers collected to be examined and numbers. These data are further
used to help with decisions. Data are the classified as nominal and rank data. Eg.
basic raw materials of statistics. Gender, Community, honesty…

In statistics, data are classified into (i) Nominal data are the outcome
two broad categories: 1.Quantitative data of classification into two or more
and Qualitative data. categories of items or units comprising
a sample or a population according
1. Quantitative data are those that to some quality characteristic.
can be quantified in definite units Classification of students according
of measurement. These refer to to their sex (as males and females),
characteristics whose successive Workers according to their skill (as
measurements yield quantifiable skilled, semi-skilled, and unskilled),
observations. Eg. Age, income, number and of employees according to their
of firms etc level of education (as matriculates,
undergraduates, and post-graduates).
2. Qualitative data refer to qualitative
(ii) Rank data, on the other hand, are the
characteristics of a subject or an object.
result of assigning ranks to specify
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 order in terms of the integers 1,2,3, ..., (i) Primary data: Those data which do
n. Ranks may be assigned according not already exist in any form, and thus
to the level of performance in a test, have to be collected for the first time
a contest, a competition, an interview, from the primary source(s). By their
or a show. The candidates appearing very nature, these data are fresh and
in an interview, for example, may be first-time collected covering the whole
assigned ranks in integers ranging population or a sample drawn from it
from I to n, depending on their
(ii) S econdary data: They already exist in
performance in the interview.
some form: published or unpublished
Sources of Collection of data in an identifiable secondary source.
Based on the data sources, data could They are, generally, available from
be seen as of two types, viz., secondary published source(s), though not
data and primary data. The two can be necessarily in the form actually
defined as under: required. Eg. Data from CSO, NSSO,
RBI….
Primary
Data
Quantitative
Data
Secondary
Based on
Data
characteristics
Qualitative
Data Primary
Data Data
Primary
Secondary
Data
Based on Data
Sources
Secondary Classifications Of Data
Data

12.10 Meaning of Average

Arithmetic mean or mean ( )  “A measure of central tendency is a
typical value around which other
Central value is called a measure of figures congregate.”
central tendency or an average or a
measure of locations. There are five “
 An average stands for the whole
averages. Among them mean, median and group of which it forms a part yet
mode are called simple averages and the represents the whole.”
other two averages geometric mean and
“
 One of the most widely used set
harmonic mean are called special averages.
of summary figures is known as
measures of location.”

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 The mean of a variable is defined as
the sum of the observations divided by the X̅ = A + ∑d
n
number of observations. If the variable
31
x assumes n values x1, x2 … xn then the = 68 +
5
mean, , is given by summing of all x values
divided by the number of x values. = 68 + 6.2

X1+X2+X3+X4+⋯+Xn 1 n = 74.2
X̅ = = ∑ = X,
n n i 1 i 12.11
This formula is for ungrouped or raw data. Standard Deviation (σ)

Example 1: Calculate the mean for given The measures of central tendency
data 2,4,6,8,10. serve to locate the center of the distribution,
∑X but they do not reveal how the items are
Direct Method X̅ =
n spread out on either side of the center. This
Where ∑X = Sum of values characteristic of a frequency distribution
N = No. of items is commonly referred to as dispersion.
The degree of variation is evaluated by
Solution: various measures of dispersion. There
2+4+6+8+10 30 are two kinds of measures of dispersion,
X̅ = = =6 namely
5 5
Short- cut method:
1. Absolute measure of dispersion
The formula for finding mean, 2. Relative measure of dispersion
X̅ = A + ∑d
n Absolute measure of dispersion
Where A= the assumed mean or any value indicates the amount of variation in a set
of X of values in terms of units of observations.
d = deviations of each value from assumed
Relative measures of dispersion
mean.
are free from the units of measurements
Example 2: A student’s marks in 5 subjects
of the observations. They are pure
are 75,68,80,92,and 56. Find
numbers. They are used to compare the
his average mark.
variation in two or more sets, which are
Solution: having different units of measurements of
observations.
X d=X-A
75 7 Standard Deviation is one of
68 → A 0 the methods of Absolute measure of
80 12 dispersion. Karl Pearson introduced the
92 24 concept of standard deviation in 1893.
56 -12 Standard deviation is also called Root-
Total 31 Mean Square Deviation. The reason is
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 that it is the square–root of the mean of
the squared deviation from the arithmetic ∑x2 ∑(x-x̅ )2
𝜎 = � n � or � n �
mean. It provides accurate result. Square
of standard deviation is called Variance. ∑x2 ∑(x-x̅ )2
= Variance =
n n
Definition:
When the sample size is less than 30,
It is defined as the positive square- ∑(x-x̅ )2
variance = ;
root of the arithmetic mean of the square n–1
of the deviations of the given observation When n = number of observations.
from their arithmetic mean. Example 1: Calculate the standard
deviation from the following data by
The standard deviation of the Actual Mean Method: 25, 15, 23, 42, 27,
population is denoted by the Greek letter σ 25, 23, 25, and 20.
(sigma) The standard deviation of sample
is denoted as 's'. Solution: Deviations from actual mean.

Calculation of Standard deviation- Sl. No Values (X) X –X̅ (X –X̅ )2

Individual Series:
1 25 25-25=0 0
There are two methods of calculating
2 15 15-25=10 100
Standard deviation in an individual series.
3 23 23-25= -2 4
a) Deviations taken from Actual mean 4 42 42-25=17 289
b) Deviation taken from Assumed mean 5 27 27-25=2 4
∑(x-x̅ )2 6 25 25-25=0 0
Standard Deviation = � �
n
7 23 23-25=-2 4
Where, x ̅ = mean value of distribution
n = number of observations. 8 25 25-25=0 0

Steps: 9 20 20-25=-5 25

1. Find out the actual mean of given data N=9 225 0 426
(X̅ ) 225
X̅ = =25
2. Find out the deviation of each value 9
from the mean (x ⁼ X –X̅ )
𝜎 = �∑(x-x̅ )2� =
426
= 47.33
3. S quare the deviations and take the total n 9
of squared deviations ∑x2 𝜎 = 6.88 Answer
4. Divided the total ∑x2 by the number of Example 2: Calculate the standard
observation � x2 �
∑ deviation for the following data by
n assumed mean method: 43, 48, 65, 57, 31,
5. The square root of � x2� is standard
∑ 60, 37, 48, 78, 59
n
deviation.
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 Solution: Deviation from assumed mean 12.12
Sl. No (X) d=X-A (A=57) d2 Correlation (Υ)
1 43 -14 196
2 48 -9 81 Introduction
3 65 8 64 Correlation is a statistical device
4 57 0 0 that helps to analyse the covariation of
5 31 -26 676
two or more variables. Sir Francis Galton,
is responsible for the calculation of
6 60 3 9
correlation coefficient.
7 37 -20 400
8 48 -9 81
Types of Correlation
9 78 21 441 Correlation is
10 59 2 4 classified in several
N=10 ∑d = -44 ∑d2=1952 different ways. Three of
the most important ways
1952 -44 2
of classifying correlation
𝜎 = =
10 10 Karl Pearson are:
= 195.2-19.36 = 175.84 = 13.26,
Answer = 13.26

Types of Correlation

Based upon the constancy

Based on the direction Based upon the number
of the ratio of change
of change of variables of variables studied
between the variables

Positive Negative Linear Non-linear

Correlation Correlation Correlation Correlation

Simple Multiple Partial

Correlation Correlation Correlation

Type I: B
 ased on the direction of change of variables
Correlation is classified into two types as Positive correlation and Negative Correlation
based on the direction of change of the variables.

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 Positive Correlation: P is the price of the goods,
The correlation is said to be positive Pc is the price of competitive goods
if the values of two variables move in the Ps is the price of substituting goods
same direction. t is the taste and preference
y is the income.
Ex 1: If income and Expenditure of
a Household may be increasing or Partial Correlation:
decreasing simultaneously. If so, there is If there are more than two variables
positive correlation. Ex. Y= a + bx but only two variables are considered
keeping the other variables constant,
Negative Correlation: then the correlation is said to be Partial
The Correlation is said to be negative Correlation
when the values of variables move in the Type III: Based upon the constancy of
opposite directions. Ex. Y= a – bx the ratio of change between the
Ex 1: Price and demand for a commodity variables
move in the opposite direction. Correlation is divided into two types
as linear correlation and Non-Linear
Type II: 
Based upon the number of correlation based upon the Constancy of
variables studied. the ratio of change between the variables.
There are three types based upon the
Linear Correlation: Correlation is said to
number of variables studied as
be linear when the amount of change in
a) Simple Correlation one variable tends to bear a constant ratio
b) Multiple Correlation to the amount of change in the other.
c) Partial Correlation Ex. Y= a + bx

Simple Correlation: Non Linear: The correlation would be

non-linear if the amount of change in
If only two variables are taken one variable does not bear a constant
for study then it is said to be simple ratio to the amount of change in the other
correlation. variables.
Multiple Correlations: Ex. Y= a + bx2
Methods of Studying Correlation:
If three or more than three variables
are studied simultaneously, then it is The various methods of ascertaining
termed as multiple correlation. whether two variables are correlated or
not are:
Ex: Determinants of Quantity demanded 1. Scatter diagram Method
2. Graphic Method
Qd= f (P, Pc, Ps, t, y)
3. Karl Pearson’s Co - efficient of
Where Qd stands for Quantity correlation and
demanded, f stands for function. 4. Method of Least Squares.
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 Of these, the first two are based on portrays the relationship between these
the knowledge of diagram and graphs, two variables graphically.
whereas the others are mathematical
Advantages of Scatter Diagram method
methods.
(1) It is very simple and non- mathematical
1. Scatter Diagram Method: method
(2) 
it is not influenced by the size of
Scatter diagram is a graph of observed
extreme item.
plotted points where each point represents
the values of X and Y as a coordinate. It (3) 
It is the first step in resting the
relationship between two variables.

Disadvantages of Scatter diagram method

It cannot establish the exact degree of correlation between the variables, but provides
direction of correlation and depicts it is high or low.

Scatter Diagram
Perfect Positive Perfect Negative Low Degree of Positive Low Degree of
y Correlation y Correlation y Correlation y Negative Correlation

o xo x o x o x

High Degree of High Degree of

y Positive Correlation y Negative Correlation y No Correlation y No Correlation

o xo xo x o x

2. Graphic method

In this method, the individual values of two variables are plotted on the graph sheet
and draw the curves of both the variables say x and y. If both X and Y are moving in the
same direction either upward or downward, then the correlation is said to be positive. If
the curves of X and Y move in the opposite direction; then the correlation is said to be
negative.

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 Public vs Private Investments Public Private

45
35
%year-on-year

25
15
5
-5
-15
-25
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Financial year Source: Central Statistical Organisation

3. K
 arl Pearson’s Where dx refers to deviations of x
Coefficient of series from assumed mean A (X-A), dy
Correlation refers to deviations of y series from an
Karl Pearson’s assumed mean θ (Y-B)
Method is popularly ∑dxdy = Sum of product of the deviations
known as Pearson’s x and y series from their
coefficient of correlation denoted by the assumed means.
symbol ‘r’. The coefficient of correlation ‘r’ ∑dx 2 = Sum of the squares of the deviations
measures the degree of linear relationship
of x series from an assumed mean
between two variables say X and Y. The
∑dy 2= Sum of the squares of the deviations
Formula for computing Karl Pearson’s
Coefficient of correlation is: of y series from an assumed mean
N∑XY − (∑X) (∑Y) ∑dx = sum of the deviation of x series
1) r =
N∑X2 − (∑X)2 N∑Y2 − (∑Y)2 from an assumed mean of x

‘r’ is calculated by Direct Method ∑dy = sum of the deviation of y series

without taking deviation of terms either from an assumed mean of y
from actual mean or assumed mean.
Procedure for Computing the
2) r is calculated by taking the Deviation
Correlation Coefficient: (For Direct and
from actual mean.
Deviation from actual mean method).
∑xy
r= where x= (x-x̅ ), y = (y-y̅ ) Step-1 Calculate the mean of two
 
∑x2 ∑y2
series ‘X’ ‘Y’
3) ‘r’ is calculated by taking assumed mean
Step-2 Calculate the deviations ‘X’ and
 
N ∑dxdy − (∑dx ) (∑dy ) Y in two series from their respective
r=
N ∑dx 2 − (∑dx )2 N ∑dy 2 − (∑dy )2 mean.
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 ∑xy
Step-3 Square each deviations of ‘X’
  1 r=
∑x2 ∑y2
and ‘Y’ then obtain the sum of the
Squared deviation, That is and N∑XY − (∑X) (∑Y)
r=
Step-4 Multiply each deviation under
  N∑X2 − (∑X)2 N∑Y2 − (∑Y)2
X with each deviation under Y and
obtain the product of ‘xy’. Then obtain where x= (x-x̅ ), y = (y-y̅ )
the sum of the product of X,Y. Then
obtain the sum of the product of x,y 2. Assumed Mean Deviation Method
is ∑xy.
N ∑dxdy − (∑dx ) (∑dy )
Step-5 Substitute the value in the
  r=
formula. N ∑dx 2 − (∑dx )2 N ∑dy 2 − (∑dy )2

Formula of Karl Pearson’s Coefficient 2. Indirect Method

of Correlation - Ungrouped Data.
dx= (x-x̅ ) and dy = (y-y̅ )
r is free from origin
Direct Method Indirect Method
r is free from unit of measurement -1≤r≤+1
Actual Mean
Using the
deviation Direct Method:
Variables as it is
method
Example 1: Calculate Karl Pearson’s Coefficient of correlation from the following data
and interpret its value:
Price :X 10 12 14 15 19
Supply:Y 40 41 48 60 50
Solution: Let us take Price as X and supply as Y

Computation of Pearson’s Correlation Coefficient

Price: X Supply: Y XY X2 Y2
10 40 400 100 1600
12 41 492 144 1681
14 48 672 196 2304
15 60 900 225 3600
19 50 950 361 2500
∑x = 70 ∑y = 239 ∑xy = 3414 ∑x2 = 1026 ∑y2=11685

N∑XY − (∑X) (∑Y) (5 x 3414) − (70 x 239)

r= r=
N∑X2 − (∑X)2 N∑Y2 − (∑Y)2 (5 x 1026) − (70) 2 5x11685 − (239) 2

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 340
r = 17,070 − 16,730 r= =+0.621
230 ¥ 1304 547.65
Price of the product and supply for the product is positively correlated. When price
of the product increases then the supply for the product also increases.
Actual Mean Method:
Ex-1: Estimate the coefficient of correlation with actualmean method for the following
data.
Age of Cars in years 3 6 8 9 10 6
Cost of Annual Maintains (in 000 ₹) 1 7 4 6 8 4
Solution:
∑xy
r= where x= x-x̅ , y = y-y̅
∑x2 ∑y2

x-x̅ y-y̅
S.No x (x-x̅ )2 =x2 Y (y-y̅ )2=y2 xy
x - 7=x Y –5=y
1 3 -4 16 1 -4 16 16
2 6 -1 1 7 2 4 -2
3 8 +1 1 4 -1 1 -1
4 9 2 4 6 1 1 2
5 10 3 9 8 3 9 9
6 6 -1 1 4 -1 1 +1
42 42
x̅ =7 0 32 y̅ =7 0 32 25
6 6
∑x2 = 32 ∑y2 = 32 ∑xy = 25

Applying in Formula
∑xy 25 25
r= = = = 0.781
∑x2 ∑y2 32 ¥ 32 32

r = 0.781, The Car is getting old in years the cost of maintenance is also increasing. The
age of Car and its maintenance are positively correlated.
Assumed Mean Deviation Method
Ex 1: Find the Karl Pearson coefficient of Correlation between X and Y from the following
data:
X: 10 12 13 16 17 20 25
Y: 19 22 26 27 29 33 37
Solution:
Formula for Assumed Mean Deviation method.

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 N ∑dxdy − (∑dx ) (∑dy )
r=
N ∑dx 2 − (∑dx )2 N ∑dy 2 − (∑dy )2

S.No X Y (X-A)=dx (Y-A)=dy dx2 dy2 Dxdy

1 10 19 -6 -8 36 64 48
2 12 22 -4 -5 16 25 20
3 13 26 -3 -1 9 1 3
4 16 27 0 0 0 0 0
5 17 29 1 2 1 4 2
6 20 33 4 6 16 36 24
7 25 37 9 10 81 100 90
N=7 ∑X=113 ∑Y=193 ∑(X-A)=1 ∑(Y-A)=4 ∑dx =159 ∑dy =230 ∑dxdy=187
2 2

∑X 113 1 12.13
x̅ = = =16
N 7 7 Regression
∑Y 193 4
y̅ = = =27
N 7 7 Evolution of Regression

Take the assumed values A = 16 & B = 27 The term

therefore dx = X – A ⇒ X – 16 and ‘Regression’ was first
coined and used in
dy = Y- A ⇒ Y – 27 1877 by Francis Galton
while studying the
N ∑dxdy − (∑dx ) (∑dy ) relationship between
∴r = Francis Galton
the height of fathers
N ∑dx 2 − (∑dx )2 N ∑dy 2 − (∑dy )2 and sons. The average height of children
7×187−1×4 born of parents of a given height tended
= to move or “regress” toward the average
7×159−(1)2 7×230−(4)2
height in the population as a whole.
1309−4 Galton’s law of universal regression was
=
1112 1610 − 16 confirmed by his friend Karl Pearson, who
collected more than a thousand records of
1305 heights of members of family groups. The
= = 1305
literal meaning of the word “regression” is
1112 1594 (33.34) (39.92)
“Stepping back towards the average”.

Regression is the study of the

= 1305 = 0.9865 r = 0.986
1330.9 relationship between the variables.
If Y is the dependent variable and X
There exists a positive high correlation is independent variable, the linear
between X and Y relationship between the variable is called
the regression equation of Y on X, The

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 regression equation is used to estimate the value of Y corresponding to the known value
of X. The line describing this tendency to regress or going back was called by Galton a
“Regression Line”.

Difference between Correlation and Regression

S.No Correlation Regression

Correlation is the relationship between Regression means going back and it
two or more variables, which vary with is a mathematical measure showing
1
the other in the same or the opposite the average relationship between two
direction variables
Both the variables X and Y are random Both the variables may be random
2
variables variables
It finds out the degree of relationship It indicates the cause and effect
3 between two variables and not the cause relationship between the variables and
and effect relationship. establishes functional relationship.
It is used for testing and verifying the Besides verification it is used for the
4 relation between two variables and gives prediction of one value, in relation to
limited information the other given value.
The coefficient of correlation is a relative Regression coefficient is also relative
measure. The range of relationship lies measure. If we know the value of the
5
between –1 and +1 independent variable, we can find the
value of the dependent variable
There may be spurious correlation In regression there is no such spurious
6
between two variables. regression
It has limited application, because it It has wider application, as it studies
7 is confined only to linear relationship linear and nonlinear relationship
between the variables between the variables
It is not very useful for further It is widely used for further mathematical
8
mathematical treatment. treatment

Two Regression lines gives the best estimate to the value of one
variable for any specific value of the other
X on Y => X = a + by
variable.
Y on X => Y = a + bx
To fit Regression equations X on Y
Regression line is the line which gives and Y on X the following examples are
the best estimate of one variable from the given
value of any other given variable. The line
gives the average relationship between Ex 1: Fit two regression equation
the two variables in mathematical form. X on Y and Y on X for the following data.
The line of regression is the line which
X̅ =12, Y̅ =10, σy= 0.2, σx =0.1 and r = 0.85
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 Solution
12.14
The equation of the regression line of X Introduction To Econometrics
on Y is
(X-X̅ ) = r × σx ×(Y-Y̅ ) Origin Of Econometrics
σy
Given X̅ = 12, Y̅ =10 Economists tried to support their
r = 0.85, σx = 0.1 and σy = 0.2 ideas with facts and figures in ancient
times. Irving Fisher is the first person,
Then substituting the values in formula developed mathematical equation in the
quantity theory of money with help of
(X-12) = 0.85 × (0.1/0.2) × (Y-10)
data. Ragnar Frisch, a Norwegian
(X-12) = 0.85 × (0.5) × (Y-10) economist and statistician named the
X = 0.425 ×(Y-10)+ 12 integration of three subjects such that
X = 0.425Y- 4.25+12 mathematics, statistical methods and
X = 0.425Y+7.75 economics as Econometrics” in 1926.
X on Y
Answer X = 0.425Y + 7.75
Ragnar Anton Kittil
The equation of the regression line of Y Frisch Noble Memorial
on X is Prize in 1969
Ragnar Frisch
(Y-Y̅ ) = r × σy ×(X-X̅ )
σx
The term econometrics is formed
Given X̅ = 12, Y̅ =10
from two words of Greek origin,
r = 0.85, σx = 0.1 and σy = 0.2 ‘oukovouia’ meaning economy and
‘uetpov’ meaning measure. Econometrics
Then substituting the values in formula emerged as an independent discipline
(Y-10) = 0.85 × (0.2/0.1) × (X–12) studying economic phenomena.
(Y-10) = 0.85 × (2) × (X–12) Econometrics may be considered as
Y = 1.7 × (X–12) + 10 the integration of economics, Statistics
Y = 1.7X–20.4+10 and Mathematics.
Y = 1.7X–10.4 Econometrics is an amalgamation
Y on X of three subjects which can be easily
Answer Y = 1.7X–10.4 understood by following Venn diagram
and picture representation.
Economics + Mathematics= Mathematical Economics
Mathematical Economics+ Statistical Data & Its Technique = Econometrics
{Economics + Statistics + Mathematics}+Empirical Data = Econometrics

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 Definitions
In the words of Arthur S. Goldberger, “Econometrics may be defined as the social
science in which the tools of economic theory, mathematics and statistical inference are
applied to the analysis of economic phenomena”.
Gerhard Tinbergen points out that “Econometrics, as a result of certain outlook
on the role of economics, consists of application of mathematical statistics to economic
data to lend empirical support to the models constructed by mathematical economics
and to obtain numerical results”.
H Theil“Econometrics is concerned with the empirical determination of economic
laws”
In the words of Ragnar Frisch “The mutual penetration of quantitative econometric
theory and statistical observation is the essence of econometrics”.

Econometrics means economic measurement. Econometrics deals with the

measurement of economic relationships.

Mathematical Economic
Economics Statistics
Economics

Statistics
Mathematics

Econometrics Mathematical
Statistics

Objectives Of Econometrics
The general objective of Econometrics is to give empirical content to economic theory.
The specific objectives are as follows:

1. It helps to explain the behaviour of a forthcoming period that is forecasting economic

phenomena.

2. It helps to prove the old and established relationships among the variables or between
the variables

3. It helps to establish new theories and new relationships.

4. It helps to test the hypotheses and estimation of the parameter.

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 Flow Chart of Anatomy / Methodology
of Econometrics

Economics Anatomy of Econometric Modeling

Economic theory

Mathematical model of the theory

Mathematics Statistics
Economic model of the theory

Data

Estimation of econometric model

Hypothesis Testing

Forecasting or prediction
Amalgamation of
above Three Subjects is Using the model for control or
policy purpose
Econometrics Difference between the Econometric
model with Mathematical models and
Methodology Of Econometrics statistical models
1. Models in Mathematical Economics
Broadly speaking, traditional or
are developed based on Economic
classical econometric methodology
Theories, while, Econometric Models
consists of the following steps.
are developed based on Economic
1) Statement of the theory or hypothesis Theories to test the validity of Economic
Theories in reality through the actual
2) Specification of the mathematical data.
model of the theory
2. Regression Analysis in Statistics does
3) Specification of the econometric model not concentrate more on error term
of the theory while Econometric Models concentrate
more on error terms
4) Obtaining the data
Statistics Regression:
5) Estimation of the parameters of the
Yi = β0 + β1Xi
econometric model
Econometrics Regression:
6) Hypothesis testing
Yi = β0 + β1Xi+ Ui
7) Forecasting or prediction
(with more than 2 variables) or
8) Using the model for control or policy
Y = β0 + β1X1 + β2X2 + β3X3+Ui
purposes.

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 Systematic Part: β0 + β1Xi or explained 4. 
The Covariances of any Ui with any
part and Random Part: Ui unexplained other Uj are equal to zero
part in a regression. Ui represents the
role of omitted variables in specifying a 5. 
"U" is independent of explanatory
regression relationship of Y on X. Hence, variable (s)
the Ui cannot and should not be ignored. 6. 
Explanatory variables are measured
Assumptions of the Linear Regression without error.
Model 7. 
The explanatory variables are not
The Linear regression model is based perfectly linearly correlated.
on certain assumptions
8. The variables are correctly aggregated.
1. S ome of them refer to the distribution
of the random variable . 9. The relationship is correctly identified
and specified.
2. S ome of them refer to the relationship
between Ui and the explanatory 10. Parameters are linear.
variables (x1, x2, x3 given in the above 12.15
example).
Official Statistics
3. S ome of them refer to the relationship
between Ui the explanatory variables Official Statistics are statistics
themselves. published by government agencies or
Assumptions about the distribution other public bodies such as international
of the values of are called stochastic organizations. They provide quantitative
assumptions of ordinary least squares or qualitative information on all major
(OLS). Assumptions relating to the areas of citizens’ lives. Official Statistics
relationship between Ui and explanatory make information on economic and social
variables and relating to the relationship development accessible to the public,
among the explanatory variables are called allowing the impact of government
other assumptions. policies to be assessed, thus improving
accountability.
Assumptions
The Ministry of Statistics and
1. "U" is a random real variable. That is Programme Implementation (MOSPI)
"U" may assume positive, negative or came into existence as an Independent
zero values. Hence the mean of the "U" Ministry in 1999 after the merging
will be zero. of the Department of Statistics and
the Department of Programme
2. The variance of "U" is constant for all
Implementation.
values of "U"

3. The "U" has a normal distribution. The Ministry has two wings, Statistics
and Programme Implementation.

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 The Ministry

Programme
Statistics (NSO) Implementation

CSO NSSO Twenty point Infrastructure MP Local area

monitoring and Development
programme project monitoring scheme

SDRD FOD DPD CPD

The Statistics Wing called the CSO is located in the Sardar Patel
National Statistical Office (NSO) consists Bhawan, Parliament Street, New Delhi.
of the Central Statistical Office (CSO), The Industrial Statistics Wing of CSO is
the Computer Centre and the National located in Kolkata. The Computer Centre
Sample Survey Office (NSSO). also under the CSO is located in R K
Puram, New Delhi.
Central Statistical Office (CSO)
National Sample Survey Organisation
The Central Statistical Office is one (NSSO)
of the two wings of the National Statistical
The National Sample Survey
Organisation (NSO). It is responsible for
Organisation, now known as National
co-ordination of statistical activities in the
Sample Survey Office, is an organization
country and for evolving and maintaining
under the Ministry of Statistic of the
statistical standards. Its activities include
Government of India.It is the largest
compilation of National Accounts;
organisation in India, conducting regular
conduct of Annual Survey of Industries
socio-economic surveys. It was established
and Economic Censuses, compilation of
in 1950. NSSO has four divisions:
Index of Industrial Production as well
as Consumer Price Indices. It also deals 1. Survey Design and Research Division
with various social statistics, training, (SDRD)
international cooperation, Industrial
Classification, etc. 2. Field Operations Division (FOD)

The CSO is headed by a Director- 3. Data Processing Division (DPD)

General who is assisted by 5 Additional 4. Co-ordination and Publication Division
Director-Generals looking after the (CPD)
National Accounts Division, Social
Statistics Division, Economic Statistics The Programme Implementation
Division, Training Division and the Wing has three Divisions, namely,
Coordination and Publication Division.
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 (i) Twenty Point Programme Summary
(ii) Infrastructure Monitoring and Project First Part deals with meaning of
Monitoring statistics, nature, type and scope. Brief
(iii) 
Member of Parliament Local Area information about the data, data source
Development Scheme. and its kinds are given in the second part.
The third part of this chapter explains
Besides these three wings, there is correlation ‘r’ which measures the strength
National Statistical Commission created and direction of the linear association
through a Resolution of Government between two quantitative variables x and
of India (MOSPI) and one autonomous y. The fourth section depicts regression.
Institute, viz., Indian Statistical Institute The last part of this chapter introduces
declared as an institute of National Econometrics. Next the organizational
importance by an Act of Parliament. structure of Indian statistical system is
given in a gist.

MODEL QUESTIONS
Part – A
Multiple choice questions

1. 
The word ‘statistics’ is used as 4. 
The data collected by questionnaires
__________. are_____________.

(a) Singular. (a) Primary data.

(b) Plural (b) Secondary data.
(c) Singular and Plural. (c) Published data.
(d) None of above. (d) Grouped data.

2. Who stated that statistics as a science of 5. A measure of the strength of the linear
estimates and probabilities. relationship that exists between two
variables is called:
(a) Horace Secrist.
(a) Slope
(b) R.A Fisher.
(b) Intercept
(c) Ya-Lun-Chou
(c) Correlation coefficient
(d) Boddington
(d) Regression equation
3. S ources of secondary data are
6. 
If both variables X and Y increase
___________.
or decrease simultaneously, then the
(a) Published sources. coefficient of correlation will be:
(b) Unpublished sources.
(a) Positive
(c) neither published nor
(b) Negative
unpublished sources.
(c) Zero
(d) Both (A) and (B)
(d) One
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 7. 
If the points on the scatter diagram (b) Regression
indicate that as one variable increases (c) Residual
the other variable tends to decrease the (d) Slope
value of r will be:
12. If Y = 2 - 0.2X, then the value of Y
(a) Perfect positive intercept is equal to
(b) Perfect negative
(c) Negative (a) -0.2
(d) Zero (b) 2
(c) 0.2X
8. The value of the coefficient of correlation (d) All of the above
r lies between:
(a) 0 and 1 13. In the regression equation Y = β0+β1X,
(b) -1 and 0 the Y is called:
(c) -1 and +1 (a) Independent variable
(d) -0.5 and +0.5 (b) Dependent variable
9. The term regression was used by: (c) Continuous variable
(d) none of the above
(a) Newton
(b) Pearson 14. In the regression equation Y = β0+β1X,
(c) Spearman the X is called:
(d) Galton
(a) Independent variable
10. The purpose of simple linear regression (b) Dependent variable
analysis is to: (c) Continuous variable
(d) none of the above
(a) Predict one variable from another
variable 15. Econometrics is the integration of
(b) Replace points on a scatter
(a)Economics and Statistics
diagram by a straight-line
(b) Economics and Mathematics
(c) Measure the degree to which two
(c)
Economics, Mathematics and
variables are linearly associated
Statistics
(d) Obtain the expected value of the (d) None of the above
independent random variable for
a given value of the dependent 16 .Econometric is the word coined by
variable (a) Francis Galton
(b) RagnarFrish
11. A process by which we estimate the (c) Karl Person
value of dependent variable on the (d) Spearsman
basis of one or more independent
variables is called:
(a) Correlation

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 17. 
The raw materials of Econometrics 19. 
The term Uiis introduced for the
are: representation of
(a) Data (a) Omitted Variable
(b) Goods (b) Standard error
(c) Statistics (c) Bias
(d) Mathematics (d) Discrete Variable
20. Econometrics is the amalgamation of
18. The term Uiin regression equation is
(a) 3 subjects
(a) Residuals (b) 4 subjects
(b) Standard error (c) 2 subjects
(c) Stochastic error term (d) 5 subjects
(d) none

Answers

1 2 3 4 5 6 7 8 9 10
c d d a c a c c d a
11 12 13 14 15 16 17 18 19 20
b b b a c b a c a a

Part-B

Answer the following in one or two sentences

21. What is Statistics?
22. What are the kinds of Statistics?
23. What do you mean by Inferential Statistics?
24. What are the kinds of data?
25. Define Correlation.
26. Define Regression.
27. What is Econometrics?

Part-C
Answer the following questions in one paragraph:
28. What are the functions of Statistics?
29. F
 ind the Standard Deviation of the following data:
14, 22, 9, 15, 20, 17, 12, 11 (Answer: = 4.18)
30. State and explain the different kinds of Correlation.
31. Mention the uses of Regression Analysis.
32. Specify the objectives of econometrics.
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 33. Differentiate the economic model with econometric model.
34. Discuss the important statistical organizations (offices) in India.

Part-D
Answer the following questions

35. Elucidatethe nature and scope of Statistics.

36. Calculate the Karl Pearson Correlation Co-efficient for the following data
Demand of Product X : 23 27 28 29 30 31 33 35 36 39
Sale of Product Y: 18 22 23 24 25 26 28 29 30 32
Answer: r=0.9955)
37.Find the regression equation Y on X and X on Y for the following data:
Y: 45 48 50 55 65 70 75 72 80 85
X: 25 30 35 30 40 50 45 55 60 65
(Answer: Y = 0.787X + 7.26, and X =0.87Y + 26.65)
38. Describe the application of Econometrics in Economics.

ACTIVITY
1. Check, Count and make a data set of the number of pages of
your subject books of Economics, Commerce, History, Tamil
and English

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 References

1. Agarwal.D.R (2003)“Statistics for Economists” Vrinda Publications (P) Ltd New

Delhi,
2. Christopher Dougherty (2007), Introduction to Econometrics, Oxford University
Press, 3rd edition, Indian Edition.
3. Greene W.H., (2003) Econometric analysis , 5ed., Prentice Hall,
4. Gujarati.N and Sangeetha (2012) Basic Econometrics, McGraw Hill, Indian
Reprint
5. Gupta.S.P, Gupta.M.P (1998) “Business Statistic” Sultan Chand & Sons. 16th
revised) enlarge edition.
6. Gupta.S.P(2012), “Statistical method” Sultan Chand, New Delhi.
7. Jan Kmenta (2008), Elements of Econometrics, Indian Reprint, Khosla Publishing
House, 2nd edition.
8. Kapur.J.N&Saxena,H.C (2001) “Mathematical statistics” Sultan chand and
Company Ltd., New Delhi.
9. Koutsoyiannis.A, Theory of Econometrics , Indian Reprint, Replika Press Pvt.
LtdKundli
10. Maddala G.S. 1992 , Introduction to econometrics , 2ed., Macmillan
11. Mehta.B.C&KrantiKapoor(2005), Fundamental of Econometrics, Second
Revised Edition, Himalaya Publishing House.
12. Phillips,C(2002)“Statistics – I Economics, management, Finance and the social
science” Published by University of London Press, University of London.
13. Vittal P.R (1986), “Business mathematics and statistics,” Marghan Publications
Madras.

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 TERMINOLOGY

Accelerator முடுக்கி
Balance of trade அயல்நாட்டு வாணிப நிலை
Balance of payments அயல்நாட்டு செலுத்து நிலை
Budget வரவு செலவு திட்டம்
Budgetary deficit நிதிநிலை பற்றாக்குறை
Commercial Banks வணிக வங்கிகள்
Central Bank மத்திய வங்கி
Credit creation கடன் உருவாக்கம்
Cash Reserve Ratio ர�ொக்க இருப்பு வீதம்
Capitalism முதலாளித்துவம்
Capital formation மூலதனத் உருவாக்கம்
Capital மூலதனம்
Consumption function நுகர்வுச் சார்பு
Comparative cost advantage ஒப்பீட்டு செலவு நன்மை
Customs union சுங்க வரி ஒன்றியம்
Common market ப�ொதுச் சந்தை
Capital accumulation மூலதனத் திரட்சி
Casino capitalism சூதாட்ட முதலாளித்துவம்
Crony capitalism சலுகைசார் முதலாளித்துவம்
Credit control கடன் கட்டுப்பாடு
Credit Rationing கடன் பங்கீடு
Correlation co-efficient உடன் த�ொடர்பு கெழு
Development மேம்பாடு
Disposable income செலவிடக் கூடிய வருமானம்
Deflation பணவாட்டம்
Disinflation மித பணவீக்கம்
Demonetization பண மதிப்பிழப்பு
Devaluation நாணய மதிப்பு குறைப்பு
Developing countries வளரும் நாடுகள்
Developed countries வளர்ந்த நாடுகள்
Demand deposit தேவை வைப்பு
Economics ப�ொருளியல்
Exchange rate மாற்று விதம்
Exchange control மாற்று வீத கட்டுபாடு

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 Economic union ப�ொருளாதார கூட்டு
Eco system சுற்று சூழல்
Econometrics ப�ொருளாதார அளவியல்
Face value முக த�ோற்ற மதிப்பு
Foreign country அயல் நாடு
ப�ொது நிதிக் க�ொள்கை, அரச�ோடு
Fiscal policy த�ொடர்புடையது
Finance commission நிதிக் குழு
Fiscal deficit நிதிப்பற்றாக்குறை
Free Trade Area தலையிடா வாணிப பகுதி
Firm நிறுவனம்
Growth வளர்ச்சி
சுங்க வரி மற்றும் வாணிபம் த�ொடர்பான
General agreement on tariffs and trade ப�ொது ஒப்பந்தம்
Goods and services Tax சரக்கு மற்றும் சேவைவரி
Industry த�ொழில்
Investment முதலீடு
Intrinsic value அகமதிப்பு
Inflation பணவீக்கம்
Induced investment ஊக்குவிக்கப்பட்ட முதலீடு
International economics பன்னாட்டு ப�ொருளியல்
International monetary fund பன்னாட்டு பணநிதியம்
Indicative planning சுட்டிக்காட்டும் திட்டம்
Imperative planning கட்டாய திட்டமிடல்
Incidence of Taxation வரி பளு அல்லது வரிச்சுமை
IDBI தேசிய த�ொழில் வளர்ச்சி வங்கி
தலையிடாக் க�ொள்கையைக் க�ொண்டுள்ள
Laissez – Faire capitalist economy முதலாளித்துவ ப�ொருளாதாரம்
Liquidity ர�ொக்கத்தன்மை அல்லது நீர்மைத்தன்மை
Macro economics பேரினப் ப�ொருளாதாரம்
Mixed economy கலப்புப் ப�ொருளாதாரம்
Marginal propensity to consume இறுதிநிலை நுகர்வு விருப்பம்
Marginal propensity to save இறுதிநிலை சேமிப்பு நாட்டம்
Multiplier பெருக்கி
Multilateral Trade Agreement பன்முக வாணிப ஒப்பந்தம்
Monetary policy பணக் க�ொள்கை
Moral suasion அறிவுறுத்தல்
Measure of central Tendency மையப�ோக்கு அளவியல்
Measure of dispersion பரவல் (அல்லது) சிதறல்
National Income தேசிய வருமானம்
Negative externalities எதிர்மறை புறவிளைவுகள்

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 தேசிய வேளாண் மற்றும் கிராமப்புற
NABARD வளர்ச்சி வங்கி
Omitted variable விடுபட்ட மாறிகள்
Personal income தனிநபர் வருமானம்
Per capita income தலைவீத வருமானம்
Proportional Tax விகிதாச்சார வரி
Progressive Tax வளர்வீத வரி
Public Debt ப�ொதுக்கடன்
Positive externalities நேர்மறை புறவிளைவுகள்
Patrimonial capitalism பேரிடர் முதலாளித்துவம்
Planning commission திட்டக் குழு
Primary data முதனிலை புள்ளி விவரம்
RRB வட்டார கிராம வங்கி
Regression Coefficients உடன் த�ொகை கெழு
Subjective factors மனஇயல் காரணிகள்
Stagflation தேக்க வீக்கம்
Speculation ஊக வாணிகம்
Special Drawing Rights சிறப்பு எடுப்பு உரிமை
Sustainable development நிலைத்த மேம்பாடு
Social justice சமூக நீதி
Statutory liquidity Ratio சட்ட பூர்வ இருப்பு வீதம்
Statistics புள்ளியியல்
Secondary data இரண்டாம் நிலை புள்ளி விவரம்
Terms of Trade நிபந்தனை
Trade Blocs வர்த்தக குழுமங்கள்
Tax evasion வரி ஏய்ப்பு
Tax avoidance வரி தவிர்ப்பு
Time deposit கால வைப்பு
Underdeveloped Countries பின்தங்கிய நாடுகள்
Undeveloped Countries வளர்ச்சி குறைந்த நாடுகள்
Vicious circle of poverty வறுமையின் நச்சுச் சுழல்
World Bank உலக வங்கி
World Trade Centre உலக வர்த்தக மையம்
World Trade Organisation உலக வர்த்தக அமைப்பு

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 Economics – XII
List of Authors and Reviewers

Reviewers
Dr. L.Venkatachalam Dr. George V. Kallarackal Dr. S. Iyyam Pillai
Professor, Madras Institute of Developmental Former HOD, Economics Department Former Professor, Dept. of Economics
Studies, Chennai. CMS College, Kottayam, Kerala. Bharathidasan University, Trichy.

Domain Experts
Dr. R. Bernadshaw Dr. S. Theenathayalan
Former Professor, Dept. of Economics, Head, Department of Economics,
NMSSVN College, Nagamalai, Madurai. The Madura College, Madurai.

Subject Coordinator
J. Sornalatha
Post Graduate Assistant, Government Muslim Hr. Sec School.
Chennai-600002.

Authors

Dr. J. Socrates Dr. K. Sadasivam

Head, Department of Economics, Associate Professor, School of Economics,
Manonmaniam Sundaranar University, Tirunelveli. Madurai Kamaraj University, Madurai-625 021.
Dr. R. Albert Christopher Dhas Dr. M. Chitra
Associate Professor, Dept. of Economics, Assistant Professor, School of Economics,
The American College, Madurai. Madurai Kamaraj University, Madurai.
Dr. R.Vaheedha Banu Dr. K Kaliyamurthy,
Assistant Professor, MSS WAKF Board College, Madurai. HOD,Urumu Dhanalakshmi College,Kattur, Trichy.
Dr. S.Shanthi Getzie, K. Karnan
HOD, Bishop Heber College, Post Graduate Assistant, Government Girls Higher Secondary School,
Trichy. Tirumangalam, Madurai.
Stephen Elangovan K. Alamarselvan
Post Graduate Assistant, Post Graduate Assistant, Government Boys Higher Secondary School,
TVS Matric Higher Secondary School, Madurai. Bhuvanagiri, Cuddalore.
B. Shunmugam
Post Graduate Assistant
Natarajan Dhamayanthi Higher Secondary School, Nagapattinam.

Qr Code Management Team

Art & Design Team J.F. Paul Edwin Roy, B.T. Asst,
P.U.M.S -Rakkipatty, Veerapandi, Salem.

Layout & Illustrations A. Devi Jesintha, B.T. Asst,

V2 Innovations, Chennai-86. G.H.S, N.M. Kovil, Vellore
M. Murugesan, B.T. Asst,
In-House QC P.U.M.S. Pethavelankottagam, Muttupettai, Thiruvarur.
Mathan Raj R
Jerald Wilson
Reajesh Thangappan ICT- Co-ordinators
D. Vasuraj
Cover Design P.GT. & H.O.D., (Maths),
KRM Public School, Chennai.
Kathir Arumugam

Co-ordination
Ramesh Munisamy This book has been printed on 80 G.S.M.
Elegant Maplitho paper.
Typist
Printed by offset at:
M. Madhavi
SCERT.

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