This is a relatively stable component and is spending by the government on current goods and services that contribute to the day-to-day running of the public sector. The major item of G1 is the wages and salaries of public servants. An unusual item included in G1 is all defence expenditure regardless of whether it is current or capital in nature. This component accounts for approximately 20 per cent of aggregate demand.
2016
This is a relatively stable component and is spending by the government on current goods and services that contribute to the day-to-day running of the public sector. The major item of G1 is the wages and salaries of public servants. An unusual item included in G1 is all defence expenditure regardless of whether it is current or capital in nature. This component accounts for approximately 20 per cent of aggregate demand.This is spending by businesses/firms on capital goods. It includes spending on:
plant and equipment (factories and machinery) dwellings and non-dwelling buildings (houses and office blocks) stocks of goods (working capital).
This type of expenditure is a very important prerequisite for future economic growth. It is considered a risk, and, as such, is a very sensitive component. It accounts for approximately 15 per cent of aggregate demand.
This is the largest component of aggregate demand, accounting for approximately 60 per cent of total aggregate demand. Despite its size, it is a very stable component. It is spending by individuals and households on new consumption goods and services that directly satisfy wants and needs.
Aggregate demand is the total level of planned spending on goods and services. As a consequence, it includes spending on exports and excludes spending on imports.
English economist, John Maynard Keynes, was the first person to examine in detail the concept of total spending in an economy. He called this concept Aggregate Demand, which he divided into certain components (categories/groups) of spending.
The Nature of Economic Instability
Economic activity is constantly changing as leakages and injections fluctuate. In all contemporary markets, there is a long-term trend of rising production, income and expenditure, but there has not been a steady yearly increase in economic activity. Rather, economic activity is unstable by nature. It proceeds in irregular stages, with economic upswings followed by much slower periods of economic activity. The pattern of fluctuations in the general level of economic activity is known as the trade or business cycle.
The role of the government is to reduce the amplitude of the trade cycle. This means it tries to stop excessive highs and lows.
To understand why macroeconomic instability occurs, it is important to understand the nature and influences on aggregate demand and aggregate supply.
This unit of work looks at economic activity over a range of spheres including private consumption and investment spenditure, economic activity and household services, trade unions and company profit.
Economic activity and household services
Measurement of economic activity is based on goods and services that are marketed. Many goods and services, while produced, are not exchanged, and so no productive income is generated. Household activity includes housework (washing, cleaning and cooking), house repairs and gardening by the owners. This is non-market activity and so is not included in official measures of economic activity.
Collection of Data:
Ø Primary Data
Ø Secondary Data
Sampling:
Ø Concept of Sampling
Ø Non-Random Versus Random Sampling
Ø Simple Random Sampling
Ø Other Types of Random Sampling
As far as the objectivesof your research are concerned, they should be stated in such a way that you are absolutely clear about the goal of your study ---
EXACTLY WHATIT IS THAT YOU ARE TRYING TO FIND OUT?
As far as methodology for DATA-COLLECTION is concerned, we need to consider:
- Source of your data
(the statistical population) - Sampling Methodology
- Instrument for collecting data
COLLECTION OF DATA
The mostimportant part of statistical work is perhaps the collection of data.
Primary and Secondary Data
Primary Data
Data that have been originally collected (raw data) and have not undergone any sort of statistical treatment, are called PRIMARY data.
Secondary Data
Data that have undergone any sort of treatment by statistical methods at least ONCE, i.e. the data that have been collected, classified, tabulated or presented in some form for a certain purpose, are called SECONDARY data.
COLLECTION OF PRIMARY DATA
One or more of the following methods are employed to collect primary data:
i) DirectPersonal Investigation.
ii) IndirectInvestigation.
iii) Collection through Questionnaires.
iv) Collection through Enumerators.
v) Collection through Local Sources.
DIRECT PERSONAL INVESTIGATION
In this method, an investigator collects the information personally from the individuals concerned. Since the information collected is generally considered quite accurate and complete.
INDIRECT INVESTIGATION
Sometimes the direct sources do not exist or the informants hesitate to respond for some reason or other. In such a case, third parties or witnesses having information are interviewed.
COLLECTION THROUGH QUESTIONNAIRES
A questionnaire is an inquiry form comprising of a number of relevant questions with space for entering information asked.
The questionnaires are usually sent by mail, and the informants are requested to return the questionnaires to the investigator after doing the needful within a certain period.
This method is cheap, fairly expeditious and good for extensive inquiries.
COLLECTION THROUGH ENUMERATORS
Under this method, the information is gathered by employing trained enumerators who assist the informants in making the entries in the schedules or questionnaires correctly.
COLLECTION THROUGH LOCAL SOURCES
In this method, there is no formal collection of data but the agents or local correspondents are directed to collect and send the required information, using their own judgment as to the best way of obtaining it.
COLLECTION OF SECONDARY DATA
The secondary data may be obtained from the following sources:
i) Official, e.g. the publications of the Statistical Division, Ministry of Finance, the Federal and Provincial Bureaus of Statistics, Ministries of Food, Agriculture, Industry, Labour, etc.
ii) Semi-Official, e.g., Banks, Railway Board, Central Cotton Committee, Boards of Economic Inquiry, District Councils, Municipalities, etc.
iii) Publications of Trade Associations, Chambers of Commerce, etc.
iv) Technical and Trade Journals and Newspapers.
v) Research Organizationssuch as universities, and other institutions.
By measurement, we usually mean the assigning of number to observations or objects and scaling is a process of measuring.
The four scales of measurements
NOMINAL SCALE
The classification or grouping of the observations into mutually exclusive qualitative categories or classes is said to constitute a nominal scale. For example, students are classified as male and female. Number 1 and 2 may also be used to identify these two categories. The numbers when they are used only to identify the categories of the given scale, and there is no particular order for the grouping.
ORDINAL OR RANKING SCALE
It includes the characteristic of a nominal scale and in addition has the property of orderingor ranking of measurements. For example, the performance of students (or players) is rated as excellent, good fair or poor, etc. Number 1, 2, 3, 4 etc. are also used to indicate ranks. The only relation that holds between any pair of categories is that of “greater than” (or more preferred).
INTERVAL SCALE
A measurement scale possessing a constant interval size (distance) but not a true zero point, is called an interval scale.
Temperature measured on either the Celsius or the Fahrenheit scale is an outstanding example of interval scale because the same difference exists between 20o C (68o F) and 30o C (86o F) as between 5o C (41o F) and 15o C (59o F).
RATIO SCALE
It is a special kind of an interval scale where the sale of measurement has a true zero point as its origin. The ratio scale is used to measure weight, volume, distance, money, etc. The, key to differentiating interval and ratio scale is that the zero point is meaningful for ratio scale.
⇛ Statistics Part 3.
⇛ Statistics Part 1.
Meaning and definition of Statistics
⇛ Statistics Part 2.
Meaning and definition of Statistics
- The word 'statistics' has been used in both the plural and the singular sense.
- Statistics, in plural sense, means a set of numerical figures or data.
- In the singular sense, it represents a method of study and therefore, refers to statistical principles and methods developed for analysis and interpretation of data.
Definition of Statistics
- Statistics is a branch of Mathematics that deals with the scientific collection, organization, presentation, analysis, and interpretation of numerical data in order to obtain useful and meaningful information.
- Collection of data refers to the process of obtaining information.
- Organization of data refers to the ascertaining manner of presenting the data into tables, graphs, or charts so that logical and statistical conclusions can be drawn from the collected measurements.
- Analysis of data refers to the process of extracting from the given data relevant information from which numerical description can be formulated.
- Interpretation of data refers to the task of drawing conclusions from the analyzedData.
Branches of Statistics
- Descriptive Statistics The branch of statistics that focuses on collecting, summarizing, and presenting a set of data.
Examples:
- The average age of citizens who voted for the winning candidate in the last presidential election.
- The average length of all books about statistics.
- Inferential Statistics The branch of Statistics that analyzes sample data to draw conclusions about a population.
Examples:
- For instance, suppose a survey group wants to know the usual opinions among Filipino people on a certain issue. Asking every Filipino to answer a questionnaire would be impossible.
It is expensive, time consuming, and impractical.
Types of Data
Data is any quantitative or qualitative information.
- Quantitative data refers to numerical information obtained from counting or measuring that which be manipulated by any fundamental operation. Examples: age, I.Q. scores, height, weight, income
- Qualitative data refers to descriptive attributes that cannot be subjected to mathematical operations. Examples: gender, citizenship, educational attainment, religion
Variable
A quantity that, varies from an individual to individual.
Discrete and Continues variable
- Discrete variable is a variable that can be obtained by counting. Examples: the number of cellphone users in a company, the number of computers in the laboratory.
- Continues variable is a variable that can be obtained by measuring objects or attributes. Examples: the weight of students, the temperature in a city over a period of time, the area of classrooms
⇛ Statistics Part 2.
I have been asked by potential finance students some questions about finance such as what finance is and the difference between finance and accounting.
Accounting: Accountant’s (sometimes called: Controller) primary function is to develop and provide data measuring the performance of the firm, assessing its financial position, and paying taxes. The accountant is responsible for preparing financial statements such as the income statement, balance sheets, and cash flows. It is normally passive work, in the sense that, the work has a very independent nature to it such as preparing forms and financial statements. It is a good job for people who want to work independently and are very organized (this is only a very brief description, if you are interested in accounting, consult your accounting instructor for more information).
Finance: The financial manager or consultant places primary emphasis on decision making. It uses the financial statements prepared by accountants to make decisions about the firm’s financial condition and to advise others about possible losses and profits. In some cases, finance is more a type of leadership position. A financial manager has to deal not only with finance, but also with economics, accounting, statistics, math, and management. For example, people working with stocks and bonds have to understand and analyze how the underlying companies are performing. How a given company is going to perform during recession? Should they sell or buy stocks or bonds. How a decrease in the interest rate in England may affect the projects a company has in that country. Finance also deals a lot with risk. Derivative securities (options, futures, swaps, etc) are used to hedge against possible increase in risk. Risk managers are in great demand everywhere. Most finance majors find jobs in banks and other financial institutions, government, real estate, consultant companies, insurance, investment companies, stock market exchanges, fundraising, and any firm that needs someone to make financial decisions.
Description of Finance
Students will find the major in Finance particularly well-suited for careers in commercial and investment banking, real estate, corporate control and treasury functions, and insurance organizations. In addition, finance is important for generalists seeking careers in organization planning, management consulting, general line management, and small business management. Students seeking careers in the industries of health care, public and nonprofit management will also benefit from a strong knowledge of finance.Analytical finance such as risk management, investment, and derivative securities provide a more rigorous understanding of financial modeling, the theory and tools that underlie modern financial practice (derivative finance is sometimes called Financial Engineering.). International finance provides the quantitative and analytical foundation for a career in financial analysis, with an emphasis on the international aspects and economic foundations of financial theory and practice. A thorough understanding of the theory of financial markets is combined with institutional detail, hands-on experience with financial analysis, and familiarity with financial applications.
What courses to take depends a lot on your own background, interests, experience, strengths, and weaknesses. Having taken the finance core will leave you with a solid understanding of the key building blocks of real-world finance. The other core courses are crucial elements of this foundation. Firm valuation, corporate finance, investment banking, and most sell-side jobs require a real knowledge of GAAP accounting. Asset pricing, portfolio allocation, and risk management are impossible without a real knowledge of economics and basic statistics. Furthermore, your in depth exposure to international finance give you a comparative advantage (maybe even an absolute advantage) in understanding today's trends, tomorrow's changes, and -- in particular -- the impact of exchange rates -- that is, the "international" in international finance. Going beyond the core, applications and the more practical and more specialized courses give you exposure to real-world experiences and a breadth of experiences. Business courses are particularly relevant for integrating your finance knowledge into the decisions of the firm -- finance is a crucial business input and firms are a key financial environment. Everything is tied together.
I obtained the following information from the Internet
Banking Investment, Commercial, and Insurance and Real Estate
Main Activities: Valuation and company/segment analysis for mergers, spin-offs, acquisitions, LBO's, and so forth. Issuance and placement of securities such as loans, bonds, and equity including corporate valuation, due diligence, credit analysis, security design, and security valuation. Risk management including security sales and structuring, client advising, derivatives valuation, exposure determination (say to foreign exchange fluctuations), VAR, and portfolio allocation. Research/Strategy/Analysis of sectors, macro-trends, regions, or firms in support of the above activities.Consulting (Strategic/Valuation)
Main Financial Activities: Project, business-line, market, and/or financial advice which all center around valuation exercises designed to help the client make better decisions.Management Consulting (and General Management)
Main Financial Activities: Internal financing decisions involving the allocation of capital as above, but also decisions on the capital structure and the raising of additional capital, as well as in the overall allocation of risk.Money Management -- "buy side", because you buy securities
Main Financial Activities: Security valuation, risk/return measurement, and portfolio allocation. Risk management in support of the above. Research/Strategy/Analysis in support of the above.Sales and Trading -- "sell side" because you sell securities
Main Financial Activities: Same as above. "Trading" typically is for the firm's own account and in support of their role of making a market in that security. "Sales" is what it sounds like, except that the product is often structured in response to the client's needs. Sales often requires maintaining client relations.Entrepreneur/Venture Capital
Main Financial Activities: Valuation of firm, business line, and market. Fund raising. International Capital Markets and Banking
Cases in International Finance, International Banking, Foreign Exchange Markets, Credit Analysis, Country Risk Analysis, National Financial Markets and Capital Flows
Corporate Finance and Valuation
Creating and Managing Value, Financial Strategies, Mergers and Acquisitions, Topics in Financial Engineering, Financial Innovation and Structured Finance, Managerial Accounting, Options and Derivatives, Financial Modeling, Mergers and Acquisitions Law, Competitive Strategy, Alliance Strategy
Risk Management
Computer Simulations and Risk Assessment, Credit Analysis, Country Risk Analysis, Options and Derivatives, Financial Modeling
Buy Side and Trading
Options and Derivatives, International Portfolio Management, Fixed Income Securities, Hedge Fund Management, Foreign Exchange Markets
Sales
Transnational Negotiations, Financial Product Marketing, Options and Derivatives, Fixed Income Securities, Foreign Exchange Markets, Topics in Financial Engineering
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