Home > Topics > Business Statistics – I > Statistical Errors & Approximations – Types & Handling

Statistical Errors & Approximations – Types & Handling ⚠️📊

No data is perfect.
Even a well-planned statistical investigation contains errors, because statistics deals with large groups, human responses, and approximations.

Understanding errors is crucial because:

✔ It improves accuracy
✔ Helps identify weak points in data
✔ Ensures better decision-making
✔ Prevents misleading conclusions


What Are Statistical Errors?

Definition:

A statistical error is the difference between the true value and the observed/measured value.

Errors arise because we cannot measure everything perfectly.


Types of Statistical Errors 🧩

Statistical errors can be broadly classified into:

1. Sampling Errors

2. Non-Sampling Errors

3. Approximation Errors

4. Blunders/Human Errors

Let’s explore each with examples.


1. Sampling Errors 🎯

These occur when only a sample (part of the population) is studied instead of the whole population.

Causes:

  • Small sample size
  • Unrepresentative sample
  • Wrong sampling method

Examples:

  • Surveying only college students to estimate India's average income
  • Taking 20 customers as sample for a supermarket study
Important

Sampling errors decrease when sample size increases or when proper sampling methods are used.


2. Non-Sampling Errors 🚫

(These are more dangerous!)

These errors occur in both census and sample surveys.

Major Types:

a) Response Errors

Caused by respondents giving:

  • Wrong answers
  • Incomplete responses
  • Over/understated values

Example: People lying about income or age.


b) Non-response Errors

Some respondents do not reply → reduces accuracy.

Example:
Online surveys usually get low response rates.


c) Enumerator Errors

Mistakes by investigators due to:

  • Poor training
  • Fatigue
  • Careless recording

Example:
Interviewer mis-records “35,000” as “3,500”.


d) Processing Errors

Mistakes during:

  • Editing
  • Coding
  • Data entry
  • Tabulation

Example:
Typing error while entering survey data.


e) Instrument Errors

Faulty measuring tools.

Example:
Weighing machine showing ±2 kg variation.

Response Errors"Wrong answers"
Non-response"Missing data"
Enumerator Errors"Recording mistakes"
Processing Errors"Coding & data entry"
Instrument Errors"Faulty tools"

3. Approximation Errors 🧮

Statistics deals with approximations because:

  • Rounding is necessary
  • Grouping into classes is used
  • Averages may not represent individual values

Examples:

  • Reporting population as “142 crore” instead of 142.3 crore
  • Rounding off ₹12,49,587 to ₹12.50 lakh
  • Mean income ≠ actual income of any individual

Why acceptable?

Approximations make data simple, usable, and comparable.


4. Blunders / Human Errors 🧍‍♂️💥

These are mistakes caused by:

  • Carelessness
  • Wrong units
  • Incorrect calculations
  • Typing errors

Example:
Reporting 120 instead of 12.

Exam Warning

Blunders ≠ statistical errors.
They are avoidable mistakes caused by humans.


ASCII Diagram — Types of Statistical Errors

Sampling Errors

Non-Sampling Errors (Response, Non-response, Enumerator, Processing, Instrument)

Approximation Errors

Blunders (Human mistakes)


How Can Errors Be Minimized? ✔️

1. Use Proper Sampling Methods

Random and stratified sampling reduce errors.

2. Increase Sample Size

Larger samples → more accuracy.

3. Train Investigators

Proper training reduces enumerator errors.

4. Use Pilot Surveys

Helps identify questionnaire issues.

5. Improve Instruments

Calibrated tools reduce measurement errors.

6. Careful Data Processing

Double-check coding, editing, and tabulation.

7. Avoid Over-Reliance on Averages

Use multiple measures (mean, median, mode).


Summary ✨

  • Errors are unavoidable but can be minimized.
  • Sampling errors arise from studying a part of the population.
  • Non-sampling errors arise from response, enumerators, processing, and instruments.
  • Approximation errors occur due to rounding and grouping.
  • Blunders are avoidable human mistakes.

Quiz Time! 🎯

Test Your Knowledge

Question 1 of 5

1. Sampling error occurs when:

Entire population is studied
Part of the population is studied
Data is processed
Tools are faulty