PROJECT REPORT
Course: ECON006: Intermediate Statistics for Economics
Instructor: Mr. Rohit
Name: Anupam Dutt
Roll No.: 23BA147R
Shri Ram College of Commerce (SRCC), University of Delhi
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1. Background of the Project
India's rapidly expanding economy has generated an acute demand for a skilled and continuously
upskilling workforce. Higher educational institutions, particularly those offering programmes in
commerce and economics, serve as critical nodes in the formation of market-ready human capital.
Students at institutions such as Shri Ram College of Commerce (SRCC) are equipped with theoretical
frameworks pertaining to markets, resource allocation, and human capital; yet their own financial
behaviour with respect to skill acquisition beyond their formal curricula remains a largely underexplored
domain.
In recent years, the proliferation of digital learning platforms — such as Coursera, Udemy, and
Internshala — alongside conventional coaching institutes and certification bodies, has substantially
lowered the barriers to self-investment in skill development. Students now routinely engage with these
platforms to acquire competencies that are perceived to be directly rewarded in the labour market.
This project investigates the monthly expenditure on non-curricular skill development among Economics
Honours students at SRCC, University of Delhi. The study is grounded in the theoretical tradition of
Human Capital Theory, which posits that investments in education and skill acquisition enhance
individual productvity and future earnings. By quantifying this expenditure, the study seeks to bridge the
gap between theoretical predictions and observed financial behaviour among undergraduate students.
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2. Project Objectives
The primary and secondary objectives of this study are as follows:
Primary Objective:
To estimate the average monthly expenditure on non-curricular skill-development activities among
Economics Honours students at SRCC, University of Delhi.
Statistical Objectives:
1. To compute descriptive statistics (mean and standard deviation) for the sample data on monthly
skill-development expenditure.
2. To construct a 95% Confidence Interval for the true population mean monthly skill-development
expenditure (μ).
3. To test, using a one-sample t-test, whether the average monthly expenditure of SRCC Economics
Honours students significantly differs from a benchmark figure of ₹500 per month, as loosely
approximated with reference to NASSCOM's assessments of minimum skilling investment.
3. Formulation and Interpretation of the Problem
3.1 Research Problem
Human Capital Theory, as systematically elaborated by Becker (1964) and others, holds that rational
individuals invest in education and skill acquisition when the expected future returns — in the form of
higher wages or improved employment prospects — exceed the present cost of such investment. If
Economics Honours students at SRCC behave consistently with this theoretical prediction, one would
expect a measurable and non-trivial level of expenditure on skill-development activities outside of their
formal college curriculum.
3.2 Variable of Interest
Primary Variable: Average monthly expenditure (in Indian Rupees, ₹) on non-curricular skill-
development activities, including but not limited to:
· Online courses (e.g., Coursera, Udemy, Internshala)
· Coaching institutes
· Certifications and examinations
· Study materials purchased for non-curricular purposes
Secondary Variable: Proportion of total monthly expenditure directed toward skill development
(expressed in categorical ranges).
3.3 Hypothesis Formulation
To formally test whether the observed average expenditure is statistically different from a benchmark
value, the following hypothesis is set up:
Let μ = true population mean of monthly skill-development expenditure (in ₹) of Economics Honours
students at SRCC.
A benchmark value of μ₀ = ₹500 per month is used. This value serves as a conservative threshold — the
minimum investment level that may be considered consistent with meaningful engagement in skill
development.
Null Hypothesis (H₀): μ = 500
(The average monthly skill-development expenditure of Economics Honours students at SRCC is ₹500.)
Alternative Hypothesis (H₁): μ ≠ 500
(The average monthly skill-development expenditure is significantly different from ₹500.)
Type of Test: Two-tailed, one-sample t-test
Level of Significance (α): 0.05
The two-tailed formulation is appropriate because prior theory does not conclusively predict whether
students will spend more or less than ₹500; the direction of deviation is not assumed in advance.
3.4 Justification for Benchmark
The benchmark of ₹500 per month is adopted as an illustrative minimum, inspired by NASSCOM's
broader commentary on skilling and reskilling needs in India. It does not represent an official NASSCOM
figure but functions as a reasonable reference point for assessing the practical significance of student
expenditure.
4. Methodology and Software
4.1 Research Design
This study adopts a quantitative, cross-sectional research design. The quantitative approach is
appropriate because the variable of interest — monthly monetary expenditure — is inherently
numerical, measurable, and objective. A cross-sectional design allows data to be collected at a single
point in time, which is adequate for the purpose of estimating a population parameter.
4.2 Target Population
The target population comprises all students enrolled in the Economics Honours programme at Shri Ram
College of Commerce (SRCC), University of Delhi, across all years of study.
4.3 Sampling Method
Simple Random Sampling (SRS) without replacement has been employed. Each student in the
population was assigned a unique identification number. A random number generator was then used to
select 50 respondents, ensuring that every student in the population had an equal and known
probability of inclusion in the sample.
This method is preferred for its simplicity, theoretical elegance, and the unbiasedness of the estimates it
produces.
4.4 Sample Size
n = 50 students
4.5 Data Collection Instrument
Data were collected using a structured questionnaire comprising three questions:
1. (Open-Ended / Primary Variable): "What is your average monthly expenditure on skill-
development activities (₹)? (Include online courses, coaching, certifications, etc.)"
2. (Closed-Ended / Secondary Variable): "What proportion of your total monthly budget does this
expenditure represent?"
3. (Open-Ended / Contextual): "What exactly do these skill-development activities include?"
Only the responses to Question 1 constitute the primary random variable for statistical analysis.
Responses to Questions 2 and 3 serve supplementary and descriptive purposes.
The survey was administered digitally via Google Forms: [Link]
4.6 Software Used
All statistical analysis was performed using Stata (StataCorp). Stata is a robust statistical software widely
used in economics and social science research for data management, descriptive statistics, inferential
statistics, and hypothesis testing.
5. Data Source
Type: Primary data
Data were collected directly from students at SRCC through a self-administered online questionnaire. No
secondary datasets were used for the primary statistical analysis. The study relied on secondary sources
only for theoretical background and to inform the choice of benchmark value (NASSCOM; Wuttaphan,
2017).
6. Formulae and Stata Commands
6.1 Descriptive Statistics
Sample Mean
Sample Standard Deviation
Stata Command
6.2 Point Estimation
The sample mean x̄ serves as an unbiased point estimator for the true population mean μ
6.3 Confidence Interval for μ (σ Unknown)
Since the population standard deviation σ is unknown, a t-distribution with (n − 1) = 49 degrees of
freedom is used.
95% Confidence Interval:
Where:
· t₀.₀₂₅, ₄₉ ≈ 2.009 (critical value from t-distribution at α/2 = 0.025, df = 49)
· s = sample standard deviation
· n = 50
Stata Command:
ci means expenditure
6.4 Hypothesis Testing: One-Sample t-Test
Test Statistic:
Where μ₀ = 500 (hypothesised population mean).
The computed t-statistic is compared against the critical value t₀.₀₂₅, ₄₉ ≈ 2.009.
Decision Rule:
· If |t| > 2.009: Reject H₀ at 5% level of significance.
· If |t| ≤ 2.009: Fail to Reject H₀.
Alternatively, the decision may be based on the p-value:
· If p-value < 0.05: Reject H₀.
· If p-value ≥ 0.05: Fail to Reject H₀.
Stata Command:
ttest expenditure == 500
7. Results
Note: The results presented below are illustrative, structured to demonstrate the correct interpretation of
Stata output. Actual figures are to be filled in upon completion of data collection and analysis.
7.1 Descriptive Statistics
Statistic Value
Number of Observations (n) 50
Sample Mean (x̄ ) ₹
Sample Standard Deviation (s) ₹
Minimum ₹
Maximum ₹
Median ₹
7.2 Point Estimate
The estimated population mean monthly skill-development expenditure of Economics Honours students
at SRCC is:
μ̂ = x̄ = ₹ [to be filled]
7.3 95% Confidence Interval
A 95% Confidence Interval for the true population mean μ was constructed using the t-distribution (df =
49):
95% CI: [₹ ___ , ₹ ___]
Interpretation: We are 95% confident that the true average monthly skill-development expenditure of all
Economics Honours students at SRCC lies between ₹ ___ and ₹ ___.
7.4 Hypothesis Test Results
Component Value
Hypothesised Mean (μ₀) ₹500
Sample Mean (x̄ ) ₹
t-statistic
Degrees of Freedom 49
p-value (two-tailed)
Decision
Interpretation (template):
The computed t-statistic is ___, with a two-tailed p-value of ___. Since the p-value
8. Conclusion
This study sought to estimate and statistically analyse the monthly expenditure on non-curricular skill-
development activities among Economics Honours students at Shri Ram College of Commerce, University
of Delhi, using Simple Random Sampling and primary data collected via a structured questionnaire.
The descriptive statistics revealed [summary of findings to be completed after data collection]. The 95%
Confidence Interval for the population mean, constructed using the t-distribution, indicated that the true
average monthly expenditure lies between ₹ ___ and ₹ ___. The one-sample t-test [rejected / failed to
reject] the null hypothesis at the 5% level of significance, [indicating / suggesting] that average
expenditure [is / is not] significantly different from the benchmark of ₹500.
These findings carry several implications. If average expenditure is found to be substantially above ₹500,
it would suggest that students at SRCC are meaningfully engaging with the self-investment economy,
consistent with the predictions of Human Capital Theory. Conversely, if expenditure is found to be low, it
may highlight financial constraints, limited awareness, or complacency regarding market-oriented
skilling. Either outcome is informative for college administration, policymakers, and students themselves.
The study, while limited in scope to one programme at one institution, is replicable and may serve as a
methodological template for broader surveys across departments and universities.
9. References
1. Becker, G. S. (1964). Human Capital: A Theoretical and Empirical Analysis, with Special Reference
to Education. National Bureau of Economic Research / Columbia University Press.
Appendix: Questionnaire
Survey Title: Non-Curricular Skill Development Expenditure — SRCC Economics Honours Students
Survey Link: [Link]
Questions:
Q1 (Primary Variable — Open-Ended):
What is your average monthly expenditure on skill-development activities (₹)?
(Include online courses, coaching, certifications, study materials, etc.)
Q2 (Secondary Variable — Closed-Ended):
What proportion of your total monthly budget does this expenditure represent?
· Less than 5%
· 5% – 15%
· 15% – 30%
· More than 30%
Q3 (Contextual — Open-Ended):
What exactly do these skill-development activities include?