In economic science, statistical disciplines are in priority positions. This is due to various reasons. First of all, within the framework of general economic specialties, statistical studies act as the basis for the development and improvement of analytical methods. In addition, they are an independent direction with their own subject.
Absolute and relative values
These concepts act as key elements in statistical science. They are used to determine quantitative characteristics, the dynamics of their change. Absolute and relative values reflect different characteristics, but without some others cannot exist. The former express the quantitative dimensions of this or that phenomenon regardless of others. It is impossible to evaluate the ongoing changes and deviations. They express the volume and level of a process or phenomenon. Absolute values are always named numbers. They have a dimension or unit of measure. They can be in-kind, labor, cash, and so on. For example, standard hours, pcs., Thousand rubles. and so on. Average and relative values, on the contrary, express the ratio of several exact sizes. It can be established for several phenomena or for one, but taken in a different volume and in a different period. These elements act as a quotient from statistical numbers, which characterizes their quantitative ratio. To determine the relative values, you need to divide one size into another, accepted as the base. The latest may be planned data, actual information from previous years or another company, and so on. The relative magnitude of the comparison can be expressed as a percentage (with the base taken as 100) or coefficients (if the base is one).
Classification of statistical numbers
Absolute values are presented in two types:
- Customized. They characterize the size of the trait in specific units. For example, this may be the size of the employee’s salary, deposit in the bank, and so on. These sizes are found directly during the statistical observation. They are recorded in the primary accounting records.
- Total. Values of this type reflect the final indicator of the characteristic for the totality of objects. These sizes act as the sum of the number of units (population size) or the volume of the varying characteristic.
Units
Natural absolute values can be simple. This, for example, tons, liters, rubles, pieces, kilometers. They can be complex, characterize a combination of several quantities. For example, in statistics, ton-kilometers are used to determine the freight turnover of railway transport, kilowatt-hours are used to estimate electricity production, etc. In studies, conditionally-natural units are also used. For example, a tractor fleet can be converted into reference cars. Value units are used to characterize a dissimilar product in monetary terms. This form, in particular, is used in assessing the income of the population, gross output. Using cost units, statisticians take into account the dynamics of prices over time, and overcome the shortcoming by “comparable” or “constant” prices for the same period. Labor values take into account the total cost of work, the complexity of certain operations that make up the technological cycle. They are expressed in man-days, man-hours and so on.
Relative values
The main condition for their calculation is the comparability of units and the presence of a real connection between the phenomena studied. The value with which the comparison is carried out (the denominator in the fraction) acts, as a rule, as the base or basis of the ratio. Depending on her choice, the result can be expressed in various fractions of a unit. It can be tenths, hundredths (percent), thousandths (10th part% - per mille), ten thousandths (hundredth part% - prodecimille). Comparable units can be both unary and opposite. In the second case, their names are formed from the units used (kg / ha, rub / person, etc.).
Types of Relative Values
In statistics, several types of these units are used. So, there is a relative value:
- Structures.
- Scheduled task.
- Intensity.
- The speakers.
- Coordination.
- Comparisons.
- Degrees of economic development.
The relative magnitude of the task expresses the ratio of the planned for the coming period to the actual for the current period. The plan unit is calculated in the same way. The relative size of the structure is a characteristic of the proportion of specific parts of the studied population in its total volume. Their calculation is carried out by dividing the number in individual parts by their total number (or volume). These units are expressed as a percentage or a simple multiple ratio. For example, the proportion of the urban population is calculated in this way.
Dynamics
The relative value in this case reflects the ratio of the level of the object in a particular period to its status in the past tense. In other words, a change in the phenomenon over a period of time is characterized. The relative value characterizing the dynamics is called the growth rate. The choice of base in the calculation is carried out depending on the purpose of the study.
Intensity
The relative value may reflect the degree of development of a phenomenon in a particular environment. In this case, they speak of intensity. Their calculation is made by comparing the opposite quantities that are in communication with each other. They are established, as a rule, per 1000, 100 and so on units of the studied population. For example, per 100 hectares of land, per thousand people and so on. These relative values are named numbers. For example, population density is calculated this way. It is expressed by the average number of citizens per 1 sq. Km. km of territory. As a subtype of such units are characteristics of the degree of economic development. For example, they include such types of relative values as the level of GNP, GDP, type of economic activity, etc. per capita. These characteristics play an important role in the analysis of the economic situation in the country.
Coordination
The value of relative values can characterize the proportionality of the individual elements of the whole to each other. Calculation is carried out by dividing one part by another. Relative values in this case act as a subtype of intensity units. The difference is that they reflect the level of distribution of the heterogeneous parts of one population. The basis may be one or another sign, depending on the goal. In this regard, for the same whole, several relative values of coordination can be calculated.
Mapping
Relative values of comparison are units that are the quotient of the division of the same statistical characteristics that are characteristics for different objects, but related to one moment or period. For example, the ratio of the cost level of a particular type of product manufactured by two enterprises, labor productivity for different industries and so on is calculated.
Economic assessment
This study makes extensive use of absolute and relative units. The former are used to establish the ratio of stocks and expenses to sources of financing and to assess the enterprise in terms of monetary stability. Relative indicators reflect the structure of funds with the state of fixed and current assets. In an economic assessment, horizontal analysis is used. The most generalizing absolute value characterizing the financial stability of the company is the lack or surplus of sources of financing costs and reserves. The calculation is made by subtracting. The result is the difference in the size of the sources (minus non-current assets), the means of which stocks are formed, and their quantity. The key elements in this are the following statistical units:
- Own current assets.
- The total indicator of planned sources.
- Long-term borrowed and own funds.
Deterministic Factor Research
This analysis is a specific methodology for studying the effects of factors whose interaction with the results is functional in nature. This study is conducted by the creation and evaluation of deterministic models. In this analysis, relative indicators are widely used. In most cases, factor analysis uses multiplicative models. For example, profit can be expressed as the product of the quantity of goods per unit value. Part of the analysis in this case is carried out in 2 ways:
- The absolute difference method involves chain substitution. The change in the result due to the factor is calculated as the product of the deviation of the studied trait to the base of another in the selected sequence.
- The method of relative differences is used to measure the impact of factors on the growth of the result. It is used when the previously calculated percent deviations are present in the source data.
Dynamic rows
They represent a change in the numerical indicators of social phenomena over time. One of the most important areas in this analysis is the study of the features of the development of events for specific periods. Among them:
- Rates of growth. This is a relative indicator, which is calculated by dividing two levels in one row on top of each other. They can be calculated as chained or as basic. In the first case, each level of the series is compared with the previous one. In the second case, the base is selected. All levels in the row are matched with one serving as a base. Growth rates are expressed in ratios or percentages.
- The absolute increase. It represents the difference between the two levels of the time series. Depending on the method of choosing the base, it can be basic and chain. This indicator has the same dimension as the levels of the series.
- Growth rate. This relative indicator reflects the number of percentages by which one level of the time series is more / less than the other, which is taken as the base.
Conclusion
Undoubtedly, relative values have high scientific value. However, in practice they cannot be used separately. They are always in correlation with absolute indicators, expressing the ratio of the latter. If this is not taken into account, then it is impossible to accurately characterize the studied phenomena. Using relative values, it is necessary to show which specific absolute units are hidden behind them. Otherwise, you can draw the wrong conclusions. Only the integrated use of relative and absolute values can act as the most important means of information and analysis in the study of various phenomena occurring in socio-economic life. In general, the transition to the calculation of deviations allows you to compare the economic potential and the result of enterprises, which differ significantly in the amount of resources used or other characteristics. Relative values, in addition, can smooth out some processes (force majeure, inflation, and others) that can distort absolute units in the financial statements.