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Courses Statistics Suggested Reading Wisconsin

Wisconsin. Seminary in Statistical Research. Harry Jerome, 1937-38

 

Harry Jerome taught statistics in the economics department of the University of Wisconsin from 1915-1938. The following course materials for a research seminar that he taught were found in Milton Friedman’s papers at the Hoover Institution in a file “Student Years”. Since there is no indication of either university or instructor for these materials and with only the course number and academic year to go on, it seems likely that an archivist presumed these might have been from a course at Chicago or Columbia which can be clearly seen not to be the case upon consulting the respective course catalogues.

Possible explanations why Milton Friedman had this Wisconsin material was that he was recruited by Harold Groves as a potential successor to Harry Jerome in the economics department and the material was sent to him in the course of the recruitment or that Friedman came across the stuff in his review of statistics instruction at Wisconsin. In any event, given Friedman’s and Jerome’s common NBER connection, it is not surprising that a research seminar on Wisconsin income statistics would be something that Milton Friedman was naturally interested in.

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Harry Jerome (1886-1938)

“Professor Harry Jerome, economist and author, was born March 7, 1886, to Sarah and Moses Jerome at Bloomington, Illinois, and died September 12, 1938, at Madison, Wisconsin. He graduated from the University of Wisconsin in 1914 and took his post-graduate work there, receiving his Ph.D. degree in 1918.

He was instructor in economics from 1914 to 1918 at Wisconsin. From that year until his death in 1938 he held the position of professor of economics at Wisconsin, and was chairman of the economics department from 1931 until 1936.

In 1919 and 1920 Jerome was district assessor of incomes for the Wisconsin State Tax Commission. He was a member of the staff of the National Bureau of Economic Research from 1923 to 1925, and was one of the directors of that organization for many years. He also served as a member of the advisory board for an income tax study by the Wisconsin Tax Commission. From 1936 he was consultant for a survey of productivity and changing industrial techniques by the Federal Works Progress Administration in cooperation with the National Bureau of Economic Research.

Jerome was the author of three books, Statistical Methods (1924), Migration and Business Cycles (1926), and Mechanization In Industry (1934).”

Source: Harry Jerome Papers, Finding Aid. Wisconsin Historical Society.

 

Research Tip: Boxes 5 and 6 of Harry Jerome’s papers at the Wisconsin Historical Society  have material on the NBER and the Wisconsin department of economics.

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Course Announcement

[Econ.] 230. SEMINARY IN STATISTICAL RESEARCH. Yr; 2 cr. Cooperative research in one or more economic problems, each member of the class concentrating on a selected phase of the common subject. Subject for 1937-38: amount and distribution of wealth and income, with special attention to Wisconsin. Reports on current developments in statistical method. Fee $1.00. 7:15-9:15 Th. Mr. Jerome.

Source: Copy of page 148 from the course catalogue of the University of Wisconsin College of Letters and Science for 1937-38 that was provided Economics in the Rear-View Mirror by fellow historian of economics Professor Marianne Johnson of the College of Business, University of Wisconsin, Oshkosh.

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Course Materials from Econ 230, University of Wisconsin
1937-38

TREATISES ON NATIONAL INCOME AND THE FORMATION OF CAPITAL

List for Review in Econ. 230, 1937-38

  1. W. I. King, The Wealth and Income of the People of the United States.
  2. National Bureau of Economic Research: Vol. I, Income in the United States
  3. Same as (2) – Volume II.
  4. Federal Trade Commission, National Wealth and Income, 69th 1st. Sess. Sen. Doc. No. 126.
  5. W. I. King, The National Income and its Purchasing Power. (NBER)
  6. Maurice Leven, et al, America’s Capacity to Consume (Brookings)
  7. Robert F. Martin, National Income and its Elements (NICB)
  8. U. S. Department of Commerce:

National Income, 1929-36, supplemented by National Income, 1929-32, Sen. Doc. 124, 72d Cong. 2d Session, 1934; and National Income in the United States, 1929-35.

  1. Simon Kuznets, National Income, 1919-35, NBER Bul. 66, supplemented by bulletin on National Income and Capital Formation, (in press).
  2. Harold G. Moulton, The Formation of Capital (Brookings)
  3. Robert F. Martin, Income in Agriculture, 1929-35 (NICB)
  4. Colin Clark, National Income and Outlay (Great Britain)
  5. John A. Slaughter, Income Received in the Various States, 1929-35, (NICB)

 

GROUP A. ESTIMATES OF INCOME PRODUCED IN WISCONSIN, BY INDUSTRIES, 1929-1937

  1. Agriculture
  2. Manufacturing
  3. Construction
  4. Transportation

Railroads and other freight and passenger traffic

  1. Other public utilities
  2. Trade: wholesale and retail
  3. Finance
  4. Service occupations
  5. Government

 

GROUP B. SPECIAL PROBLEMS IN INCOME STATISTICS (WISCONSIN)

  1. A plan for estimating income and number of recipients below the reporting levels for income tax purposes.
  2. Methods of estimating income from currently available data, for tax administration purposes
  3. Distribution of income in Wisconsin by objects of expenditure
  4. Geographical distribution of Wisconsin income
  5. Interstate movement of income: to and from Wisconsin

 

GROUP C. STUDIES IN THE AMOUNT AND DISTRIBUTION OF WEALTH

  1. Estimates of distribution of wealth in a selected county or counties, based on probate records.

 

 

REPORTS FOR October 14, 21 and 28.

  1. A. L. Bowley, “The Definition of National Income”, Econ. Journal, vol. xxxii (1929), pp. 1-11.
  2. Simon Kuznets, “National Income”, in Encyclopedia of the Social Sciences, Vol. II, pp. 205-224.
  3. J. Stamp, “Methods used in different countries for estimating national income; with discussion. Royal Statistical Society Journal. 97 No. 3: 423-66; no. 4: 541-57.

Papers in Studies in Income and Wealth (as yet unpublished [NBER, 1937])
by the Conference on Research in National Income and Wealth:

  1. Gerhard Colm, “Public Revenue and Public Expenditure in National Income”
  2. M. A. Copeland, “Concepts of National Income”
  3. Solomon Fabricant, “On the Treatment of Corporate Savings in the Measurement of National Income”
  4. Simon Kuznets, “Changing Inventory Valuations and Their Effect on Business Savings and on National Income Produced”
  5. Solomon Kuznets, “Some Problems in Measuring Per Capita Labor Income”
  6. Carl Shoup, “The Distinction between ‘Net’ and ‘Gross’ in Income Taxation
  7. O. C. Stine, “Income Parity for Agriculture”

 

Source: Hoover Institution Archives. Papers of Milton Friedman. Box 5, Folder 12 “Student years”.

Image Source:University of Wisconsin’s Carillon Tower from Library of Congress Prints and Photographs Division Washington, D.C. 20540 .

 

Categories
Cornell Exam Questions Statistics

Cornell. Final Examination for Economic Statistics. Willcox, 1921

 

 

While I was unable to retrieve very much at all at the Library of Congress relevant to Walter F. Willcox’s teaching at Cornell, I did come across the following final examination in economic statistics from 1921. As can be seen from the questions, “statistics” was limited to meaning the tables of economic data compiled and published, especially by government agencies. 

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Course Announcement

[Economics] 76b. Second term. Credit three hours. Prerequisite, course 51 [Elementary Economics]. Professor Willcox.

 

Source: Cornell University Official Publication, Vol. XII, No. 17 (1921), The Register 1920-21, p. 93.

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Economic Statistics 76b

Final Examination June 7, 1921.
(Answer any ten questions)

  1. Describe the nature and scope (a) of economic statistics, (b) of business statistics. Explain the differences between them.
  2. What are the main economic uses of water as a natural resource in the United States?
  3. Describe briefly the coal resources of the United States in comparison with those of other countries.
  4. What effects have been produced on the distribution and growth of population by the location of the world’s coal fields?
  5. Explain the discrepancy between the statistical results reached by the Department of Agriculture and the Bureau of the Census. Which set of figures is preferable? Why?
  6. How is the line drawn between (a) agricultural products and manufactured products? (b) mineral products and manufactured products? Why is it drawn in that place?
  7. Is the yield of agricultural products per acre in the United States increasing or decreasing? Give the evidence in support of your reply.
  8. How are manufactured products classified? Why is their classification a matter of importance?
  9. How are hand trades and their products distinguished from manufactured products? how are the former treated at a census? Why?
  10. What are the main sources of information regarding American wage statistics? How may the apparent discrepancy in their results for the period 1890-1900 be reconciled.
  11. How is the wealth of a country or state estimated? If you were asked to estimate the wealth of New York State what method would you follow? Why?
  12. Describe the general nature of German university statistics. Sketch the history of its development.

 

Source: Library of Congress, Manuscript Division. The Papers of Walter Willcox, Box 39, Folder “Introduction to Social Philosophy”.

Image Source: Cornell North Campus from a photomechanical print from 1903 in the Library of Congress Prints and Photographs Division.

 

Categories
Cornell Economists Statistics

Cornell. Life of Walter F. Willcox, economic statistician

 

Following up the previous posting about the department of political science at Cornell University in 1900, now I add two items of interest relating to the professor of economic statistics at that time, Walter F. Willcox, who lived to the ripe old age of 103(!). At the tender age of 93 Willcox was asked to read a short statement about his personal creed for a radio show hosted by the legendary Edward R. Murrow. That statement is included below, followed by the Cornell’s Faculty Memorial Statement issued after his death in 1964.

Available on line is an excerpt from the article “Walter F. Willcox: Statist” from The American Statistician (February, 1961).

 

Research Hint: From Anderson through Zellner, over 70 short biographies at the American Statistical Association website’s “Statisticians in History” webpage.

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This I Believe
Walter F. Willcox

In his 93rd year, i.e. most likely in 1956, Walter F. Willcox read the following statement in the “This I Believe” radio program hosted by Edward R. Murrow.

I have been asked to state what I believe, or in other words, my creed. It consists mainly of selections from the writings of others woven into a loose fabric on which I have come to stand. Seventy years ago, a college teacher told us “a man’s creed is a monument set up to show where he stopped thinking.” He might have gone on to add: you are supposed to be scholars and a scholar never stops thinking, so you can set up no such a monument as a destination, but only as a temporary camp carrying, perhaps, a date to show when you tarried a while at that point.

I believe that each person is born into what seems to him a chaos and given his share in mankind’s task of transforming that chaos into a cosmos. I believe that modern science is beginning to reveal the skeleton of the cosmos but that emotion and action are needed to give it flesh and life. I believe that the aim of all life is “life more abundant,” that life on this planet has steadily become richer, and that in this tiny corner of the cosmos and this bit of unending time there has been irregular progress towards a more abundant life.

I believe with John Dewey, that “Humanity cherishes ideals which are neither rootless nor completely embodied in existence,” and that these cherished ideals form the basis for man’s conception of a God. I believe with Goldwin Smith, that “Above all nations is humanity.” I believe that man receives, through heredity and environment, influences which his own efforts modify, and passes them on to uncounted future generations. Or, as Browning words it, “All that is at all/ lasts ever past recall/ Earth changes/ but thy soul and God stand sure/ What entered into thee/ that was, is, and shall be/ time’s wheel runs back or stops/ Potter and clay endure.”

I believe that human freedom to experiment and to initiate is the most potent of all the forces working for the progress of mankind. I believe that the spread of human freedom and the resultant decrease of fear, at least until 1914, form the best evidence of man’s advance in civilization. I believe with Becker, that “All values are inseparable from the love of truth and the search for it,” and that truth can be discovered only if the mind is free; and with Justice Holmes, that “Truth is best discovered and defended in the marketplace of ideas.”

I believe with Johnson, that “A man should keep his friendships in constant repair.” I believe with Becker, that “Knowledge and the power it gives should be used for the relief of man’s estate,” and that the best form of government yet devised is one which seeks to be “a government of the people, by the people, for the people.” I believe with Sherrington, that “We have, because human, an inalienable prerogative of responsibility which we cannot devolve, as once was thought even upon the stars. We can share it only with each other.”

Source: The actual recording of Walter F. Willcox reading his statement can also be found at the website: “This I Believe: A public dialogue about belief—one essay at a time.”.

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Cornell University Faculty Memorial Statement
Walter Francis Willcox
March 22, 1861 — October 30, 1964

Walter Francis Willcox died at his home, after a brief illness, October 30, 1964. On March 22 he had celebrated his one hundred and third birthday. At the time of his death he was the oldest living alumnus of Phillips Andover Academy, of Amherst College, from which he received degrees of A.B., A.M. and LL.D., and (it was believed) of Columbia University, from which he received the LL.B. and Ph.D. He was also the oldest Professor Emeritus of Cornell and the only one known to have a son also a Professor Emeritus of the same institution.

Born in Reading, Massachusetts, in 1861, he was the son of a Congregational clergyman. Both his mother and father hoped that he, too, would enter the ministry but, after a passing interest in Greek, he turned instead to philosophy. Even before completing his graduate work, however, he found his attention drawn to those human and social problems that were to be his principal concern for the rest of his life. Although he came to Cornell in 1891 on a temporary appointment as an instructor of philosophy, the following year he accepted a position in the Department of Economics, rapidly making statistics his special field and himself a recognized authority and important innovator in that subject.

In 1899 he was asked to serve as chief statistician of the Twelfth Census of the United States, a post that took him to Washington until 1901. Part of his assignment consisted in preparing the new apportionment tables for the Congress; this brought to his attention the alarming rate at which the House had been growing as new seats were added to provide representation for the country’s expanding population, and the unsound method by which seats were apportioned. The House, he felt, could never realize its potentialities as a constructive political institution unless it were reduced to a manageable size—he considered three hundred the optimum number; but he also recognized the virtually insuperable obstacles in the way of any revision that would require incumbent representatives to vote some of their own seats out of existence. He did think, however, that it should be feasible to stem the previously unchecked growth of the body by a law fixing its existing size and providing for automatic reapportionment following each census. He even hoped that this technique might be used to reduce the size of the House by ten seats with each successive census. That proved too Utopian but in 1931, after a very long campaign, Congress finally did fix the size of the House at its existing 435 seats and also provided for regular reapportionment according to a plan Dr. Willcox himself had derived from the principle of “major fractions” originally formulated by Daniel Webster. Walter Willcox’ contribution to this achievement received unprecedented tribute from Senator Arthur Vandenberg, the sponsor of the bill, in a letter to Cornell President Jacob Gould Schurman. Some of Dr. Willcox’ personal satisfaction in this accomplishment was diminished, however, when a group of Harvard mathematicians persuaded Congress to adopt a rival statistical formula for reapportionment. Never convinced of the validity of the “Harvard method,” he continued throughout the remainder of his life to perfect and advocate his own system, and to urge to apparently hopeless cause of reducing the size of the House. His last appearance before a Senate judiciary subcommittee hearing on this subject was in 1959 when he was ninety-eight.

The role Walter Willcox played in national and international organizations can only suggest the nature and extent of his influence in the developing field of statistics. In 1892 he joined the American Statistical Association, becoming its president in 1912 and a fellow in 1917. In addition, he was instrumental in bringing the United States into effective membership in the International Statistical Institute, which he himself had joined in 1899. He served as the United States delegate to its session in Berlin in 1903, and to most of its subsequent biennial meetings in various capitals throughout the world until his final appearance at Paris in 1961. Having been a vice president of the Institute since 1923, he took the lead in reviving it after World War II, and served as its president at the first post war meeting, held in Washington, D.C., in 1947. From that time until his death he held the title of honorary president. In addition, he was a fellow of the Royal Statistical Society and an honorary member of the Statistical Society of Hungary, the Czechoslovakian Statistical Society, and the Mexican Society for Geography and Statistics. He served as a member or adviser of innumerable statistical commissions and boards, the Census Advisory Commission, the New York State Board of Health, the International Congress of Hygiene and Demography (1912), and the World Statistical Congress.

Although each of his four books—The Divorce Problem, A Study in Statistics, 1897, Supplementary Analysis and Derivative Tables, Twelfth Census, 1906; Introduction to the Vital Statistics of the United States 1900-1930, 1933; and Studies in American Demography, 1940—made a significant contribution, it was through his innumerable articles, letters to the editor, and personal written and oral communications that he exerted his surprising influence, not only in the fields of statistics and economics but in the general affairs of the nation. If his attention was habitually attracted by the “facts,” he had an extraordinary instinct for the right facts and great persistence in calling them and the problems and injustices they represented to the attention of his fellow citizens. Characteristically he was one of the very first to study the economic and social conditions of our Negro citizens; and it has been widely recognized that the recent Supreme Court decision establishing the principle of equal representation in state as well as national government reflects his efforts and influence. Both the problems of world government and the United Nations and the affairs of Ithaca and New York State were for him serious preoccupations. When on the occasion of his one hundredth birthday he was asked to comment on his life, he astonished his audience by saying, “If I were to start all over again I think I would go into politics. I don’t think I would have been so successful at that profession, but I would have enjoyed it more.”

In spite of his extensive professional interests and accomplishments and wide travels, the focus of his life, at least next to his family, was surely the University. Having come early enough to know most of the great personalities in Cornell’s early history and notably, all of its presidents from Andrew D. White to James A. Perkins, he had an insatiable interest in anything that pertained to the history, growth, or welfare of Cornell. From 1902-1907 he was Dean of the Faculty of Arts and Sciences, from 1916 to 1920 faculty representative on the Board of Trustees, and from 1931 Professor Emeritus.

An inveterate attender of faculty meetings, he also sought and made informal occasions for faculty discussion. He took a major part in reviving the Faculty Club after World War II, serving as its first president and making a substantial donation to its library. It was in one of the club’s small dining rooms, most fittingly named the Willcox Room, that he met regularly twice a week with luncheon groups. He himself had founded one of these groups nearly forty years ago, and modeled it after a “round table” which he had been invited to attend at the Library of Congress during his stay in Washington at the turn of the century. Although he always referred to it as the Becker luncheon group because, as he explained, he had begun it to serve as an occasion for Carl Becker’s conversation, it has long since been known to others as the Willcox group. Its members have included many of Cornell’s most distinguished citizens from Carl Becker to Liberty Hyde Bailey, Dexter Kimball, and Miss Francis Perkins, to mention a very few. We all, guests and new members, came to appreciate the unobtrusive skill with which the quiet figure of Walter Willcox drew out and directed the conversation.

Walter Willcox was throughout his long life not merely a distinguished economist and citizen; he was a model of a nineteenth-century gentleman and scholar concerned with the fate of his fellow man. He managed the rare feat of keeping his interest up to date without relinquishing his hold on his original values. As nearly as any one man could, he seemed to embody the ideal around which Ezra Cornell and Andrew White had established the University.

Mario Einaudi, Felix Reichmann, Edward W. Fox

 

Source: Cornell University eCommonsCornell University Faculty Memorial Statement.

Image Source: Cornellian 1919, p. 128.

Categories
Harvard Statistics Syllabus

Harvard. Syllabus for Undergraduate Course, Economic Statistics. Frickey, 1940-41

 

In the last post we saw the final exam for the course taught by Edwin Frickey on Economic Statistics at Harvard during the first term of the 1938-39 year. The earliest syllabus for this course that I have been able to  find comes from the collection of course outlines at the Harvard Archives. The syllabus was unchanged (except updating for the current academic year) from 1940-41 through 1946-47.

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Course Listing

Economics 21a 1hf. Introduction to Economic Statistics

Half-course (first half-year). Mon., Wed., Fri., at 10. Associate Professor Frickey.

Two hours a week laboratory work are required.

 

Source: Announcement of the Courses of Instruction Offered by the Faculty of Arts and Sciences During 1940-41. (First edition). Official Register of Harvard University, Vol. XXXVII, No. 31 (May 21, 1940), p. 56.

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Course Enrollment

Economics 21a 1hf. Associate Professor Frickey.—Introduction to Economic Statistics

Total 92: 10 Graduates, 23 Seniors, 23 Juniors, 31 Sophomores, 5 Others.

 

Source: Report of the President of Harvard College and Reports of the Departments, 1940-41, p. 58.

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Economics 21a
1940-41

References:

C.P.T.—Crum, Patton and Tebutt, Economic Statistics;
N.P.—mimeographed Notes and Problems

 

  1. Introduction to Course

Outline of course. Relation of statistics to economics. Elementary concepts. Introductory problem, designed to get students familiar with sources and the nature of statistical analysis in economics.

C.P.T., Ch. I

  1. The Description of a Statistical Series by Charts, Tables, and Statistical Measures

The description of a statistical series by these various devices; the condensing of information. Principles of table and chart construction, illustrated by laboratory work. The description of a statistical series by statistical measures, developed by means of an example—the study of profits and certain economic problems connected therewith. Averages, dispersion, skewness: the criterion for choice of statistical measures; technique of computation; basis for critical judgment.

C.P.T., Chs. V to IX, XI, XII, XIV.
N.P., pp. 81-90, 111-119, 131-132, 161-167.

  1. Index Numbers

Use of index numbers in economics. Basic concepts. Points of view as to the nature of an index number. The simpler methods of computation—weighted aggregate, arithmetic mean of relatives, geometric mean of relatives—and the assumptions behind them. The Fisher formula: advantages and limitations. Various aspects of the problem of weighting. Non-technical discussion of topic of “bias,” indicating its practical importance.

C.P.T., Chs. XVIII, XIX.
N.P., pp. 201-233.
Bulletin No. 284, U.S.B.L.S. (Wesley C. Mitchell on Price Index Numbers), first half of pamphlet.

  1. Time Series

Use of index numbers in economics. Basic concepts. Points of view as to the nature of an index number. The simpler methods of computation—weighted aggregate, arithmetic mean of relatives, geometric mean of relatives—and the assumptions behind them. The Fisher formula: advantages and limitations. Various aspects of the problem of weighting. Non-technical discussion of topic of “bias,” indicating its practical importance.

C.P.T., Chs. VIII, XX to XXIII.
N.P., pp. 300-311, 338-345, 381-388.
Frickey, “The Problem of Secular Trends,” Review of Economic Statistics, September 1934.

  1. Correlation: the Study of Relationships

Use of statistical correlation procedure in economic problems. Basic concepts. Linear versus non-linear correlations. The three fundamental aspects: description, sampling inference, causation. The questions which correlation analysis attempts to answer. The correlation coefficient and related measures: step-by-step development of the logic of the various modes of explanation. The drawing of inferences from the results of a correlation study pertaining, explicitly or implicitly, to a sample. The relation of correlation to causation. Cautions regarding the calculation and interpretation of correlation measures.

C.P.T., Chs. XV, XVI.
N.P., pp. 401-437.
Day, Statistical Analysis, Chs. XII, XIII.
Mills, Statistical Methods, pp. 370-374 and Ch. XI.

  1. Sampling

The various sampling methods used in economics; their advantages and limitations. The precise significance of random sampling and “probable errors.”.

C.P.T., Chs. XIII.

  1. Basic Statistical Data

Statistical Sources. The collection of statistical data. The problem of obtaining homogeneity. The possibilities for misuse of statistical data—illustrated by problems.

C.P.T., Chs. II to V.
Mills, Statistical Methods, Ch. I.
Chaddock, Principles and Methods of Statistics, Chs. I to III.

 

Source: Harvard University Archives, Syllabi, course outlines and reading lists in Economics, 1895-2003, Box 2, Folder “Economics, 1940-41”.

Image Source: From the cover of Harvard Class Album 1946.

Categories
Exam Questions Harvard Statistics

Harvard. Undergraduate Introduction to Economic Statistics. Final Exam, 1939

 

The exam questions seen below, even making an allowance for coming from an undergraduate course (nonetheless 13 of the 87 students were graduate students), indicate that the statistical training of economists at Harvard was a fairly low-grade affair even by the late 1930s, only a mechanical manipulation of different measures of central tendency and dispersion with a dash of trend-fitting and seasonal adjustment for good taste.

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Course Listing

Economics 21a 1hf. Introduction to Economic Statistics

Half-course (first half-year). Mon., Wed., Fri., at 10. Associate Professor Frickey.

 

Source: Announcement of the Courses of Instruction Offered by the Faculty of Arts and Sciences During 1938-39. (Second edition). Official Register of Harvard University, Vol. XXXV, No. 42 (September 23, 1938), p. 147.

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Course Enrollment

 

Economics 21a 1hf. Associate Professor Frickey.—Introduction to Economic Statistics

Total 87: 13 Graduates, 23 Seniors, 17 Juniors, 25 Sophomores, 6 Freshmen, 3 Others.

 

Source: Report of the President of Harvard College and Reports of the Departments, 1938-39, p. 98.

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1938-39
HARVARD UNIVERSITY
ECONOMICS 21a1

Part I

(One hour and thirty minutes.)
Answer any THREE questions.

    1. You are faced with the problem of computing an index of physical production of agricultural products for the years 1910 through 1935.
      1. What significant differences would you expect to find between the results of indexes computed as the weighted geometric mean of relatives and as the weighted arithmetic mean of relatives? Which average would you choose, and why?
      2. What difference would you expect to find among indexes computed respectively on the bases 1910, 1926, and 1935? Would you choose one of these three base periods, or some other base period?
      3. What sort of system of weights would you employ? Why?
    2. During a given interval in 1936, the wages paid to individual laborers in two New England cloth mills were recorded. A frequency table of wages paid was drawn up for each mill, and from the frequency tables, the following characteristics were computed.
Mean Wage Median Wage Standard Deviation of Individual Wages
Company A $25 $25 8.367
Company B $25 $16 23.875
    1. Inferring from the above data, describe the general nature of the frequency distribution of wages for each firm, and compare the wage conditions in the two firms.
    2. What “typical average” would you choose for the distribution of Company A? For that of Company B?
  1. The monthly ordinates of trend found by fitting a linear or curvilinear trend line to a time series of price data would be held by some to represent “long-run normal prices”—that is, the values which the price data would have assumed in the absence of short run cyclical disturbances. Others would maintain that these same trend ordinates are merely the outcome of the particular trend—fitting procedures applied by the statisticians, and therefore reflect only his arbitrary definition of what constitutes “trend” and what constitutes “cycle” in the price series. Evaluate the relative merits of these two points of view toward statistical trend lines, and state your own viewpoint.
  2. In an investigation conducted to ascertain the correlation existing between the value of the assets of firms and the amount of their annual net earnings, the following results were among those obtained. For the specialty store field, the line of regression of annual earnings on asset values gave a “standard error of estimate” of $1000. For the service station field, a similar line of regression of annual earnings on asset values showed a “standard error of estimate” of $500.
    Can we conclude from this that the correlation between earnings and assets is twice as great for service stations as for specialty stores? Why or why not? What additional data would you require in order to ascertain the actual correlation in each case and thereby clinch your argument?

 

PART II

(One hour and thirty minutes.)
Answer question 1, and either 2 or 3.

    1. (Approximately one hour.) The following is a segment of a time series for which certain statistical values have already been computed.
1st quarter 2nd quarter 3rd quarter 4th quarter
1924 21 27 34 40
1925 32 36 28 30
1926 35 37 31 35
1927 36 41 35 39

The central ordinate of trend (a), and the annual increment of trend (b), based on annual averages of quarterly data for a longer period, have been found to be as follows: a = 35; b = 4. The center of the trend period for which these quantities were computed falls at the middle of the year 1924.
The median link relatives, showing typical quarter to quarter change for a longer period, have been found to be:

1st q ÷ 4th q = 110
2nd q ÷ 1st q = 105
3rd q ÷ 2nd q = 85
4th q ÷ 3rd q = 112

Given the preceding data, compute for the period 1924 through 1927 the following:

    1. The quarterly ordinates of trend
    2. The relatives of actual items to the trend.
    3. The seasonally adjusted relatives to trend, to the base 100. (This last step will require also the computation of a seasonal index by the Persons method.)
  1. For the following frequency series, compute the quartile deviation, the coefficient of variation, and determine a good empirical mode. (Show your computations, but do not compute any square roots.)
Wages (dollars per week) No. of Men
0—5 22
5—10 29
10—15 18
15—20 12
20—25 9
25—30 5
30—35 3
35—40 2

 

  1. (a) From the data below compute a price index for 1933 on 1932 as a base, using the Fisher formula.
Commodity Unit Price per unit Physical quantity
1932 1933 1932 1933
A bu. $0.50 $0.60 60 50
B lb. $3.00 $3.30 22 20
C bu. $0.30 $0.24 240 200

(b) If the Fisher formula price index for 1934 on 1933 as a base is 110, and for 1935 on 1934 as a base is 90, construct from the index which you have computed and from the results just given an index for the four years 1932-1935 by which each year is related to a common base.

 

Mid-Year. 1939.

 

Source: Duke University, David M. Rubenstein Library. Lloyd Appleton Metzler Papers, Box 9, Folder “Dust Proof File”.

Image Source: Harvard Album 1947.

Categories
Exam Questions Fields Harvard Statistics Suggested Reading

Harvard. General Exam Preparation for Statistics, 1947

 

 

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April 1, 1947

SUGGESTIONS FOR PREPARATION IN THE GENERAL FIELD OF STATISTICS

Work in the two courses, Economics 121a and 121b, is in almost all cases an essential core of the preparation of the field of Statistics for General Examinations (requirements for the Special Field differ substantially), but such work does not constitute sufficient preparation. A considerable volume of additional reading is recommended, and Sections II and III below give certain pertinent suggestions; but candidates who wish to make other selections should submit their choices for the approval of one of the undersigned.

I. Foundation Theory

For statistical theory as such, a thorough knowledge of the work—in the classroom and in reading assignments—of Economics 121a is ordinarily adequate preparation. The main reading assignments in that course are:

C. U. Yule and M. G. Kendall—An Introduction to the Theory of Statistics, 1937 edition, entire book beginning with Chapter 6;

D. C. Jones—A First Course in Statistics, specified chapters on curve fitting and sampling;

W. P. Elderton-Frequency Curves and Correlation, specified portions on curve fitting and correlation;

but candidates should be prepared as well in the other assigned readings.

II. and III. Statistics Applied to Economics

Suggestions under heads II and III aim at giving the candidate an intensive acquaintance with (a) the applied statistical work of three specific authors, and (b) the applied statistical work in some particular economic area. Candidates who, in undertaking to meet these two requirements, select books or memoirs customarily treated in Economics 121b should understand that a more complete and intensive knowledge of such items is expected in the General Field than in 121b. In respect to each of these readings the candidate will be expected to know the contributions to statistical methodology in that item of reading, to have a critical appraisal of the statistical procedure used, and to know the importance and validity of the results for economic analysis.

The items listed below are merely suggestions; candidates may offer substitute readings for the approval of one of the undersigned.

II. Authors in Applied Statistics

In this section, no elementary statistics textbook is acceptable, nor will the classic Bulletin No. 284, U.S.B.L.S., by W. C. Mitchell, be accepted. Knowledge of these is taken for granted. For any author selected below, some book or extensive memoir presenting an application of statistics to economic problems is intended; but in no case should any item here be identical with one chosen under III below. Each candidate should select three authors.

Suggested Examples:

Sir Wm. Beveridge, Wheat Prices and Rainfall in Western Europe

A. L. Bowley, Wages and income in the United Kingdom since 1860

A.F. Burns, Production Trends

A. F. Burns and Wesley C. Mitchell, Measuring Business Cycles – (certain portions may be omitted; see the note at the end of this memorandum.)

W. L. Crum, Corporate Size and Earning Power

*E. E. Day, The Physical Volume of Production

Paul Douglas, Real Wages in the United States

Ralph Epstein, Industrial Profits

Mordecai Ezekiel, Methods of Correlation Analysis

Solomon Fabricant, Output of Manufacturing Industries

Solomon Fabricant, Employment in Manufacturing, 1899 -1939

*Irving Fisher, Making of Index Numbers

Edwin Frickey, Economic Fluctuations in the United States

Ralph G. Hurlin and W. A. Berridge, Employment Statistics for the United States

Simon Kuznets, Commodity Flow and Capital Formation

Simon Kuznets, National Income and its Composition (Vol. 1)

Simon Kuznets, Secular Movements

Wassily Leontief, Quantitative Input and Output Relations

F. C. Mills, Behavior of Prices

*W. C. Mitchell, Business Cycles—1927 ed. (statistical portions)

*W. M. Persons, Construction of Index Numbers (pp. 1-44)

*W. M. Persons, Indices of General Business Condition

Henry Schultz, The Theory and Measurement of Demand (statistical portions)

*Henry Schultz, Statistical Laws of Demand and Supply (the first part, on demand)

J. A. Schumpeter, Business Cycles, Vol. 1 (with emphasis on statistical portions)

Carl Snyder, Business Cycles and Business Measurements

Woodlief Thomas, et al., The Federal Reserve Index of Industrial Production, Federal Reserve Bulletin for August 1940, pp. 753-771; September 1940, pp. 912-924; July 1942, pp. 642-644; October 1943, pp. 940-984.

III. Statistical Studies in a Single Economic Field

The object of this section is to guide the candidate in studying statistical investigations of more than one author in some one economic subject. The candidate should choose one such subject, and have and intensive knowledge of the statistical work in that subject, or two or more leading authors. Comparisons among such authors will constitute a part of the requirement.

Suggested Examples

Index Numbers: *Fisher, Making of Index Numbers; * Persons, Construction of Index Numbers; (also, look briefly at Frickey, The Theory of Index-Number Bias, Review of Economic Statistics, November 1937.)

Secular Growth of Output: Burns, Production Trends; Fabricant, Output of Manufacturing Industries

Cycles, I: *Mitchell, Business Cycles (1927); Burns and Mitchell, Measuring Business Cycles (certain portion of this book may be omitted; see the note at end of this memorandum).

Cycles, II: *Persons, Indices of Business Conditions; Schumpeter, Business Cycles, Vol. 1

Multiple Correlation: Ezekiel, Methods of Correlation Analysis; Black et al., The Short-Cut Graphic Method of Multiple Correlations, Quarterly Journal of Economics, November 1937, pp. 66-112, and February 1940, pp. 318-364.

Employment: Fabricant, Employment in Manufacturing, 1899 – 1939; Hurlin and Berridge, Employment Statistics for the United States

Profits: Epstein, Industrial Profits; Crum, Corporate Size and Earning Power

Wages: Brissenden, Earnings of Factory Workers; Douglas, Real Wages in the United States

Prices: Mills, Behavior of Prices; Warren and Pearson, Prices (or Gold and Prices).

Distribution of Income: Brookings Report, America’s Capacity to Consume; Lough, High-Level Consumption

N.B. OF THE FIVE BOOKS CHOSEN UNDER II AND III, NOT MORE THAN FOUR MAY BE BOOKS WHICH ARE MARKED WITH A STAR (*) IN THE LISTS ABOVE.

Each candidate should submit his program, well in advance, for the approval of one of the undersigned:

L. W. Crum
Edwin Frickey

 

Source: Harvard University Archives. Syllabi, course outlines and reading lists in Economics, 1895-2003. Box 4, Folder “Economics, 1946-47”.

Image Source: Crum and Frickey in Harvard Class Album, 1942 and 1950.

 

 

 

Categories
Chicago Exam Questions Statistics

Chicago. Ph.D. qualifying exam in statistics. 1932

In his memo of February 1985 (Columbia University, A. G. Hart papers: Box 60, Folder “Sec I Notes on teaching materials, Learning”) Albert G. Hart wrote “I ducked the qualifying exam in statistics (in which for that date I was very well trained) because I disapproved of the focus of previous exams upon minor technicalities—hence I exploited the loophole which made ‘financial organization’ a separate field even though in principle the ‘theory’ exam included monetary economics.” The previous three postings give the examination questions for theory, economic history and financial organization (i.e. money and banking) for the qualifying exams Hart did take. I presume the exam of this posting is one he examined and then decided to duck statistics.

__________________________

[Handwritten note: University of Chicago (H Schultz)]

STATISTICS
Written Examination for the Ph.D.
Spring Quarter, 1932

Time – 3 1/2 hours

Answer seven questions: one question in Part I and two questions in each of the other parts.

PART I. Time Series

  1. Discuss the possibility of applying the theory of probability or of sampling to the study of the statistical characteristics of time series.
  2. Explain the factors that have to be taken into consideration in determining the best trend of a time series. What analyses can be made of a time series from which the trend and seasonal variation have been removed.
  3. Discuss the advantages and limitations of the elimination of seasonals (a) by subtracting, (b) by dividing.

PART II. Index Numbers

  1. Discuss the problem of assigning a precise and unambiguous meaning to a change in the price level (or to a change in some specified section of the price level, e.g., the wholesale price level of metals), touching on the contributions of Edgeworth, Fisher, Divisia, Keynes, and Bortkevitch.
  2. If you were attempting to construct a 15 commodity wholesale price index which would precede the general B.L.S. wholesale price index by at least two months as consistently as possible (a) how would you select your commodities, (b) how would you wait them in the index?
  3. Explain fully:

(a) Does Fisher’s ideal Index measure precisely and unambiguously the change in price level from one period to another of the commodities included in the index?
(b) What significance would you attach to the Factor Reversal test in the selection of the formula for price index?
(c) What significance would you attach to the Time Reversal test in the selection of a formula for a price index?

PART III. Correlation

  1. Let

x1 = annual per capita cigarette consumption

x2 = deflated average annual wholesale price of cigarettes

x3 = deflated annual expenditure on advertising

x4 = time in years

R1.234 = .998 for the period 1922-1929 inclusive

r14= .95

(a)  What meaning would you attach to R1.234?
(b) How reliable would you consider forecasts of x1  for subsequent years based on the regression of x1 on x2 , x3 , and x4 ?
(c) Adjust R1.234  for loss of degrees of freedom. Explain this adjustment.
(d) Calculate R1´.2´3´4´ in which the 1´, 2´, and 3´refer to the deviations from linear trends of the variables 1, 2 and 3.

2.  Prove and explain the following relations:     (The B’s are Greek Betas.)

(a)  R21.23 = B12.3 r12  + B13.2 r13

(b)  R21.23  = B212.3 + B213.2 + 2B12.3 B13.2  r23

What meaning can be given to the Br’s in this connection when the equation of regression is of the type

x1 = a + bx2 + ct + dt2 where t stands for time?

3.  Critically appraise the attempts that have been made to apply the method of multiple correlation to one of the following:

(a) Statistical studies of demand
(b) Statistical studies of supply
(c) Any field selected by yourself.

PART IV. Probability and Sampling

  1. Indicate the best procedures and tables to use in determining the reliability of the following constants, when the number of observations from which they have been derived is small (i.e., less than 50):

(a)  the mean
(b)  the standard deviation
(c)  the simple coefficient of correlation
(d)  the multiple coefficient of correlation
(e)  the coefficients of progression in a multiple correlation equation
(f)  the agreement of a hypothesis with observation
(g)  the presence or absence of dependence

2. In a straw vote 200,000 ballots are sent out. 100,000 are returned and of the 60,000 or marked in favor of the proposition submitted.

(a) What can you say about the reliability of this vote?
(b) If the original mailing had been increased to 800,001 increase in reliability would have been secured in the returns?
(c) List the types of errors to which straw votes are subject.

3.   189 cases were treated with tetanus serum and 80 of them were cured. 199 cases were not treated with tetanus serum and only 42 of them were cured. What is the probability that the serum has had no effect, the difference in recoveries being due to fluctuations in sampling? (Outline your solution.)

4. A factory produces a certain screw which is collected at the machine inboxes of 1200 each. Long experience has shown that the proportion of boxes which contain various percentages of bad screws is as follows:
Per Cent of Bad Screws in Box

Per Cent of
Bad Screws
in Box

Proportion of Boxes Observed
to Contain this Percentage
of Bad Screws

0

0.780

1

0.170

2

0.034

3

0.009

4

0.005

5

0.002

6

0.000

 

The manufacturing standard is to consider any box which contains 2% or less of bad screws is satisfactory. The normal inspection consists in the examination of 50 screws out of each box. In particular box showed six bad screws under normal inspection. What is the probability that the manufacturing standard has not been maintained in the production of this box (i.e., that the box contains more than 2% defective screens)?

N. B. – Outline your solution giving formulas, indicating required tables, etc., But do not carry out the actual computations.

Source: Columbia University Libraries, Manuscript Collections. Albert Gailord Hart Collection. Box 60; Folder “Exams: Chi[cago] Qualifying”.

Image Source: Detail from the Social Science Research Building. University of Chicago Photographic Archive, apf2-07448, Special Collections Research Center, University of Chicago Library.

Categories
Chicago Columbia Cornell Harvard Johns Hopkins Statistics Wisconsin

Graduate Student Enrollments in Economics. Seligman’s Tally, 1909

Here we have a letter from the chairman of the Columbia University economics department, Edwin R. A. Seligman, to the chairman of the trustees of Columbia University, George L. Rives, boasting of the large market share of Columbia with respect to graduate education in economics and sociology. We’ve seen earlier (1900) that Seligman kept a jealous eye on Columbia’s competition.

_____________________________________

[carbon copy of letter Seligman to Rives]

No. 324 West 86 street
New York, February 13, 1909

My dear Sir:

You may be interested in the enclosed statistics which have been compiled by me from answers to questions sent out to the various universities. It shows the relative position of Columbia compared to its six leading competitors, and it is a curious coincidence that the totals of Columbia on the one hand, and of the six universities together on the other, should be precisely the same.

Faithfully yours,

Edwin R. A. Seligman

(Enclosure)

 

To Mr. George L. Rives,
New York City

_____________________________________

STUDENTS WITH DEGREES ENROLLED IN
GRADUATE COURSES, Dec. 1909

 

Economics Sociology Total of Economics and Sociology
Harvard

27

27

Yale

16

12

28

Cornell

10

4

14

Johns-Hopkins

12*

12*

Chicago

12

19

31

Wisconsin

22

4

26

Total in the 6 universities

99

39

138

Columbia

67

71

138

*including duplications

 

Source: Columbia University Archives. Central Files 1890-, Box 338. Folder: “Seligman, Edwin Robert Anderson. 1.1.110 2/5”

Image SourceUniversities and their Sons, Vol. 2 (1899), pp. 485.

Categories
AEA Economists Statistics

AEA. The Study of Statistics in College by Carroll D. Wright, 1887

Carroll D. Wright can be counted among the founding fathers of official government statistics in the United States. Here a few biographical details from an encyclopaedia published shortly after the paper below was presented. For impatient readers (sorry, he didn’t write with the Twitter-feeding generation in mind) my favorite quote:

“Know thyself” applies to nations as well as to men; and that nation which neglects to study its own conditions, or fears to study its own conditions in the most searching and critical manner, must fall into retrogression. If there is an evil, let the statistician search it out; by searching it out and carefully analyzing statistics, he may be able to solve the problem. If there is a condition that is wrong, let the statistician bring his figures to bear upon it, only be sure that the statistician employed cares more for the truth than he does for sustaining any preconceived idea of what the solution should be. A statistician should not be an advocate, for he cannot work scientifically if he is working to an end. He must be ready to accept the results of his study, whether they suit his doctrine or not. The colleges in this connection have an important duty to perform, for they can aid in ridding the public of the statistical mechanic, the man who builds tables to order to prove a desired result. These men have lowered the standard of statistical science by the empirical use of its forces.

The statistician writes history. He writes it in the most concrete form in which history can be written, for he shows on tablets all that makes up the Commonwealth…

Also worth reading are his admiring words for Ernst Engel’s statistical seminar in Berlin…yes indeed, the Engel-Curve Engel.

____________________

 

The Study of Statistics in College
By Hon. Carroll D. Wright

United States Commissioner of Bureau of Labor.

Paper read at the joint session of the American Economic and Historical Associations, at Cambridge, Mass., May 24, 1887.

America has no counterpart to the continental school of statisticians, whose members have entered their particular field of science after special training by a systematic course of instruction. We have our statisticians, to be sure, but they have taken up their work accidentally, and not as a profession. Men engaged in the practice of law or of medicine, or in the other learned professions, enter them only after careful preparation. Our government trains its soldiers and sailors; our colleges and higher institutions of learning fit men for various special scientific and professional labors, but we have not yet reached the advanced stage of educational work in this country which comprehends administration in its broadest terms. The European has an advantage over those engaged in statistical work in this country. Many of the leading colleges and universities of the continent make special effort to fit men to adopt statistical science as a branch of administration, or as a profession.

Körösi, Neumann-Spallart, Ernst Engel, Block, Böhmert, Mayr, Levasseur, Bodio, and their score or more of peers, may well excite our envy, but more deeply stimulate the regret that one of their number, [6] from his brilliant training and his scientific attainments, cannot present to you to-day the necessity of copying into the curricula of our American colleges the statistical features of the foreign school. For magnificent achievement the American statistician need not blush in the presence of the trained European, for, without conceit, we can place the name of our own Walker along with the names of those eminent men I have enumerated. With all the training of the schools, the European statistician lacks the grand opportunities which are open to the American. Rarely has the former been able to project and carry out a census involving points beyond the simple enumeration of the people, embracing a few inquiries relating to social conditions; such inquiries seldom extending beyond those necessary to learn the ages, places of birth, and occupations of the population. Such a census, compared with the ninth and tenth Federal enumerations of the United States, appears but child’s play.

Dr. Engel once said to me that he would gladly exchange the training of the Prussian -Bureau of Statistics for the opportunity to accomplish what could be done in our country. For with it all, he could not carry out what might be done with comparative ease under our government. The European statistician is constantly cramped by his government; the American government is constantly forced by the people. The Parliament of Great Britain will not consent to an industrial census, the proposition that the features of United States census-taking be incorporated in the British census being defeated as regularly as offered. Nor does any continental power yet dare to make extensive inquiries into the condition of the people, or [7] relative to the progress of their industries. The continental school of statisticians, therefore, is obliged to urge its government to accomplish results familiar to our people. The statistics of births, deaths, and marriages, and other purely conventional statistics, are substantially all that come to the hands of the official statisticians abroad. In this country, the popular demand for statistical information is usually far in advance of the governments, either State or Federal, and so our American statisticians have been blessed with opportunities which have given them an experience, wider in its scope, and of a far more reaching character than has attended the efforts of the continental school. Notwithstanding these opportunities which surround official statistics in this country, the need of special scientific training for men in the administration of statistical work is great indeed. This necessity I hope to show before I close.

It is not essential, in addressing an audience of this character, to spend a moment even upon definitions. The importance of statistics must be granted: the uses of the science admitted. But it may be well, before urging specifically the needs of this country for statistical training, to give a few facts relative to such work in European schools.1

1President Walker, of the Institute of Technology; Dr. Ely, of Johns Hopkins; Prof. R. M. Smith, of Columbia College; Dr. Dewey, of the Institute of Technology; and Dr. E. R. L. Gould, of Washington, have very kindly placed at my disposal information supplemental to that which was at hand.

The best school for statistical science in Europe is connected with the Prussian statistical bureau, and was established a quarter of a century ago by Dr. Ernst Engel, the late head of the bureau, probably [8] the ablest living statistician in the old world. The seminary of this statistical bureau is a training school for university graduates of the highest ability, in the art of administration, and in the conduct of statistical and other economic inquiries that are of interest and importance to the government. The practical work is done in connection with the government offices, among which advanced students are distributed with specific tasks. Systematic instruction is given by lectures, and by the seminary or laboratory method, under a general director. Government officers and university professors are engaged to give regular courses to these advanced students. It is considered one of the greatest student honors in Berlin for a university graduate to be admitted to the Statistical Seminary. One graduate of the Johns Hopkins University, a doctor of philosophy, is already under a course of instruction in the Prussian laboratory of political science.

The work of taking the Census of the Prussian population and resources is entrusted to educated men, many of them trained to scientific accuracy by long discipline in the Statistical Seminary, and by practical experience. (Circulars of Information, U. S. Bureau of Education. No. 1, 1887, by Prof. H. B. Adams.)

In this seminary there are practical exercises under the statistical bureau during the day time, with occasional excursions to public institutions, in addition to lectures held mostly in the evening. A recent programme of the seminary comprehends:

  1. Theory, technique, and encyclopedia: once a week.
  2. Statistics of population and of dwellings: once a week.
  3. Medical statistics: once a week. [9]
  4. Applied mathematical statistics: once a week.
  5. Agrarian statistics: once a week.
  6. Exercises in political economy, finance, and financial statistics: 2 hours a week.

The students assist in the work of the statistical bureau without compensation. This is a part of their training, and by it theory and practice are most successfully combined.

I believe there are courses in statistics in nearly all the universities in Germany, certainly in the more prominent institutions of that country, but there are no distinct chairs of statistics. Statistical science is considered a part of political economy, and professors of the latter science give the instruction in statistics.

The most prominent announcements for the leading European universities, for the year 1886-7, are as follows:

University of Leipzig: Professor W. Roscher lectures on agricultural statistics, this branch being a part of one course, taking one or two hours a week. One hour a week is also given to political economy and statistical exercises by Dr. K. Walker.

University of Tübingen: Prof. Gustav von Rümelin devotes three hours a week to social statistics, while Professor Lorey includes in his lectures a treatment of the statistics of forests.

University of Würzburg: Professor G. Schanz devotes four hours a week to general statistics.

University of Dorpat (a German institution in Russia): Professor Al. v. Oettingen teaches ethical statistics two hours each week.

University of Breslau: Professor W. Lexis uses one hour a week on the statistics of population.

University of Halle: Professor Conrad has a seminary of five hours a week, in which statistical subjects, among others, are carefully treated.

University of Kiel: Professor W. Seelig devotes four hours a week to general statistics, and statistics of Germany.

University of Königsberg: Professor L. Elster lectures two hours a week on the theory of statistics.

[10] University of Munich: Dr. Neuberg has a course of one to two hours a week on statistics.

University of Strasburg: Professor G. F. Knapp teaches the theory and practice of statistics three hours a week, and with Professor Brentano has a seminary two hours a week, in which, among other matters, they treat statistical subjects.

University of Prague: Professor Surnegg-Marburg teaches the statistics of European States three hours each week.

University of Vienna: Professor von Inama-Sternegg devotes two hours each week in a statistical seminary.

In addition to the university work outlined, much work is done in the technical schools, as, for instance, at the technical school in Vienna there are given regularly two courses of statistics:

First, ” General comparative statistics of European States ;” their surface, population, industries, commerce, education, etc.

Second, “Industrial statistics of European States;” methods and “technik” of industrial statistics.

These courses are given by Dr. von Brachelli, who is officially connected with the Government Bureau of Statistics.

At Dresden, Dr. Böhmert lectures at the Polytechnic on “The elements of statistics,” and has a statistical seminary. Böhmert is the director of the statistical bureau in the department of the interior. Part of the instruction is given at the bureau. Courses are also given at Zurich on the elements of statistics.

Some of the more important announcements connected with the Ecole Libre des Sciences Politiques, of Paris, for the year 1886-7, are as follows:

  1. By Professor Levasseur, the theory of statistics, and the movement of population, one hour a week for the first quarter.
  2. By M. de Foville, Chief of the Bureau of Statistics, one hour a week in the second quarter upon statistics, commerce, and statistics of foreign commerce.
  3. By Professor Pigeonneau, one exercise each week, in which he treats, among other subjects, of commercial statistics.

[11] In the programme of the University of Brussels, for 1878 and 1879, an announcement for a course of political economy and statistics twice each week, by Professor A. Orts, was made.

Something is being done in Italy, but how much I am not at present able to learn.

These courses, it will be seen, are devised for special training in the practical statistics of the countries named.

A great deal of effort has been expended in Europe through statistical congresses since 1853 to secure uniform inquiries in census-taking, and it is to be regretted that the Congresses have not accomplished the results sought. It was unfortunate that the attention of the statisticians of the world, as brought together in the congresses, was given to the form of inquiry to the exclusion of the form of presentation. In tracing the discussions and deliberations of these congresses, the absence of the intelligent treatment of the presentation of facts, even when drawn out by uniform inquiries. becomes apparent. The art of the statistician in his administrative work found but little encouragement in the long discussions on forms of inquiry, and less was accomplished by these congresses, which are not now held, than has been accomplished through training in the universities of Europe. The great statistical societies abroad have done much in stimulating statistical science, and out of these societies there has now been organized the International Statistical Institute, the first session of which was held in Rome during last month; much is to be hoped from the labors of this Institute, for the men who compose it bring both training and experience to the great task of unifying statistical inquiries [12] and presentations, so far as leading generic facts are concerned, for the great countries comprehended under the broad term, “the civilized world.” For this great array of work, the outlines of which I have briefly and imperfectly given as carried on in Europe, America has no parallel.

Our colleges are beginning to feel that they have some duty to perform, in the work of fitting men for the field of administration, and specifically in statistical science. Dr. Ely is doing something at Johns Hopkins, giving some time, in one of his courses on political economy, to the subject of statistics, explaining its theory, tracing the history of the art or science, and describing the literature of the subject. He attempts, in brief, to point out the vast importance of statistics to the student of social science and to put his student in such a position that he can practically continue his study. Johns Hopkins, as soon as circumstances will admit, will probably secure teachers of statistics and administration, in addition to its present corps of instructors.

Dr. Davis R. Dewey, of the Massachusetts Institute of Technology, is also devoting some time, in connection with his other work, to statistical science. He has two courses:

First, A course of statistics and graphic methods of illustrating statistics, in which attention is chiefly given to the uses of official statistics of the United States. Students are directed to the limitations there are in this respect, what compilations have been and are made, and to the possible reconciliation of discrepancies which appear in official reports. This course is taken in connection with a course in United States finance, and the student is trained to [13] find and use the statistics which will illustrate the points taken up, and to present them graphically.

Second, An advanced course is given in statistics of sociology, in which social, moral, and physiological statistics are considered, in short, all those facts of life which admit of mathematical determination to express the “average man.” Some of Dr. Dewey’s actual problems may serve to illustrate the practical work of his course. Samples of the problems which he gives to his students are as follows:

Are the Indians increasing or decreasing in numbers?
Criticise by illustrations the statement that the value of the products of manufacture of the United States in 1880 was $5,369,325,442.
What margin of error would you allow, if called upon to test the accuracy of the returns of population under one year of age in the Federal census returns?
Can you devise a method to determine from the census reports on population, Table XXI., which is the healthier state, Massachusetts or Connecticut?
Is it true that Massachusetts has more crime per capita than Alabama or Georgia? Can you offer any explanation or facts modifying such a statistical conclusion? Do the census reports afford information as to the increase or decrease in crime?

Perhaps the most systematic teaching of the science of statistics in America is given at Columbia College, under the direction of Professor Richmond M. Smith. He has lectured on the subject of statistical science in the Columbia College School of Political Science since the year 1882. His course is an advanced one for the students of the second or third year of that school. In the first year of the work there were but three students of statistical science; at present there are about twenty-five. Professor Smith gives them lectures two hours per week through the greater part of the year. The theoretical lectures cover a brief history of statistics; a consideration of statistical [14] methods; of the connection of statistical science with political and social science; of the attempt to establish social laws from statistical induction; the doctrine of probabilities, etc., this part of the course being based on German and French writers, principally Mayr, Engel, Wagner, Knapp, Oettingen, Quetelet, Block, and others. The practical part of the Columbia course covers the ordinary topics of statistical investigation, and the statistics are taken, as far as possible, from official publications. These latter lectures are of course comments on the tables and diagrams themselves. Wall tables are used to a certain extent, but experience has found it more convenient to lithograph the tables and diagrams, giving a copy to each student, which he can place in his note-book, and thus save the labor of copying.

From a circular of information from the Columbia College School of Political Science I find the following, relating to the teaching of statistical science:

Statistical science: methods and results. This course is intended to furnish a basis for a social science by supplementing the historical, legal, and economic knowledge already gained, by such a knowledge of social phenomena as can be gained only by statistical observation. Under the head of statistics of population are considered: race and ethnological distinctions, nationality, density, city and country, sex, age, occupation, religion, education, births, deaths, marriages, mortality tables, emigration, etc. Under economic statistics: land, production of food, raw material, labor, wages, capital, means of transportation, shipping, prices, etc. Under the head of moral statistics are considered: statistics of suicide, vice, crime of all kinds, causes of crime, condition of criminals, repression of crime, penalties and effect of penalties, etc. Finally is considered the method of statistical observations, the value of the results obtained, the doctrine of free will, and the possibility of discovering social laws.”

There may be other instances of the teaching of statistical science in American colleges, but those given are all that have come to my knowledge. At [15] Harvard, Dr. Bushnell Hart is teaching the art of graphically presenting statistics, while at Yale and other institutions the theory and importance of statistics are incidentally impressed upon ‘the students in political economy. It will be seen, therefore, that if there is any necessity for such a course as has been cited, the necessity is being met only in slight degree.

Is there such a necessity? Speaking from experience I answer emphatically, Yes. There has not been a single day in the fourteen years that I have devoted to practical statistics that I have not felt the need, not only in myself, but in the offices where my work has been carried on, of statistical training; training not only in the sense of school training, but in the sense of that training which has come to our American statisticians only through experience. My great regret on this occasion is that I can address you with the statistical bureau only as my alma mater, but perhaps the lack I have seen and felt of a different alma mater may give force to my suggestions.

The problems which the statistician must solve, if they are solved at all, are pressing upon the world. Many chapters of political economy must be rewritten, for the study of political economy is now brought under the historical and comparative method, and statistical science constitutes the greatest auxiliary of such a method. There is so much that is false that creeps into the popular mind, which can be rectified only through the most trustworthy statistical knowledge, that the removal of apprehension alone by it creates a necessity sufficient to command the attention of college authorities. The great questions of the day, the labor question, temperance, tariff reform, all great topics, demand the auxiliary aid of [16] scientific statistics, and a thorough training is essential for their proper use. But in the first place there should be a clear understanding of what is necessary to be taught. We read many chapters on the theory and practice of statistics. What is the theory of statistics? The use of the word theory, in connection with statistical science, is to my mind unfortunate, for the word theory, when used in connection with positive information, antagonizes the public mind. When you speak of the theory of statistics, the word theory meaning speculation, the popular feeling is that theoretical statistics are not wanted, but facts. Theory may be fact; statistics may substantiate theory or controvert it. All this we know, and yet I feel that the word is used unfortunately in this connection. If I understand it correctly, the theory of statistics is simply a statement of what it is desired to accomplish by statistics.

Every branch of social science serves to explain the facts of human life. There are some facts which can be explained only by statistics. For instance, it is asserted that there is an alarming amount of illiteracy in Massachusetts. Statistical inquiry shows that by far the greater number of these illiterates are of foreign birth, so that the fault is not with the public school system, but the evil is due to a temporary cause, namely, immigration.

Again, it has been freely asserted that in the United States women of native birth do not have as many children as women of foreign birth. The Census of Massachusetts will show that although American women do have a less number of children, on the average, yet a larger number survive. Common observation would never have shown these things, or would not have shown them accurately.

[17] So everywhere statistics attempt to explain the facts of human life, which can be explained in no other way, as for instance, the effect of scarcity of food on births, on marriages, or crime; the effect of marriage laws on the frequency of divorce, etc. The theory of statistics points out where the statistical method is applicable, and what it can and cannot accomplish. In my opinion, however, it would be better to avoid the use of the word theory entirely, and adopt a concrete term like statistical science, which has three branches: collection, presentation, and analysis. Statistics is a science in its nature, and practical in its working.

The science of statistics, practically considered, comprehends the gathering of original data in the most complete and accurate manner; the tabulation of the information gathered by the most approved methods, and the presentation of the results in com- pact and easily understood tables, with the necessary text explanations. It is the application of statistics which gives them their chief popular value, and this application may, therefore, legitimately be called a part of the science of statistics. The theoretical statistician is satisfied if his truth is the result of statistical investigation, or if his theory is sustained. The practical statistician is satisfied only when the absolute truth is shown, or, if this is impossible, when the nearest approximation to it is reached. But the belief that theory must be sustained by the statistics collected, or else the statistics be condemned, is an idea which gets into the popular mind when the expression, theory of statistics, is used. I would, therefore, avoid it, and I hope that should our colleges adopt courses in statistical science, they will agree [18] upon a nomenclature which shall be expressive, easily understood, and comprehensive in its nature.

The necessity of the study of statistical science would not be so thoroughly apparent if the science was confined to the simple enumeration and presentation of things, or primitive facts, like the number of the people; to tables showing crops, exports, imports, immigration, quantities, values, valuation, and such elementary statements, involving only the skill of the arithmetician to present and deal with them. The moment the combinations essential for comparison are made, there is needed something beyond the arithmetician, for with the production of averages, percentages, and ratios, for securing correct results, there must come in play mathematical genius, and a genius in the exercise of which there should be discernible no influence from preconceived ideas. The science of statistics has been handled too often without statistical science, and without the skill of the mathematician. Many illustrations of this point involving the statistics of this country could be given.

In collating statistics relating to the cost of production, the best mathematical skill is essential, even the skill which would employ algebraic formulae. So with relation to statistics of capital invested in production. To illustrate, the question may be asked, what elements of capital are involved in the census question of “capital invested?” Is it simply the cash capital invested by the concern under consideration, or is it all the money which is used to produce a given quantity of goods? If the members of a firm con- tribute the sum of $10,000, and they have a line of discounts of $100,000, the avails of which are used in producing $200,000 worth of completed goods, what [19] is the capital invested? What is the capital invested which should be returned in the census? If a man has $5,000 invested in his business as a manufacturer, and he buys his goods on 90 days, or four months, and sells for cash, or 30 days, what is his capital invested? This question is one among many of the practical problems that arise in a statistical bureau, but which has not yet been treated scientifically. What has been the result of the reported statistics relating to capital invested? Simply that calculations, deductions, and arguments based on such statistics have been, and are, vicious, and will be until all the elements involved in the term are scientifically classified. Another illustration in point arises in connection with the presentation of divorce statistics, especially when it is desired to compare such statistics with marriages, or to make comparisons to show the progress, or the movement of divorces. Shall the number of divorces be compared with the number of marriages celebrated in the year in which the divorces are granted, or with the population, or with the number of married couples living at the time? I need not multiply illustrations. The lies of statistics are unscientific lies.

The conditions of this country necessitate knowledge as to the parent nativity of the population, features not included in any foreign census, and need not be. Such features lead to what may be called correlated statistics; for instance, where there are presented three or more facts relating to each person in the population, the facts being coordinate in their nature. In this class of work skill beyond that which belongs to the simple operations in arithmetic becomes necessary. There must be employed [20] some knowledge of statistical science beyond elementary statistical tables, or the correlations will be faulty, all the conclusions drawn from them false, and harm done to the public. While the scientific statistician does not care to reach conclusions from insufficient data, he much less desires to be misled by the unscientific use of correct data, or from data the presentation of which has been burdened with disturbing causes. The analytical work of statistical science demands the mathematical man. While this is true, it is also true that the man who casts a schedule (for instance, to comprehend the various economic facts associated with production), should have the ability to analyze the tabulated results of the answers to the inquiries borne upon the schedule. In other words, the man who casts the schedule should not only be able to foresee the work of the enumerator, or the gatherer of the answers desired, but he should foresee the actual form in which the completed facts should be presented. Furthermore, he should foresee the analysis which such facts stimulate and not only foresee the detail, but foresee in a comprehensive way the whole superstructure which grows from the foundation laid in the schedule. He should comprehend his completed report before he gathers the needed information.

How can these elements in one’s statistical education be secured? The difficulties in the way of the best statistical work are not slight. Dr. Dewey, in a recent address upon average prices, before the American Statistical Association, gave an exceedingly valuable, and a very clear explanation of the difficulties which underlie all efforts to secure average prices ranging over a period of years; he pointed out the [21] different methods of securing such averages, and I can do no better than to use Dr. Dewey’s own words, as taken from the address referred to. He says:

“There is first the ordinary ‘index method ‘ introduced by Mr. Newmarch, and continued by the Economist and Mr. Jevons. In this there is no attempt to take account of the varying importance of the commodities where prices are averaged together, but equal consideration is given to all.

“A second method is to give each commodity, where price enters into the averages, a weight proportionate to the quantity of it sold during a fixed period of time.

“In the third method account is taken of the varying importance of the commodities by regarding the part each plays in the exports and imports of a country. This system has been used by Messrs. Giffen and Mulhall. Mr. Giffen’s process in detail is to find the average value of the different articles in the exports and imports; combine these in the proportions of the different articles to the totals of the exports and imports, and then reduce the totals for a series of years to the values they would have been equivalent to had prices remained unchanged.”

This simply indicates that no statistician has yet arrived at a method for securing average prices that shall be considered absolutely correct; that is, in other words, the science of average prices has not been reached, because, if it had been, there would be but one method of securing them. There is but one multiplication table; all men agree to it, because every part of it has been demonstrated to be true. The principle of the multiplication table in statistical operations indicates that science triumphs, for no scientific conclusion is reached so long as skilled men, men of experience and of training, differ relative to methods or results.

The teaching of statistical science in our colleges involves three grand divisions:

  1. The basis of statistical science, or, as it has been generally termed in college work, the theory of statistics.
  1. The practice of statistics, which involves the preparation of inquiries, the collection and examination of the information sought, and the tabulation and presentation of results. [22]
  1. The analytical treatment of the results secured.

These three general elements become more important as the science of statistics becomes more developed; that is, while in conventional statistics, or official statistics if you prefer, meaning those which result from continuous entry of the facts connected with routine transactions, like custom house’ operations, the registration of births, deaths, and marriages, etc., these three elements may not be apparent. But when considered as regards the collection of information from original sources by special investigation through the census, through our bureaus of statistics of labor and kindred offices, and through the consular service, these three grand elements assume a vast importance, and statistical science demands that men be employed who comprehend thoroughly and clearly all the features of the three elements of the science, for the variety of facts to be collected suggests the variety of features connected with the work.

Last year I had the honor to address the American Social Science Association upon popular instruction in social science, advocating the teaching in the public schools of the elementary principles of social science, comprehending those things which are most essential in the conduct of life, in the preservation of health, and in the securing of good order. The Association discussed the practicability of teaching social science in our higher institutions of learning. The suggestion that the school and the college be utilized for propagating the science was met with but one [23] objection of any moment. This objection was that in the colleges and schools the whole time is now exhausted in teaching the branches of human knowledge already established as a part of the curricula of such schools; an excellent objection from a narrow point of view, but a thoroughly inadmissible objection from a point of view which takes in the development of the human race on the best basis, and on a high standard. It was met by the counter-statement that if there is no time in the ordinary college to teach all that the college now teaches, and devote a few hours per week to social science, and all that social science means, so far as teaching is concerned, then drop something else and introduce the social science. But nothing need be dropped in order to teach social science in the colleges and schools of the country. Now, the only objection which I anticipate to the teaching of statistics in our colleges is the same that was made to the proposition to teach social science generally in such institutions, that there is no room for the introduction of instruction in the new science. To my own mind this objection is not only trivial, but of no account whatever in the practical working of institutions of learning. Every well appointed college has its chair of political economy, and this department can be broadened sufficiently to take in statistical science, without impairing efficiency in this or any other department. If this cannot be done, then I would say to the colleges of America that the institutions which soonest grasp the progressive educational work of the day will be the most successful competitors in the race. That college which comprehends that it is essential to fit men for the best administrative duties, not only in government, but [24] in the great business enterprises which demand leaders of as high quality as those essential for a chief magistrate, will receive the patronage, the commendation, and the gratitude of the public. The college or the university which comprehends the demand of the day and institutes new forms of degrees to be conferred upon the men and women specially qualified in special science is in the van. Why should there not be a degree for sanitary science? Why should there not be a degree for social science? Doctor of Philosophy is not enough; it means nothing in popular estimation. The Doctor of Philosophy must understand various things; must be taught and thoroughly trained in the branches necessary to secure the degree of Doctor of Philosophy, but he may know nothing of other branches of human knowledge, except in the most incidental way, which are so essential to fit him for the best administrative duties. The organization of industry demands the very highest type of mind. I sometimes think that the great industrial chieftains of the world are far superior in their capacity, and in their general comprehensive ability, to the great statesmen, to the great leaders of politics, and the great lights that carry nations through crises even. The men who are the best trained, who have learned the practical work of special sciences, are the ones that are guiding the people, and so the colleges or the universities which grasp these things, introducing the teaching of statistical science along with all the other great features of social science, including the branches which bring knowledge nearest to the community itself, are the colleges which will secure success; and not only success in a pecuniary point of view, but success in that grander field of the best [25] work for the race. I urge, therefore, that our American colleges follow the example of European institutions. I would urge upon the government of the United States, and upon the government of the States, the necessity of providing by law for the admission of students that have taken scientific courses in statistics as honorary attachés of, or clerks to be employed in the practical work of, statistical offices. This is easily done without expenditure by the government, but with the very best economic results.

We take a census in the United States every ten years, but as a rule the men that are brought into the work know nothing of statistics: they should be trained in the very elementary work of census-taking and of statistical science. How much more economical for the government to keep its experienced statisticians busily employed in the interim of census- taking, even if they do no more than study forms, methods, and analyses, connected with the presentation of the facts of the preceding census. Money would be saved, results would be more thoroughly appreciated, and problems would be solved.

Our State and Federal governments should be vitally interested in the elevation of statistical work to scientific proportions; for the necessary outcome of the application of civil service principles to the conduct of all governmental affairs lies in this, that as the affairs of the people become more and more the subjects of legislative regulation or control, the necessity for the most accurate information relating to such affairs and for the scientific use of such information increases.

The extension of civil service principles must become greater and greater, and the varied demands [26] which will be created by their growth logically become more exacting, so that the possibilities within the application of such principles are therefore not ideal, but practical in their nature. And these potentialities in the near future will enhance the value of the services of trained statisticians.

The consular and diplomatic service, as well as other fields of government administration, come under this same necessity. The utilization of the consular service for original investigations creates in itself a wide reaching statistical force, and one which should be competent to exercise its statistical functions with all the accuracy that belongs to science. So government should supplement college training with practical administrative instruction, acquired through positive service in its own departments.

This appeal that statistical science be taught in our colleges comes to the Economic Association more forcibly than to any other. The beginning which has been made in this direction in this country is honorable indeed. Shall it be supplemented in the great universities and leading colleges of America? Do not think for a moment that if the teaching of statistical science be incorporated in our college courses the country will be flooded with a body of statisticians. There is enough work for every man who understands statistical science. He need not be employed by government. The most brilliant achievements of the European statisticians have been secured in a private or semi-official way. The demand will equal the supply, and the demand of the public for statistical knowledge grows more and more positive, and the supply should equal the demand.

[27] General Walker in a letter in 1874 said: “The country is hungry for information: everything of a statistical character, or even of a statistical appearance, is taken up with an eagerness that is almost pathetic; the community have not yet learned to be half skeptical and critical enough in respect to such statements.” He can add, Statistics are now taken up with an eagerness that is serious.

“Know thyself” applies to nations as well as to men; and that nation which neglects to study its own conditions, or fears to study its own conditions in the most searching and critical manner, must fall into retrogression. If there is an evil, let the statistician search it out; by searching it out and carefully analyzing statistics, he may be able to solve the problem. If there is a condition that is wrong, let the statistician bring his figures to bear upon it, only be sure that the statistician employed cares more for the truth than he does for sustaining any preconceived idea of what the solution should be. A statistician should not be an advocate, for he cannot work scientifically if he is working to an end. He must be ready to accept the results of his study, whether they suit his doctrine or not. The colleges in this connection have an important duty to perform, for they can aid in ridding the public of the statistical mechanic, the man who builds tables to order to prove a desired result. These men have lowered the standard of statistical science by the empirical use of its forces.

The statistician writes history. He writes it in the most concrete form in which history can be written, for he shows on tablets all that makes up the Commonwealth; the population with its varied [28] composition; the manifold activities which move it to advancement; the industries, the wealth, the means for learning and culture, the evils that exist, the prosperity that attends, and all the vast proportions of the comely structure we call State. Statistical science does not use the perishable methods which convey to posterity as much of the vanity of the people, as of the reality which makes the Commonwealth of to day, but the picture is set in cold, enduring, Arabic characters, which will survive through the centuries, unchanged and unchangeable by time, by accident, or by decay. It uses symbols which have unlocked to us the growth of the periods which make up our past—they are the fitting and never changing symbols by which to tell the story of our present state, that when the age we live in becomes the past of successive generations of men, the story and the picture shall be found to exist in all the just proportions in which it was set, with no glowing sentences to charm the actual, and install in its place the ideal; with no fading colors to deceive and lead to imaginative reproduction, but symbols set in dies as unvarying and as truthful in the future as in the past. The statistician chooses a quiet and may be an unlovely setting, but he knows it will endure through all time.

 

Source: Publications of the American Economic Association, Vol. 3, No. 1, (March 1888), pp. 5-28.

Image Source: Library of Congress Photograph Collection. Frank Leslie’s illustrated newspaper, 1894 Aug. 9, p. 86.