WOLKITE UNIVERSITY

Department of Agricultural Economics

Computer Application in Agricultural Economics Lecture Notes

March, 2023
Wolkite
 Chapter 1: Introduction to Computer
1.1. What is Computer?

 A computer is an electronic device that accepts user input (data) and processes it under the
influence of a set of instructions referred to as programs to produce the desired output generally
referred to as information
 Data are the raw facts may not make much meaning to the user.
 Programs are set of instructions that instruct a computer what to do.
 Information is result after data has been processed.
 Today, computers are used for communication, management, research, drawing and design as
well as entertainment.
 This 21st century is being referred to as the digital age.
 1.1.1. Computer Parts
 There are 4 basic types of computer parts:
a) Input devices: parts of the computer that allow information or data to be given to the computer
like keyboard or a mouse.
b) Storage devices: parts of the computer that hold information.
 The primary storage device is the computer’s memory called RAM (random access memory).
 The secondary storage device is a disk, which used to store information permanently.
c) Processing device: part of the computer that processes and controls the flow of information; it
actually does the work. The one part of the computer that handles this job is the central processing
unit or CPU.
d) Output devices: parts of the computer that gives out information generated by the computer,
like a monitor, printer or speaker.
 1.2. Basics of Computer and its Operations
 Computer is a device that transforms data into meaningful information.
 It processes the input according to the set of instructions provided to it by the user
and gives the desired output quickly.
 A Computer can perform the following set of functions:
 Accept data
 Store data
 Process data as desired
 Retrieve the stored data as and when required
 Print the result in desired format.
 Data and Information:

 Data: It is the term used for raw facts and figures fed into the computer and along with
the set of instructions.

 Information: Data represented in useful and meaningful form is information.

 Classification of Computers: Computers can be categorized into Digital, Analog and

Hybrid based on their design and working:

 Digital Computers: These are the modern computers which are capable of processing
information in discrete form.

 In digital technology data which can be in the form of letters, symbols or numbers is
represented in binary form i.e. 0s and 1s.
 Cont…
 The digital computers are used in industrial, business and scientific applications.

 Analog Computers: These computers are used to process data generated by ongoing
physical processes.

 Some of the common examples are simulations in aircrafts, nuclear power plants,
hydraulic and electronic networks.

 Hybrid Computers: These use both analog and digital technology.

 Hybrid Computers are used as a cost effective means for complex simulations.
  Classification of Digital Computers
 Micro Computers: These type of digital computer uses a microprocessor (a CPU on a single
chip) and include both desktops and laptops.
 Mini Computers: These computers can support multiple users working simultaneously on the
same machine.
 These are mainly used in an organization where computers installed in various departments are
interconnected.
 Main Frames: These computers are large and very powerful computers with very high memory
capacity.
 These can process huge databases such as census at extremely fast rate.
 They are suitable for big organizations, banks, industries etc.
 Super Computers: These are fastest and very expensive computers.
 They can execute billions of instructions per second.
 These are multiprocessor, parallel systems suitable for specialized complex scientific applications
involving huge amounts of mathematical applications such as weather forecasting.
 Cont…..
 Peripheral Devices: used for performing the specific functions and are connected to the
computer externally.
 Peripheral devices enable the computer to operate according to the user requirements by
feeding data in and out of the computer.
 Peripheral devices are as follows:
 INPUT DEVICES : accept data and instructions from the user. These include:
 Keyboard
 Mouse
 Light Pen
 Optical/magnetic Scanner
 Touch Screen
 Microphone for voice as input
 Cont….

 OUTPUT DEVICES: return processed data that is information, back to the user.

 Some of the commonly used output devices are:

 Monitor (Visual Display Unit)

 Printers

 Plotter

 Speakers

The key distinction between an input device and an output device is that an input device sends
data to the computer, whereas an output device receives data from the computer
  Difference between RAM and Hard-disk
RAM Hard Disk

RAM is an electronic device Hard-disk is an electromechanical device

Electronic device are faster in speed Electro-mechanical device has speed slower than Electronic
device.

CPU is an electronic device, so it’s speed can match with RAM. Hard disk is an electro-mechanical device. Therefore, it’s speed
Therefore, CPU and RAM have connections and that cannot be match by CPU and hence their is no connection
connections is known as buses between hard-disk and CPU.

CPU process the data, and to process that data we need fast speed memory which is known as RAM.
Hard-disk
Hard-disk
  Types of Software

 System Software : are those software, without which our PC, laptop won’t run, i.e it
is must for a device to be operating.

 For Example: Linux, Unix, Windows, etc.

 Application Software :  are those software, without which our PC, laptop can run,
i.e these software are not necessary for a device to be operating.

 For Example: Facebook, What’s App, Games.

  Difference between Hacker and Cracker

 Hacker: They will just warn you something about malicious(hateful) activity going
around in your computer.

 It will not steal your information.

 Cracker: They will try to steal your Information without informing you.
 1.3. Components of Computer
 The 7 major components of a computer.
1. Motherboard: is the main printed circuit board in most computers.
 It allows communicating between many crucial electronic components of a system, such as the
central processing unit and memory.
2. CPU: The second important component of a computer is the CPU, also called central
processor, is the electronic circuitry within a computer that executes instructions that make up a
computer program.
 The CPU performs basic arithmetic, logic, controlling and input/output operations specified by
the instructions in the program.
 The CPU is the brain of the computer, so you can know its importance.
3. Graphics Card: There are two different types of graphic card and they are integrated or
expansion.
 The major work of the graphics card is to create graphics and images that can be shown on a
monitor.
 Cont….
4. Hard Drive: is used to store programs and files on your computer.
 The traditional hard drive would be the HDD which is comprised of a series of magnetized disks.

 Newer hard drives are called SSD which use electrical circuits to store data.

5. Network Card: would be separate card or integrated into the motherboard.

 The major work of network card is to enable your computer to connect to the network and Internet.

6. Monitor: without monitor, the computer would be useless.

 The monitor enables you to view the changes on your computer.

7. USB Ports: The USB port enables you to connect some computer accessories, such as a mouse,
keyboard, external hard drive and so on.
 So, it would be an essential part of the computer.
 (CONTD..) STORAGE DEVICES
USB stands for Universal Serial Bus. It is a portable memory device which is
used to store data that needs to be transferred to the other device using USB
port of the system.
• Also known as a thumb drive, pen drive, flash-drive, memory stick, jump
drive, and USB stick.
• Flash memory is generally more efficient and reliable than optical media,
being smaller, faster, and possessing much greater storage capacity, as well
as being more durable due to a lack of moving parts.
 (CONTD..) STORAGE DEVICES
Memory Card or flash memory card is a memory device. It is used as
an easy, fast and reliable medium to store and transfer data from one
device to the other. It is used in digital cameras, game consoles, mobile
phones etc.
 (CONTD..)
CPU (CENTRAL PROCESSING UNIT)
• The system unit is the box that protects the internal electronic components from
damage
• It contains the central processing unit (CPU) and memory.
• The CPU interprets and carries out the basic instructions that operate the
computer. Memory is where data and instructions are held.
 CPU (CENTRAL PROCESSING UNIT)
• The heart of the computer system is the processor unit.

• It consists of the Arithmetic and Logic Unit (ALU) which executes most
computer operations (arithmetic and logical) and the Control Unit
which acts as the nerve centre that sends control signal to all other units.
 CPU (CENTRAL PROCESSING UNIT)

• The control unit and ALU are usually many times faster than
other devices connected to a computer system

• This enables a single processor to control a number of external

devices such as video terminals, magnetic tapes, disk memories,
sensors, displays and mechanical controllers, since they are much
slower than the processor.
 (CONTD..) MEMORY
Primary Memory is very fast as data and programs must be in the
primary memory for execution. Random Access Memory (RAM)
and Read Only Memory (ROM) are both primary memory.

Pen drive
 MEMORY……
• Random Access Memory refers to memory that can be selected and used
randomly. The information stored here disappears the very moment the
machine is turned off
• It is also referred to as volatile memory.
• Read Only Memory is permanently built into the computer at the time of
production
• The information from this memory can only be read and it is not possible to
write fresh information into it
• It permanently stores a set of instructions which instructs the computer how to
work
• After we switch on the computer, it uses instructions stored here to carry out a
series of tasks automatically, before we can actually use the computer.
 (CONTD..) MEMORY
• Secondary Memory or Auxiliary Memory: The content on the
RAM is erased when electric power is switched off
• So, it becomes necessary to store this data for future use, somewhere
else
• Since, primary storage is expensive too; we need a relatively cheaper
form of backup storage which can store vast quantities of information
• Thus, Secondary Memory devices become an important part of the
computer.
 1.4. Basics of Microsoft office

 What is the basic MS Office function? Microsoft Office is a collection of

applications and each application has a unique purpose and requirement.

 Thus, the basic function of MS office is to allow all these applications to run in the
system and help us create meaningful documents.
 Cont….

 Each of the applications in Microsoft Office serves as specific knowledge or office

domain such as:
1. Microsoft Word: Helps users in creating text documents.
2. Microsoft Excel: Creates simple to complex data/numerical spreadsheets.
3. Microsoft PowerPoint: Stand-alone application for creating professional
multimedia presentations.
4. Microsoft Access: Database management application.
5. Microsoft Publisher: Introductory application for creating and publishing
marketing materials.
6. Microsoft OneNote: Alternate to a paper notebook, it enables an user to neatly
organize their notes.
 1.4.1. Important Features of Ms-Word

 Some of the important features of Ms-Word are listed below:

i) Using word you can create the document and edit them later, as and when required, by adding
more text, modifying the existing text, deleting/moving some part of it.

ii) Changing the size of the margins can reformat complete document or part of text.

iii) Font size and type of fonts can also be changed. Page numbers and Header and Footer can be
included.

vi) Tables can be made and included in the text.

vii) Word also allows the user to mix the graphical pictures with the text.
 Cont….

viii) Word also has the facility of macros. Macros can be either attached to some
function/special keys or to a tool bar or to a menu.

ix) It also provides online help of any option.

x) Spelling can be checked and correction can be made automatically in the entire
document.

xi) Text can be formatted in columnar style as we see in the newspaper. Text boxes can
made.
 1.4.2. Introduction to Ms-Power Point

 A PowerPoint presentation is a presentation created using Microsoft PowerPoint

software.

 The presentation is a collection of individual slides that contain information on a

topic.

 Microsoft PowerPoint is a software product used to perform computer based

presentations.
 1.4.3. Introduction to Ms-Excel
 Microsoft Excel is a general-purpose electronic spreadsheet used to organize, calculate, and
analyze data.
1.4.3.1. Excel Features
 Some of the main features are:
 AutoFormat: lets you to choose many preset table formatting options.
1. AutoSum: helps you to add the contents of a cluster of adjacent cells.
2. List AutoFill: automatically extends cell formatting when a new item is added to the end of
a list.
3. AutoShapes toolbar: will allow you to draw a number of geometrical shapes, arrows,
flowchart elements, stars and more.
4. Drag and Drop: feature will help you to reposition the data and text by simply dragging the
data with the help of mouse.
  Cont…

5. Charts: will help you in presenting a graphical representation of your data in the
form of Pie, Bar, Line charts and more.
6. PivotTable: flips and sums data in seconds and allows you to perform data
analysis and generating reports like periodic financial statements, statistical reports,
etc.
 You can also analyse complex data relationships graphically.
7. Shortcut Menus: commands that are appropriate to the task that you are doing
appear by clicking the right mouse button.
 Chapter 2
Introduction to Statistical Package

2.1. What is a statistical package?

 collections of software designed to aid in statistical analysis and data exploration.

 The vast majority of quantitative and statistical analysis relies upon statistical packages
 Software package
 Software package may refer to one or more of the following:
 A piece of application software or utility software. A software suite or collection of related
application or utility software.
 A package or module, a software component for accomplishing a particular thing
 Package a file used by a package management system to install an application or library.
 Cont…

 Application software applies the power of a particular computing platform or system

software to a particular purpose.

 Some applications are available in versions for several different platforms; others have
narrower requirements and are thus called, for example, a Geography application for
Windows or an Android application for education.

 Sometimes a new and popular application arises which only runs on one platform,
increasing the desirability of that platform. This is called a killer application.
 Cont…

 Comprehensive vs. specialized software packages

 Specialized software is software that is written for a specific task rather for a broad
application area.

 These programs provide facilities specifically for the purpose for which they were
designed.

 Statistical software is specialized computer programs for statistical analysis.

 2.2. Features of packages (Stata ,SPSS and Eviews , ,)

 Stata: is a general-purpose and comprehensive statistical software package created in

1985 by StataCorp.

 Most of its users work in research, especially in the fields of economics, sociology,
political science, biomedicine and epidemiology.

 Stata's capabilities include data management, statistical analysis, graphics,

simulations, and custom programming.

 The name Stata is a portmanteau of the words statistics and data.

 Cont…..

 There are four major builds of each version of Stata:

 Stata/MP for multiprocessor computers (including dual-core and multicore

processors);

 Stata/SE for large databases;

 Stata/IC, which is the standard version; and

 Small Stata, which is a smaller, student version of educational purchase only.

  SPSS Statistics:

 SPSS is among the most widely used programs for statistical analysis in social
science.
 It is used by market researchers, health researchers, survey companies,
government, education researchers, marketing organizations, and others.
 SPSS varies from other statistical packages in its modular construction.
 SPSS can be customized in a sense to any particular data file or analysis
application.
 For example, insurance industry researchers may need results displayed in
geographical terms.
 EViews:
 EViews (Econometric Views) is a statistical package for Windows, used mainly
for time-series oriented econometric analysis.

 It is developed by Quantitative Micro Software (QMS).

 The current version of EViews is 8.0, released in March 2013.

 2.3. General description of the package
 Some of the most commonly applied software packages in Agro-economics and related social
sciences are described hereunder. 
 R: is a free software programming language and a software environment for statistical
computing and graphics.
 The R language is widely used among statisticians and data miners for developing statistical
software and data analysis.
 R is named partly after the first names of the first two R authors (Ross Ihaka and Robert
Gentleman) and partly as a play on the name of S programming.
 The source code for the R software environment is written primarily in C, FORTRAN, and R.
 R is freely available under the GNU General Public License, and pre-compiled binary versions
are provided for various operating systems.
 R is a popular programmable open source statistical package that can execute scripts.
 GAUSS:
 GAUSS is a matrix programming language for mathematics and statistics, developed
and marketed by Aptech Systems.
 Its primary purpose is the solution of numerical problems in statistics, econometrics,
time-series, optimization and 2D- and 3D-visualization.
 GenStat:
 GenStat is a general statistical package.
 Early versions were developed for large mainframe computers.
 Later versions are available for the Windows environment only.
 Examples of users who qualify are students and lecturers of universities and staff of
government research organizations or NGOs.
 IBM SPSS Statistics:

 SPSS Statistics is a software package used for statistical analysis.

 It is now officially named "IBM SPSS Statistics".

 Companion products in the same family are used for survey authoring and deployment
(IBM SPSS Data Collection), data mining (IBM SPSS Modeler), text analytics, and
collaboration and deployment.
 LIMDEP:
 LIMDEP is an econometric and statistical software package with a variety of estimation tools.
 It is a comprehensive econometrics and statistics package.
 In addition to the core econometric tools for analysis of cross sections and time series, LIMDEP
supports methods for panel data analysis, frontier and efficiency estimation and discrete choice
modeling.
 Mathematica:
 Mathematica is a computational software program used in many scientific, engineering,
mathematical and computing fields.
 It was conceived by Stephen Wolfram and is developed by Wolfram Research of Champaign.
 MATLAB:

 MATLAB (matrix laboratory) is a numerical computing environment and fourth-

generation programming language.

 Developed by MathWorks, MATLAB allows matrix manipulations, plotting of

functions and data, implementation of algorithms, creation of user interfaces, and
interfacing with programs written in other languages.

 MATLAB users come from various backgrounds of engineering, science, and

economics.

 MATLAB is widely used in academic and research institutions as well as

industrial enterprises.
 Minitab:
 Minitab is a general statistics package.

 It was developed at the Pennsylvania State University by researchers group in 1972.

 Minitab is distributed by Minitab Inc, a privately owned company headquartered in State

College, Pennsylvania, with subsidiaries in England, France and Australia

 Minitab 16 is the latest version of the software.

RATS:
 RATS (Regression Analysis of Time Series) is a statistical package for time series analysis and
econometrics.
 It is a software package. comprehensive econometrics and time series analysis
 SAS:
 SAS (pronounced "sass", originally Statistical Analysis System) is an integrated system
(comprehensive) statistical package of software products provided by SAS Institute Inc.,
which enables programmers to perform:
 Information retrieval and data management;
 Report writing and graphics;
 Statistical analysis, econometrics and data mining;
 Business planning, forecasting, and decision support;
 Operations research and project management;
 Quality improvement;
 Applications development;
 Data warehousing (extract, transform, load); and
 Platform independent and remote computing.
 Statgraphics:
 Statgraphics is a statistics package that performs and explains basic and advanced statistical
functions.
 STATGRAPHICS Online is a statistical package that runs within a web browser.
 Users can enter data directly into the data editor or import data from text files, Excel files, or
other formats.
STATISTICA:
 STATISTICA is a comprehensive statistics and analytics software package developed by
StatSoft.
 STATISTICA provides data analysis, data management, statistics, data mining, and data
visualization procedures.
 STATISTICA product categories include Enterprise, Web-Based (for use with a server and web
browser), Concurrent Network Desktop, and Single-User Desktop.
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