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Accuracy and reliability

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Short Term Statistics, Business Statistics
Morten Skovrider Kollerup
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msl@dst.dk

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Manufacturers’ Purchases of Goods and Services

The statistics have a quality concerning the description of purchases by the covered enterprises, i.e. enterprises with at least 50 employees or a yearly turn over of at least 100 million DKK. It can be considered a lack in quality that purchases by smaller enterprises are not included, as these purchases are presumably different from purchases of the largest enterprises.

The statistics do not cover the entire Manufacturing industry, but only enterprises with over 50 employees or an annual turnover of DKK 100 million. DKK and thus cannot say anything about the smaller enterprises' purchases, as their purchases must be assumed to be different. The detailed distribution of the individual commodity codes is subject to some uncertainty, as these are often based on an estimate. The total purchase for the covered enterprises is less uncertain, as only less than 2 per cent of responses are missing and last year's purchases figures are used for these enterprises.

Overall accuracy

The statistics do not cover the entire manufacturing industry, but only enterprises with more than 50 employees or a turnover of more than DKK 100 million. DKK and thus cannot say anything about the smaller enterprises' purchases of goods and services. The most important error source is the detailed distribution of purchases according to commodity codes as this is not always directly available from enterprises' accounting systems. Reports are therefore in many cases based on rough estimations by the respondents.

Sampling error

Not relevant for these statistics.

Non-sampling error

The statistics do not cover the entire manufacturing industry, but only enterprises with more than 50 employees or a turnover of more than DKK 100 million. DKK and thus cannot say anything about the smaller enterprises' purchases of goods and services. The most significant source of uncertainty is the detailed breakdown of commodity codes for the purchase, as this cannot always be retrieved from the enterprises' accounting systems. The reports are therefore in many cases based on estimated distributions of the most important product types. The response rate is 96,6 percent, where it is primarily smaller enterprises that are missing, as the notification procedure concentrates on the largest enterprises. When an enterprise is missing, its purchases will in many cases be imputed by copying their purchases from last year. Any development in purchases for these enterprises will thus not be captured.

Quality management

Statistics Denmark follows the recommendations on organisation and management of quality given in the Code of Practice for European Statistics (CoP) and the implementation guidelines given in the Quality Assurance Framework of the European Statistical System (QAF). A Working Group on Quality and a central quality assurance function have been established to continuously carry through control of products and processes.

Quality assurance

Statistics Denmark follows the principles in the Code of Practice for European Statistics (CoP) and uses the Quality Assurance Framework of the European Statistical System (QAF) for the implementation of the principles. This involves continuous decentralized and central control of products and processes based on documentation following international standards. The central quality assurance function reports to the Working Group on Quality. Reports include suggestions for improvement that are assessed, decided and subsequently implemented.

Quality assessment

The statistics have a reasonable quality concerning the description of purchases by the covered enterprises, i.e. enterprises with at least 50 employees or a yearly turn over of at least 100 million DKK. It can be considered a lack in quality that purchases by smaller enterprises are not described, as these purchases are presumably are different from purchases of the largest enterprises.

Data revision - policy

Statistics Denmark revises published figures in accordance with the Revision Policy for Statistics Denmark. The common procedures and principles of the Revision Policy are for some statistics supplemented by a specific revision practice.

Data revision practice

Data are final with the first publication.