In a November 1974 analysis of professional employment in the Bureau of the Census and the Bureau of Economic Analysis, 14.0% of the professionals were in GS-5-7, 44.9% in GS-9-12, 31.7% in GS-13-14, and 9.4% were GS-15 and above. 70.6% of the GS-5-7 professionals were statisticians, mathematical statisticians, or economists; 63.4% of the GS-9-12 professionals; 64.0% of the GS-13-14 group; and 83.3% of the GS-15 and above group. These statistics show that a larger percent of the entry level professionals were statistical professionals or specialists than those at the GS-9-12 and GS-13-14 levels.

In a January 1975 analysis of GS-14 and above retirements during calendar year 1974 in nine selected agencies (the five major statistical centers, the Bureau of Economic Analysis in Commerce, the Social Security Administration's Office of Research and Statistics in DHEW, the Internal Revenue Service's Division of Statistics in Treasury, and the Federal Reserve Board) in the Federal Statistical System, it was found that replacements had less formal education (38.0% of the retirees had a masters degree or more compared with only 20.0% of the replacements). Also, fewer replacements majored in economics, mathematics or statistics (70.4% of those retired compared with 64.3% of their replacements). These statistics point to the problem of continuing the level of statistical expertise which now exists in the major statistical agencies.

"Comments on Professional Employment at SESA Report." Unpublished memorandum, Executive Office of the President, Office of Management and Budget, November 14, 1975.

Only 15.1% of the Census Bureau and BEA professionals majored in statistics or mathematics, while another 22.4% majored in economics, yielding a total of 37.6% professionals with majors in one of the three areas. The rest had a wide variety of majors with none comprising over 10% except "business and management" (11.7%). In contrast, 70.4% of the retirees with a bachelor's degree or more majored in statistics, mathematics or economics, that is, the statistical personnel with tenure in the statistical system had a seemingly closer match between their academic training and their employment.

Only 23.0% of the Census Bureau and BEA professionals had a master's or higher degree. As many as 17.7% of the professionals had less than a bachelor's degree. Of the retirees 38.0% had a master's or higher degree, that is, a larger proportion than those in the Census Bureau and BEA in November 1974. Only 6.0% of the retirees had a Ph.D. while 10.0% had less than a bachelor's degree. Again, retirees on the average had a higher educational attainment level at the time of their retirement than those remaining in the statistical system. This analysis does not indicate, however, how many of the retirees obtained graduate level degrees at later stages in their employment, a factor which could affect the seeming disparities in educational levels.

Another index of the skill level of statistical personnel is their repertoire of applied skills. Statistical professionals to be most versatile and ready for management responsibility should have experience in all aspects of statistical programs including design, collection, processing, and analysis of statistical data. Many statisticians are not exposed to this diversity of experience. They may, therefore, be limited in their ability to assume management positions or to be fully utilized in their employment in the Federal Statistical System.

Background

Standards for statistical methodology should cover the design, collection, processing, tabulation, analysis, evaluation, and publication of Federal statistical data. The general principles governing these standards are described in the Statistical Policy Handbook published by the Office of Federal Statistical Policy and Standards (OFSPS). The implementation of these principles and their practical applications must take account of the different types of data collected and the purposes which the data are intended to serve. Thus the precise standards of quality which are appropriate for specific bodies of data must be determined by the Federal agency which Sponsors the collection of these data; however, interagency interest must be taken into account. In addition, each sponsoring agency, as well as the col

lection agency in the case of interagency agreements, should be responsible for establishing and maintaining an assessment and monitoring program embracing each of the above phases and covering

both general-purpose and special-purpose statistics, in order to ensure that the prescribed standards are followed and that problems which arise can be identified and addressed within the agency before the data in question are released to the public. This assessment program must include a review of the methodology employed and the underlying concepts

and definitions.

Published OFSPS Standards

The Statistical Policy Handbook has as its purpose to establish uniform statistical standards and guidelines for the collection and compilation of statistical data and for the release and publication of Federal statistics." The Handbook states that "... the standards and guidelines prescribed by the Directives are to be followed by agencies in the executive branch of the Federal Government and by federally sponsored contractors and grantees in the direct collection, compilation, and publication of statistical

data." This follows the legislative philosophy of Section 103 of the Budget and Accounting Procedures Act of 1950 which states that the established statistical standards shall be followed by the agencies.

The following Directives of the Statistical Policy Handbook give standards relevant to statistical methodology:

-Directive No. 1-Standards for Statistical
Surveys;

-Directive No. 2-Standards for the
Publication of Statistics;

-Directive No. 11-Standard Data Source for
Statistical Estimates of Labor Force and
Unemployment;

-Directive No. 13-Standard Data Source of
Total Population Used in Distributing
Federal Benefits; and

-Directive No. 15-Race and Ethnic Standards
for Federal Statistics and Administrative Re-
porting.

Directive No. 1 of the Handbook, Standards for Statistical Surveys, establishes the need for a clear purpose of the survey, as well as the development of the various aspects of the survey plan, the questionnaire and the preparation of the final report. Among the standards established are (1) that samples of the universe should be probability samples and (2) that "...if probability sampling is used, sampling error should be estimated...." Nonsampling errors should also be considered in establishing proper controls of the survey operations and evaluated to the extent possible.

Directive No. 2, Standards for the Publication of Statistics, states that "...full information should be available to users about sources, definitions, and methods used in collecting and compiling statistics, and their limitations." This latter standard establishes that "...there should be available to the user an appraisal of the statistics which would make it possible to evaluate their appropriateness for any intended use."

Directive No. 11, on statistical estimates of labor force and unemployment, designates official estimates for these statistics.

Directive No. 13 designates specific data series on population prepared by the Bureau of the Census to be used for distributing Federal benefits. The importance of this standard is that the selected official series must be used by any program which uses population statistics in distributing Federal funds. The methodology used to derive these official estimates thus becomes very important.

Directive No. 15 provides standard classifications

race and ethnicity for use in Federal administrative reporting and statistical activities. Examples of Individual Agency Standards

In March 1974, the Bureau of the Census issued Technical Paper 32 (TP 32), Standards for Discussion and Presentation of Errors in Data. A memorandum from the Director of the Bureau of the Census to all Divisions and offices when TP 32 was published stated that "...this publication, the first of its kind, formalizes and extends practices which the Bureau has for some years followed in recognition of its responsibility for informing users of important limitations in its data. ...Flexibility in applying the standards will be needed to take account of different forms of publication, including press releases and distribution of unpublished data in either computer readable or hard copy form, and of limitations of our knowledge and techniques...."

These standards for presentation of errors were used as background material for six seminars held in 1974 under the sponsorship of the Statistical Policy Division of OMB to discuss the responsibility of producers of statistics to inform the users of the limitations of the data published. The standards cover both sampling errors and nonsampling errors and recognize that the total error is larger than the published sampling errors. Although these standards are not official standards, they can be useful as guidelines to agencies preparing statistical reports in informing users on the limitations of the data.

The National Center for Health Statistics (NCHS) has prepared a Manual on Standards and Procedures for Reviewing Statistical Reports, which is used internally for reviewing statistical statements in reports on the Vital and Health Statistics series. The material in this manual serves as a guide to NCHS personnel involved in reviewing statistical text statements. Another section of the manual gives examples of sampling errors for specific NCHS surveys and procedures for calculating sampling errors of certain derived statistics.

In addition to formalized standards on statistical methodology, agencies have self-imposed standards which influence the quality of the data. For example, any survey done by the Bureau of the Census for another Federal agency will be carried out in accordance with the Census Bureau's standards and expertise. The same is true for surveys conducted for other agencies by the statistics unit of the Economics, Statistics, and Cooperatives Service of the Department of Agriculture.

Another example is the standards which the NCHS imposes on the States for the collection of data on vital registration (births and deaths) and other information obtained through the Cooperative Health Statistics System. These standards are not applied uniformly by all States. (This problem is discussed in greater detail in the chapter on FederalState-local cooperative systems of data collection.)

Office of Federal Statistical Policy and Standards Functions

The three functions of the OFSPS which relate directly to the establishment and maintenance of standards for statistical methodology are clearance of statistical surveys, statistical policy coordination, and legislative review. OFSPS is responsible for reviewing and clearing any statistical survey which falls within the purview of the Federal Reports Act of 1942 as amended. In reviewing these proposed projects, OFSPS follows the standards for statistical methodology which have been established; therefore, the clearance function of OFSPS is one means whereby the application of the standards can be monitored. In carrying out its statistical policy coordination function, OFSPS can, in addition, inform particular agencies of the standards to be followed in conducting particular surveys or statistical operations and can provide for an exchange of relevant experience and information. Finally, in reviewing proposed legislation in terms of its implications for statistical data requirements, OFSPS plays an important role in determining the specific data requirements, the best means for collecting these data, and the appropriate formulas to be employed in deriving the particular measures called for in the legislation.

Federal Committee on Statistical
Methodology

A major current effort to develop improved standards for statistical methodology is the work of the Federal Committee on Statistical Methodology (FCSM), chaired by the Office of Federal Statistical Policy and Standards. The members are selected

because of their recognized expertise in the area of statistical methodology. The FCSM has formed subcommittees to investigate specific areas. During 1976, five subcommittees of the FCSM were established to address the following selected areas of

concern:

1. Statistics for allocation of Federal funds to local areas.-The study of the programs which allocate Federal funds to local areas is designed to determine the appropriate guidelines to be followed in prescribing the statistics and formulas to be used in allocating program funds. An additional topic being investigated by this subcommittee is the possible effect of statistical adjustments of biased data in improving the allocation of funds. A Report on Statistics for Allocation of Funds prepared by this subcommittee was published as Statistical Policy Working Paper 1 by OFSPS. This report includes recommendations concerning the data and formulas used for the distribution of Federal funds to State and local areas.

2. Problems of data disclosure.-This study aims at suggesting guidelines to be followed by agencies in releasing data in the form of statistical tables and microdata files without violating confidentiality restrictions. A Report on Statistical Disclosure and DisclosureAvoidance Techniques prepared by this subcommittee was published as Statistical Policy Working Paper 2 by OFSPS. This report includes recommendations on disclosureavoidance techniques in tabulations and microdata files, as well as the effects of disclosure on data subjects and users.

3. Matching data records.-In this study, alternative methods of matching data files from different sources are being investigated from the point of view of confidentiality requirements. The study is focused on matching techniques for data from different Federal agencies for which access at the individual record level is restricted.

4. Nonsampling errors.-This study seeks to assemble illustrative information concerning sources and types of nonsampling error affecting a number of key Federal statistical programs. The study developed an "error profile" for employment statistics derived from the Current Population Survey. Additional error profiles based on selected Federal statistical series would illustrate further this approach. A glossary of terms

related to nonsampling errors is also being prepared.

5. Standards for Federal-State-local cooperative systems of data collection.-This study addresses the development of appropriate standards for these cooperative data collection systems. This topic is discussed in a separate chapter of the Framework.

During 1977, two new subcommittees were established to address the following topics:

1. Contracting statistical surveys.-The process by which Federal contracts are established and monitored will be reviewed. The goal is to establish guidelines that would improve the quality of statistical data obtained through

contracts.

2. Statistical uses of administrative records.-Uses of administrative records for statistical purposes will be investigated to determine advantages and limitations of such procedures. The work of the FCSM and its subcommittees should serve as a focal point for the development of standards for Federal statistics. The promulgation of the standards is the continuing responsibility of OFSPS in its coordinating and policy role. The implementation of these standards, however, must remain the responsibility of the particular agencies which produce the statistics in question. In addition, agencies which sponsor statistical data collection. efforts must monitor the design and implementation of these efforts to assure adequate quality of data produced.