Question

What is statistical Discrepancy? How do you compute Statistical Discrepancy from a given

record of transactions?

Answer 1

Statistical discrepancy refers to the minor difference in data values due to difference in their data sources.

For eg the difference between GDP and Gross Domestic Income is known as statistical discrepancy because they must ideally be equal, but are not because of the difference in their data sources.

It is computed by calculating values of 2 equal variables (be it demand or supply or say assets and liabilities) which must be equal in equilibrium and then taking their difference.