Why is the use of secondary data advantageous?

It saves time and cost

The correct answer is Option 2: It saves time and cost

Statistical data can be obtained from two sources. The researcher may collect the data by conducting an enquiry. Such data are called Primary Data, as they are based on first hand information. Suppose, you want to know about the popularity of a filmstar among school students. For this, you will have to enquire from a large number of school students, by asking questions from them to collect the desired information. The data you get, is an example of primary data.

If the data have been collected and processed (scrutinised and tabulated) by some other agency, they are called Secondary Data. They can be obtained either from published sources such as government reports, documents, newspapers, books written by economists or from any other source, for example, a website. Thus, the data are primary to the source that collects and processes them for the first time and secondary for all sources that later use such data. Use of secondary data saves time and cost. For example, after collecting the data on the popularity of the filmstar among students, you publish a report. If somebody uses the data collected by you for a similar study, it becomes secondary data.