The statistical discrepancy is the difference between the two statistics that should be equal. For example, the aggregate output should be equivalent to aggregate income and aggregate expenditure. But, due to differences in calculation methods and incomplete data sources, the three often produce unequal final numbers. Hence, the statistics bureau usually adds it to the final figures so that they are equal.
For example, in the calculation of gross domestic product (GDP), the income approach produces an estimate of 2,000,000, and the expenditure approach is 2,001,000.
To find the discrepancies, first, you should average the GDP from the two approaches: (2,000,000 + 2,001,000) / 2 = 2,000,500.
After that, you can find and calculate the discrepancies of each approach. And the results are as follows:
- Income approach: 2,000,500 -2,000,000 = 500.
- Expenditure approach: 2,000,500-2,001,000 = -500
