A method of analysis that draws conclusions from data rather than general Principles already known is________

1. Analyze the question The question asks for the method of analysis that starts from data or observations and draws conclusions from them, instead of starting from general principles that are already known.

2. Explain the concept

• Deductive reasoning: Moves from general principles to specific conclusions. For example, "Demand falls when price rises. Garri's price has risen, so demand for garri will fall."
• Inductive reasoning: Moves from specific observations or data to general conclusions. For example, "I observed that garri demand fell each time its price rose in many markets, so demand generally falls when price rises."
• Normative reasoning: Deals with value judgments about what ought to be, such as "The government should increase the minimum wage."
• Positive reasoning: Deals with objective statements of fact that can be tested, such as "Unemployment in Nigeria rose last year."

Positive and normative are types of statements or economics, not methods of drawing conclusions from data versus principles. The real contrast here is between deduction and induction.

3. Solution

• The question says the conclusion comes from data, not from general principles already known.
• Using data to build general conclusions is induction.
• Starting from known general principles is deduction, which is the opposite of what the question describes.

So the answer is inductive reasoning.

4. Correct answer: B. Inductive reasoning

5. Exam tip Remember it this way: Induction = Individual cases → general rule (data first). Deduction = Downward from a general rule → specific case (theory first). Also, positive = facts and normative = opinions/values.