THE PAKISTAN DEVELOPMENT REVIEW
Dual Sector Inflation in Pakistan
In this note we point out the importance of using the standard deviation, S, in economic analysis. not merely as an indicator of confidence level for prediction, but also as a basic analytical tool. It is shown that new insights into economic problems may be obtained by giving closer attention to this statistical index, in addition to the other more commonly used indices. If the standard deviation for an economic index is too high. it may be more appropriate to dispense with the one index for the entire sample and break the sample into two or more parts, each of which has a reasonable standard deviation.