Business Statistics 4

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Simple Random Sampling

Simple random sampling is a sampling technique where every item in the population has an even
chance and likelihood of being selected in the sample.

Example

 The names of 25 employees being chosen out of a hat from a company of 250 employees.
In this case each employee has an equal chance of being chosen.
 At a birthday party, teams for a game are chosen by putting everyone’s name into a jar,
and then choosing the names at random for each team.

Application of Simple Random Sampling

Application of simple random sampling method involves the following stages:

1. A list of all members of population is prepared. Each element is marked with a


specific number (suppose from 1 to N).
2. N items are chosen among a population size of This can be done either with the
use of random number tables or random number generator software. The latter
option is more preferable as the selection of random samples can be aided by
software such asResearch Randomizer and Stat Trek. In this way researcher bias
can be minimized.

Systematic Sampling
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The random sampling method that requires selecting samples based on a system of intervals in a


numbered population.In systematic sampling every Nth member of population is selected to be
included in the study. It is a probability sampling method. It has been stated that “with systematic
sampling, every Kth item is selected to produce a sample of size n from a population size of
N”[1]. Systematic sampling requires an approximated frame for a priori but not the full list.

Example
 Ali can give a survey to every fourth customer that comes in to the movie theater.
 In a population of 10,000 people every 100th person is selected.

Application of Systematic Sampling

You can apply systematic sampling in your thesis in the following manner:

1. Label each member of the sample group with a unique identification number (ID).

2. Calculate the sampling fraction by dividing the sample size to the total number of the
population:

Systematic Sampling

3. The first sample has to be chosen in a random manner.


4. Additional members of sample group are chosen by recruiting each Nth subject
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Stratified Sampling

Stratified random sampling is a method of sampling that involves the division of a population


into smaller groups known as strata. In stratified random sampling or stratification, the strata are
formed based on members' shared attributes or characteristics.

Example

 Dividing adults in subgroups by age.


 Selecting people on the basics of race, gender.

Application of Stratified Sampling


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Proportionate Stratified Random Sampling

The sample size of each stratum in this technique is proportionate to the population size of the
stratum when viewed against the entire population. This means that the each stratum has the
same sampling fraction.

For example, you have 3 strata with 100, 200 and 300 population sizes respectively. And the
researcher chose a sampling fraction of ½. Then, the researcher must randomly sample 50, 100
and 150 subjects from each stratum respectively.

Stratum A B C
Population Size 100 200 300
Sampling Fraction ½ ½ ½
Final Sample Size 50 100 150

The important thing to remember in this technique is to use the same sampling fraction for each
stratum regardless of the differences in population size of the strata. It is much like assembling a
smaller population that is specific to the relative proportions of the subgroups within the
population.

Disproportionate Stratified Random Sampling

The only difference between proportionate and disproportionate stratified random sampling is
their sampling fractions. With disproportionate sampling, the different strata have different
sampling fractions.

The precision of this design is highly dependent on the sampling fraction allocation of the
researcher. If the researcher commits mistakes in allotting sampling fractions, a stratum may
either be overrepresented or underrepresented which will result in skewed results.
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Cluster Sampling
TheProcess of randomly selecting intact groups, not individuals, within the defined population
sharing similar characteristics.Clusters are locations within which an intact groups of members
of the population can be formed.

Example: Cities, Districts

Application of Cluster Sampling


Imagine you want to evaluate consumer spending on various modes of transportation in Greater
London. Since Greater London is a large area, we need to sample from only 6 boroughs out of
total 32 boroughs it comprises.

There are three stages for the application of cluster sampling:

1. Select a cluster grouping as a sampling frame. In example above, all 32 boroughs of


the Greater London represent the sampling frame for the study
2. Mark each cluster with a unique number. We can easily number each borough from 1
to 32.
3. Choose a sample of clusters applying probability sampling. Usingsystematic random
sampling (or any other probability sampling), we can choose 6 boroughs from the total 32
boroughs. Households residing in 6 boroughs will represent samples for the study.
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Convenience Sampling
A convenience sample is a type of non-probability sampling method where the sample is taken
from a group of people easy to contact or to reach.

Example

 Standing at a mall or a grocery store and asking people to answer questions.


 A top company wants to establish its offices in other cities, they will select that cities
which are close to their main office.

Application of Convenience Sampling

Convenience sampling is applied by brands and organizations to measure their perception of


their image in the market. Data is collected from potential customers to understand specific
issues or manage opinions of a newly launched product. In some cases, it is the only available
option. For example, a university student working on a project and wants to understand the
average consumption of soda on campus on a Friday night will most possibly call his/her
classmates and friends and ask them how many cans of soda they consume. Or may go to a party
nearby and conduct an easy survey. There is always a chance that the selected population may
not represent the population of interest accurately, thus increasing the chances of bias.
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Snowball Sampling
Snowball sampling is where research participants recruit other participants for a test or study.

Example
 People who have many friends are more likely to be recruited into the sample.

Application of Snowball Sampling

Snowball sampling is where research participants recruit other participants for a test or study.
It is used where potential participants are hard to find. It’s called snowball sampling because
(in theory) once you have the ball rolling, it picks up more “snow” along the way and
becomes larger and larger.

Snowball sampling consists of two steps:

1. Identify potential subjects in the population. Often, only one or two subjects can
be found initially.
2. Ask those subjects to recruit other people (and then ask those people to recruit.
Participants should be made aware that they do not have to provide any other names.
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Maximum Variation Sampling


It is when you select individuals that differ on a certain characteristics. In this strategy you
should first identify the characteristics and then find individuals or sites which display that
characteristics.
Example
 A researcher is conducting a door to door survey to find attitudes towards single
parents.
 A researcher is investigating why people don't complete their prescribed course of
antibiotics and thinks that socioeconomic class may be a reason.

Application of Maximum Variation Sampling


A maximum variation sample contains cases that are purposefully as different from each other as
possible. This type of sampling is useful for examining range in large national or global
programs.Choosing sites that vary as much as possible along each of the criteria will allow the
evaluator to investigate the particularities of each case as well as patterns that are shared across
the variation.For example, In order to develop the sample, the evaluator must develop key
criteria for identifying difference. For an agricultural research program, variation criteria may
include: climate, soil features, rainfall, farming patterns, and level of government support.
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Typical Sampling
It is when you study a person or a site that is unfamiliar with the situation.
Example
 A teacher teaching in a college or university for 25 years.
 A person doing job in a same company for 5 years.

Theory/ concept Sampling


The process of data collection for generating theory whereby the analyst jointly
collects, codes and analyses his data and decides what data to collect next and where
to find them in order to develop his theory as it emerges.
Example
 Interviewing participants with open-ended questions.
 Participant’s observation (field work).

Homogeneous Sampling
 All the items in the sample are chosen because they have similar or identical
traits.
Example
 People in a homogeneous sample might share the same age.

Critical Sampling
Critical case sampling is where you collect samples that are most likely to
give you the information you're looking for.
Example
 Newton founded the laws of motion.

Opportunistic Sampling
Opportunistic Sampling is a type of nonprobability sampling where participants are selected
based on naturally occurring groups.

Example
 Student coming out of library.

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