JIGJIGA UNIVERSITY

SCHOOL OF GRADUATE STUDIES

DEPARTMENT OF ACCOUNTING AND FINANCE
RESEARCH METHODS

by

Dr. Abenet Yohannes (Ph.D.)

 Learning Objectives
– Explain the role of sampling in the research process.

– Distinguish between probability and non-probability

sampling.

– Understand the factors to consider when determining

sample size.

– Understand the steps in developing a sampling plan.

 Presentation Outline
– Concept of sampling

– Sampling terminology

– Reasons for sampling

– Determining the appropriate sample and size

– Developing a sampling plan

– Types of sampling methods

– Conclusions
 Introduction
– Census is a count of the entire populations.

– Population is a large or entire group of individuals,

objects, or events.

– Sample is a smaller portion drawn from a population.

– Sampling Frame is the list of items from which you

can select a sample.

– Sampling Unit is the elementary units as a basis of

sampling process.
 What is Sampling?
Sampling is the process of selecting a small number of elements
from a larger defined target group of elements such that the
information gathered from the small group will allow judgments /
inferences to be made about the larger group.

▪Sampling seeks to answer the following questions:

✓ What is your target population?

✓ Is the sample appropriate?

✓ Is the sample available?

✓ What sampling method will you use and why?

 Sampling Terminology
▪ Sampling Design: The whole process of specifying the target
population, determining the sampling frame, selecting the
sampling method, determining the sample size, selecting &
validating the sample.

▪ Population (Target or study): The entire set of relevant units of

analysis that possess the information sought by the researcher
and about which inferences are to be made.
Example:
• A POPULATION may be-

– Hospital patients, Road accidents, Car owners, All adult population

of the AA etc.
 Terminology Cont…
▪ Sampling Frame: A list or set of directions for identifying all
elements in a study population.

▪ It is simply a list of the study population.

Example:
▪ Telephone book ,

▪ Map,

▪ Postcode Address File,

▪ The Electoral Register,

▪ Telephone Directories etc.

 Terminology Cont…
▪ Sampling Unit: An element, or a unit containing the element, of
the study population.
Example:
❑Blocks, Households, and Individuals within the households.
▪ Sample (size): The number of elements to be included in a study.
▪ Parameter: The summary description of a given variable in a
population.
▪ Statistic: A characteristic of a particular value of the sample.
Example:
❑Median income
 Reasons for Sampling
Cost – saves time and money as opposed to census.

Timeliness – results needed quickly vis-à-vis time

constraints preventing survey of entire population.

Finite Population – impractical to survey the overall

population if populations infinitely large.

Accuracy – usually enables more accurate

measurements since sampling conducted by trained
and experienced investigators.
 Criteria for Appropriate Sample & Sample Size
▪ Optimum sample size relative to target population size neither
excessively too large nor too small, however, the larger the
sample size the better.
▪ The following Criteria need to be specified -
representativeness, reliability, flexibility; and Budget
▪ These come through -
▪ level of precision
▪ level of confidence or risk
▪ degree of variability
Criteria for Appropriate Sample & Sample Size Cont…

▪ The level of precision (sampling error) in estimating the population

characteristic under study involves sampling error, is the range in
which the true value of the population is estimated to be.
▪ Example:

▪ If a researcher finds that 60% of business in the sample have

adopted a recommended accounting practice with a precision rate of
±5%.

▪ Then he or she can conclude that between 55% and 65% of business
in the population have adopted the suggested practice.
 Criteria Cont…
▪ The level of confidence or risk –The confidence level tells you how sure
you can be – about the true percentage of the population who would
pick an answer lies within the confidence interval.
▪ It is expressed as a percentage.

– The 95% confidence level means you can be 95% certain;

– The 99% confidence level means you can be 99% certain.

– Most researchers use the 95% confidence level.

▪ Example:

▪ For example, a confidence interval of 90% means that results of an

action will probably meet expectations 90% of the time.
 Criteria Cont…
▪ The degree of variability in the attributes being measured - allowable sampling error –
i.e. small sampling errors affecting degree of variability.
▪ The more heterogenous a population the larger the sample size and vice versa.

Because a proportion of .5 indicates the maximum variability in a population, it is often

used in determining a more conservative sample size, that is, the sample size may be
larger than if the true variability of the population attribute were used.

▪ Example:
▪ Note that a proportion of 55% indicates a high level of variability than either 10% or
80%.

▪ This is because 10% and 80% means that a large majority does not or does,
respectively, have the attribute under consideration.
▪
 Sampling & Non-sampling Errors
Sampling error

Difference between sample characteristics (e.g. sample mean) and actual

population characteristics (e.g. population mean) can be attributed to errors in
the sampling process.

▪ Sources: Imperfect sample or size, variations in the population, sample

omissions, inappropriate sampling methods.

Non-sampling error

An error attributed to sources other than sampling and that can be random or
non-random.

▪ Sources: Data preparation errors, invalid or biased questions, inaccurate

answers provided by respondents, inappropriate interview methods and
administration, definitional and response differences.
 Calculating the Sample Size
z = The standard normal variable at a required level of confidence
(standard normal deviation).

p = The proportion in the target population estimated to have

characteristics being measured.

q = 1-p

d = The level of statistical significance set.

If there is no estimate available of the proportion in the target
population assumed to have the characteristics of interest,
50% should be used.
 Calculating the Sample Size if N≥10,000
▪ p = the proportion in the target
Z2 pq
population estimated to have
n = ---------
d2 characteristics being measured.

▪ q = 1-p
Where:
▪ d = the level of statistical
n = The desired sample size.
significance set.
z = The standard normal variable at a If there is no estimate available of
required level of confidence
the proportion in the target
(standard normal deviation).
population assumed to have the
characteristics of interest, 50%
should be used.
 Calculating the Sample Size (Cont…)
Example:

If the proportion of a target population with a certain characteristic is

.50, the z statistic is 1.96, and we desire accuracy at .05 level, then the
sample size is:

(1.96)2 (.50)(.50)
n = -----------------------
(.05)2

n = 384

The rule of thumb, however, is that sample size should not be less than 30.
 Calculating the Sample Size if N<10,000
fn =
n
Where,
(1+ n/N )

fn = The desired sample size when the population is less than 10,000

n = The sample size when the population is more than

10,000 (as calculated in previously in slide )

N = The estimated population size

 Common Levels of Confidence

Commonly used confidence levels are 90%, 95%, and 99%

Confidence Level Confidence Coefficient, 1−  z value, z/2

80% .80 1.28
90% .90 1.645
95% .95 1.96
98% .98 2.33
99% .99 2.58
99.8% .998 3.08
99.9% .999 3.27
 Developing a Sampling Plan
▪ Define the population of interest or investigation.

▪ Procure an accurate and complete list of the units (sampling

frame) in the population.

▪ Draw representative units from the list using sampling method.

▪ Obtain a sufficiently large sample to represent the

characteristics of the population (appropriate sample size).

▪ Define the sample size.

▪ Execute the sampling plan.

 Types of Sampling Methods

PROBABILITY NON-PROBABILITY
Sampling Sampling

1. Simple Random 1. Convenience

2. Systematic 2. Purposive

3. Stratified 3. Snow Balling

4. Cluster 4. Quota
(Multi-stage)
 Probability Sampling
Probability sampling is a sampling technique where
the chance of a unit /element being selected for the
sample is ‘known’ (by its exact probability or by
statistical estimates).
 1. Simple Random Sampling
▪ A basic probability sampling design.

▪ Every member / element of the population has an equal

and independent chance of being selected.

▪ It requires a listing of the total research population.

▪ Randomness can be accomplished by either lottery or

table of random numbers. Mechanical process could
also be used.
 How to Select a Simple Random Sample?
For example:
Suppose you would want to chose 30 schools out of 100
schools in Addis Ababa.
✓ Number all the 100 units in the population.

✓ Place corresponding numbers on slips of paper.

✓ Place all slips in a container or box and mix thoroughly.

✓ Draw a slip and record the number on the sheet.

✓ The process can be repeated till the required sample is obtained.

Random number generator / computer, tables can also be used.

 2. Systematic Sampling
The sample is arrived at by first selecting a random starting point and then
picking every i th element in succession from the sampling frame.

▪ Starts with a randomly selected element, thereafter,

▪ Every i th element in a randomised population frame is selected for

inclusion in the sample.

▪ Rule of thumb in deciding sampling interval is to divide the total

population by the sample size.

▪ i th = N/n

▪ Easy, convenient and less costly sampling method.

▪ Not convenient for hidden cases i.e. study of criminals.

 How to Select a Systematic Sample?
✓ Sample is obtained by taking the i th unit in the
population after the population units have been
numbered or ordered.

✓ i th unit is defined as the sampling ratio or skip interval,

i.e. the total population divided by the size of the
sample .

i th = N/n (100/20) = 5 (skip interval)

i th = N/n if N = 500 and n =20 then K = 25

 3. Stratified Sampling
A probability sampling technique that involves a two-step process:

▪ Divide or partition the population into homogenous subgroups,

strata or layers.

▪ Elements are selected from each stratum by a random procedure.

The population can be divided according to age, income,

intelligence or sex.

Having done that, a simple random sample can be drawn

from each stratum or layer.
 How to Select a Stratified Sample?
✓ The number of subjects drawn from each stratum depends on
whether the sample is done proportionately or dis-
proportionately.

✓ Proportionate stratified sampling requires that the proportions

of subjects in the sample should reflect the sample in the
population.

e.g.
10,000 voting age adults in a “kebele” 20% illiterate, 60%
primary school, 20% school graduates.
 4. Cluster Sampling –
One-stage & Multi-stage
▪ Involves dividing target population into a sample of “clusters” or sub-
populations that are mutually exclusive and collectively exhaustive in terms of
diversity of respondents (i.e. one-stage).

• One-stage sampling - All of the elements within selected clusters are included
in the sample.

▪ For example: residential blocks, districts, regions and all elements are included in
the sample (i.e. one-stage).

• Multy-stage sampling - A subset of elements within selected clusters are

randomly selected for inclusion in the sample.

▪ For example: when sampling very large populations, such as survey impact of
HIV/AIDs on education sector (provinces, districts, urban-rural, gender, etc).
 How to Select a Cluster Sample (cont…)
• Randomly select zones.
• Randomly select communities.
• Randomly select households.
• Cluster must be selected
randomly with equal probability
of getting selected.
 Non-probability Sampling
▪ Also known as ‘deliberate’ sampling because items are selected
deliberately by the researcher.

▪ The probability of selecting an element into a sample may not be

the same for each element.

▪ Most qualitative studies use non-probability samples because the

focus is on in-depth information and not making inferences or
generalisations.

▪ Has the advantage of time and economy.

 1. Convenience Sampling
▪ Also called accidental, haphazard or volunteer sampling seeking to select
elements primarily convenient to the researcher in explorative studies.

▪ The researcher selects those respondents that are close at hand thus saving
money, time and effort.

e.g. use of students, street respondents, internet surveys, tear-out

questionnaires in newspapers.

▪ Convenience samples not representative of any definable populations so what

is lost in accuracy is gained in efficiency.

▪ There is no basis for arguing that the sample is representative.

e.g. use of college students in psychological studies, street interviews,

internet surveys.
 2. Purposive/Judgemental Sampling
A form of convenience sampling in which population elements are
selected based on the judgement or expertise or creativity of the
researcher.

▪ Hand picking of typical cases with a purpose in mind.

▪ Use of cases / elements that have the required information with

respect to the objectives of the study or elements which are judged
to be representative of the population by researcher.

▪ Criteria for choosing the particular elements should be stated.

▪ The disadvantage is that the results can be biased or skewed.

▪ Appropriate for small universe whose characteristics are well

known.
 3. Snowball / Referral Sampling
▪ Used in circumstances where only very little information about the
subject to be investigated is known or sensitive.

▪ Referrals have demographic and psychographic characteristics more

similar to the persons referring them than would occur by chance.

▪ The researcher picks a small sample which grows bigger and bigger as
the information-flow through referrals to the researcher increases.

▪ Commonly used in observational research and community studies.

i.e. hidden or obscure studies such as fraud, smuggling and land

speculation.
 4. Quota Sampling
▪ Similar to stratified sampling since homogeneous sub-groups or
strata within the research population are sampled.

▪ Objective is to include various sub-groups or quotas of the sample

elements proportionate to and reflecting the characteristics of the
target population such as age, gender, political affiliation or socio-
economic status.

▪ Allows for researcher's judgement or convenience or both.

▪ Very convenient and relatively inexpensive.

▪ Inferences drawn on the basis of this sampling technique can not be

subjected to statistical analysis.
 Conclusions
✓ Sampling allows an optimum trade-off between accuracy of the study findings
and resource constraints.

✓ The greater the sample size, the more accurate will be the estimate of the true
population mean.

✓ Inferences drawn from a sample can be affected by both the size of the sample
and extent of variation in the sampling population.

✓ Sampling designs can be classified as probability and non-probability

dependent on the criteria of element selection and representativeness of the
sample.

✓ The of optimum size the sample depends on the nature of the survey
calculated in terms of the desired representativeness, validity and reliability of
the sample relative to the study population.