Sampling

Sampling Terminology
Sample is a subset, or some part, of a larger population. The purpose of sampling
is to estimate an unknown characteristic of a population. Sampling is defined in terms of
the population being studied.

A population (universe) is any complete group—for example, of people, sales

territories, stores, or college students—that shares some common set of characteristics.
The term population element refers to an individual member of the population.

A census is an investigation of all the individual elements that make up the

population—a total enumeration rather than a sample.

Why Sample?
Pragmatic Reasons
Applied business research projects usually have budget and time constraints. If
Ford Motor Corporation wished to take a census of past purchasers’ reactions to the
company’s recalls of defective models, the researchers would have to contact millions of
automobile buyers. Some of them would be inaccessible (for example, out of the
country), and it would be impossible to contact all these people within a short time
period. Sampling cuts costs, reduces labor requirements, and gathers vital information
quickly. These advantages may be sufficient in themselves for using a sample rather than
a census.
Accurate and Reliable Results
Another major reason for sampling is that most properly selected samples give
results that are reasonably accurate. If the elements of a population are quite similar, only
a small sample is necessary to accurately portray the characteristic of interest.
Destruction of Test Units
Many research projects, especially those in quality-control testing, require the
destruction of the items being tested. If a manufacturer of firecrackers wished to find out
whether each unit met a specific production standard, no product would be left after the
testing.

SAMPLING DESIGN

A sample design is a definite plan for obtaining a sample from a given population.
“It refers to the technique or the procedure the researcher would adopt in selecting items
for the sample.”

CENSUS SURVEY AND POPULATION SURVEY:

Population:All items in any field of inquiry constitute a ‘universe’ or ‘population’.

Census inquiry:A complete enumeration of all items in the population is known as
census inquiry.
This type of inquiry involves a great deal of time, money and energy. When the field of
inquiry is large, this method becomes difficult to adopt because of resources involved.

Government is the only institution which can get the complete enumeration carried out.
Sample:A sample is fraction or subset of population through a valid statistical procedure
so that it can be regarded as representative of entire population.
Sample Survey: In sample survey only a part or a fraction of the population is
investigated.

STEPS IN SAMPLE DESIGN:

 1. Type of universe:
The universe can be
 Finite
 Infinite

2. Sampling Unit:
Sampling unit may be
 Geographical unit
 Construction unit
 Social unit
 Individual

3. Source list:
It contains the names of all items of a universe. (in case of finite universe only)
4. Size of sample:
It refers to the number of items to be selected from the universe to constitute a
sample.
It should neither be excessively large, nor to be small.

5. Sampling procedure:
It refers the technique to be used in selecting the items for the sample.

CHARACTERISTICS OF A GOOD SAMPLE DESIGN:

 Unbiased
 Sufficient
 Efficient
 Consistent
The Sampling Design
Process

Define the target

population:
Once the decision
to sample has been
made, the first
question concerns
identifying the target
population. The target
population is the
collection of elements
or objects that possess
the information sought
by the researcher and
about which
inferences are to be
made. The target
population should be
defined in terms of
elements, sampling
units, extent and time.
  An element is the object about which or from which the information is desired, for
example, the respondent.
 A sampling unit is an element, or a unit containing the element, that is available for
selection at some stage of the sampling process.
 Extent refers to the geographical boundaries.
 Time is the time period under consideration. Important qualitative factors in
determining the sample size are:
 the importance of the decision
 the nature of the research
 the number of variables
 the nature of the analysis
 sample sizes used in similar studies
 incidence rates
 completion rates
 resource constraints

The Sampling Frame:

In practice, the sample will be drawn from a list of population elements that often
differs some what from the defined target population. A list of elements from which the
sample may be drawn is called a sampling frame. The sampling frame is also called the
working population because these units will eventually provide units involved in analysis.
For example, if we want to conduct research on MBA students, sample frame may be
MBA colleges of North India

Determine if a probability or nonprobability sampling method will be chosen:

Select the appropriate sampling technique which will suit the research problem
Plan procedure for selecting sampling units: After deciding the type of sampling
techniques, procedure for selecting sampling unit is decided.

Determine sample size:

Depending upon the nature of population and type of decision, sample size is
estimated. Sample size should be such that it may define the characteristics of population
with small variation.
Select actual sampling units: Then select the sampling units that have been decided.

Conduct fieldwork: Conduct research

Sampling Techniques
 In probability sampling, every element in the population has a known, nonzero
probability of selection. The simple random sample, in which each member of the
population has an equal probability of being selected, is the best-known probability
sample.
In non probability sampling, the probability of any particular member of the
population being chosen is unknown. The selection of sampling units in non probability
sampling is quite arbitrary, as researchers rely heavily on personal judgment.
Non probability Sampling
Convenience Sampling
As the name suggests, convenience sampling refers to sampling by obtaining
people or units thatare conveniently available. Researchers generally use convenience
samples to obtain a large number of completed questionnaires quickly and economically,
or when obtaining a sample through other means is impractical. Similarly, research
looking for cross-cultural differences in organizational or consumer behavior typically
uses convenience samples. Rather than selecting cultures with characteristics relevant to
the hypothesis being tested, the researchers conducting these studies often choose
cultures to which they have access. Convenience samples are best used for exploratory
research when additional research will subsequently be conducted with a probability
sample.

Judgment Sampling
Judgment (purposive) sampling is a non probability sampling technique in which
an experienced individual selects the sample based on his or her judgment about some
appropriate characteristicsrequired of the sample member. Researchers select samples
that satisfy their specific purposes,even if they are not fully representative.The consumer
price index (CPI) is based on a judgmentsample of market-basket items, housing costs,
and other selected goods and services expected toreflect a representative sample of items
consumed Indians. Test-market cities often areselected because they are viewed as typical
cities whose demographic profiles closely match thenational profile.
Advantages
(a) Knowledge of the investigator can be best used in this technique of sampling.
(b) This technique of sampling is also economical.
Disadvantages
(a) This technique is objective.
(b) It is not free from error.
(c) It includes uncontrolled variation.

Quota Sampling
The purpose of quota sampling is to ensure that thevarious subgroups in a
population are represented in the sample to the extent that the investigators
desire.Stratified sampling, a probability sampling procedure describedlater, also has this
objective, but it should not be confused with quota sampling. Inquota sampling, the
interviewer has a quota to achieve. For example, an interviewer in a particularcity may be
assigned 100 interviews, 35 with owners of Sony TVs, 30 with owners of SamsungTVs,
18 with owners of Panasonic TVs, and the rest with owners of other brands. The
intervieweris responsible for finding enough people to meet the quota. Aggregating the
various interviewquotas yields a sample that represents the desired proportion of each
subgroup.
Quota sampling may be viewed as two-stage restricted judgmentalsampling.
 The first stage consists of developing control categories, or quotas,of population
elements.
 In the second stage, sample elements are selected based onconvenience or
judgment.
In the example given below a sample size of 1000 people has been selected on the
basis of subgroups male and female. Sample represents the exact percentage
representation of the population

Advantages of Quota Sampling

The major advantages of quota sampling over probability sampling are speed of
data collection,lower costs, and convenience. Although quota sampling has many
problems, carefully superviseddata collection may provide a representative sample of the
various subgroups within a population.

Snowball Sampling
A variety of procedures known as snowball sampling involve using probability
methods for an initial selection of respondents and then obtaining additional respondents
through information provided by the initial respondents. This technique is used to locate
members of rare populations by referrals. Suppose a manufacturer of sports equipment is
considering marketing a mahoganycroquet set for serious adult players. This market is
certainly small. An extremely large sample would be necessary to find 100 serious adult
croquet players. It would be much more economical to survey, say, 300 people, find 15
croquet players, and ask them for the names of other players. Reduced sample sizes and
costs are clear-cut advantages of snowball sampling. However, biasis likely to enter into
the study because a person suggested by someone also in the sample has a higher
probability of being similar to the first person.
 Probability Sampling

Simple Random Sampling

The sampling procedure that ensures each element in the population will have an
equal chance of being included in the sample is called simple random sampling.
Examples include drawing names from a hat or selecting the winning lottery ticket
winner from a large drum. If the ticket numbers are thoroughly stirred, each person or
ticket should have an equal chance of being selected. In contrast to other, more complex
types of probability sampling, this process is simple because it requires only one stage of
sample selection.
Although drawing names or numbers out of a fishbowl, using a spinner or rolling
dice may be an appropriate way to draw a sample from a small population, when
populations consist of large numbers of elements, sample selection is based on tables of
random numbers or computer-generated random numbers.
Advantages
(a) It requires a minimum knowledge of population.
(b) It is free from subjectivity and free from personal error.
(c) It provides appropriate data for our purpose.
(d) The observations of the sample can be used for inferential purpose.
Disadvantages
(a) The representativeness of a sample cannot be ensured by this method.
(b) This method does not use the knowledge about the population.
(c) The inferential accuracy of the finding depends upon the size of the sample.
Systematic Sampling
The sample is chosen by selecting a random starting point and then picking every
ithelement insuccessionfrom the sampling frame.
• The sampling interval, i, is determined by dividing thepopulation size N by the sample
size n and rounding tothe nearest integer.
• When the ordering of the elements is related to thecharacteristic of interest, systematic
sampling increasesthe representativeness of the sample.If the ordering of the elements
produces a cyclicalpattern, systematic sampling may decrease therepresentativeness of
the sample.
For example, there are 50 elements in thepopulation and a sample of 10 is desired. In
thiscase the sampling interval, k, is 5 (50/10). A random numberbetween 1 and 50is
selected. If, forexample, thisnumber is 3, the sample consists of elements 8,13, 18, 23, 28,
33, 38, 43, 48.

Advantages
(a) This is a simple method of selecting a sample.
(b) It reduces the field cost.
(c) Inferential statistics may be used.
(d) Sample may be comprehensive and representative of population.
(e) Observations of the sample may be used for drawing conclusions and generalizations.
Disadvantages
(a) This is not free from error, since there is subjectivity due to different ways of
systematic list
by different individuals. Knowledge of population is essential.
(b) Information of each individual is essential.
(c) This method can’t ensure the representativeness.
(d) There is a risk in drawing conclusions from the observations of the sample.

Stratified sampling
Stratified sampling is a two-step process in which the population is partitionedinto
subpopulations, or strata and then sampling is taken.
• The strata should be mutually exclusive and collectivelyexhaustive in that every
population element should beassigned to one and only one stratum and no
populationelements should be omitted.
• Next, elements are selected from each stratum by arandom procedure, usually simple
random sampling.
• A major objective of stratified sampling is to increaseprecision without increasing cost.
The elements within a stratum should be ashomogeneous as possible, but the elements
indifferentstrata should be as heterogeneous as possible.
• The stratification variables should also be closelyrelated to the characteristic of interest.
• Finally, the variables should decrease the cost of thestratification process by being easy
to measure andapply.
Advantages
(a) It is (more precisely third way) a good representative of the population.
(b) It is an improvement over the earlier.
(c) It is an objective method of sampling.
(d) Observations can be used for inferential purpose.
Disadvantages
(a) Serious disadvantage of this method is that it is difficult for the researcher to decide
the
relevant criterion for stratification.
(b) Only one criterion can be used for stratification, but it generally seems more than one
criterion relevant for stratification.
(c) It is costly and time consuming method.
(d) Selected sample may be representative with reference to the used criterion but not for
the
other.
(e) There is a risk in generalization.

Examples of Stratified Samples

Population All people in India
Groups (Strata)  4 Zones in the India
(Eastern,Central, Nortehrn, South)
Obtain a Simple Random sample 500 people from each of the 4 zones

Cluster Sampling
The target population is first divided into mutuallyexclusive and collectively
exhaustivesubpopulations, or clusters.
• Then a random sample of clusters is selected,based on a probability sampling technique
suchas simple random sampling.
• For each selected cluster, either all the elementsare included in the sample (one-stage)
or asample of elements is drawn probabilistically(two-stage).
Elements within a cluster should be as heterogeneousas possible, but clusters themselves
should be ashomogeneous as possible. Ideally, each clustershould be a small-scale
representation of thepopulation.
• In probability proportionate to size sampling, theclusters are sampled with probability
proportional tosize. In the second stage, the probability of selecting asampling unit in a
selected cluster varies inverselywith the size of the cluster.
Advantages
(a) It may be a good representative of the population.
(b) It is an easy method.
(c) It is an economical method.
(d) It is practicable and highly applicable in education.
(e) Observations can be used for inferential purpose.
Disadvantages
(a) Cluster sampling is not free from error.
(b) It is not comprehensive.
All these above are techniques of probability sampling.

Examples of Cluster Samples

Population All people in India
Groups (Clusters) 4 Zones in the India
(Eastern,Central, Nortehrn, South)
Obtain a Simple Random sample 2 area location from the 4 geographical
segment
Sample every or randomly selected some person in
the 2 selected geographical area

What Is the Appropriate Sample Design?

Degree of Accuracy
Selecting a representative sample is important to all researchers. However, the
degree of accuracy required or the researcher’s tolerance for sampling and non sampling
error may vary from project to project, especially when cost savings or another benefit
may be a trade-off for a reduction inaccuracy.

Resources
The cost associated with the different sampling techniques varies tremendously. If
the researcher’s financial and human resources are restricted, certain options will have to
be eliminated. Managers concerned with the cost of the research versus the value of the
information often will opt to save money by using a non probability sampling design
rather than make the decision to conduct no research at all.
Time
A researcher who needs to meet a deadline or complete a project quickly will be
more likely to select a simple, less time-consuming sample design.

Choosing Non probability versus probability sampling

Comparison of Sampling Techniques: Nonprobability Samples

Comparison of Sampling Techniques: Probability Samples

DISTINGUISH BETWEEN PROBABILITY AND NONPROBABILITY SAMPLING:

Probability sampling Non probability sampling

1. It does not afford any basis for estimating 1. Every item of the universe has an equal
the probability that each item in the chance of inclusion in the sample.
population has of being included in the
sample.

2. Probability sampling is relatively 2. It is less expensive than probability

expensive than non probability sampling. sampling.

3. The method of selection in this sampling is

quite complex and time consuming.
3. The method of selection is convenient
4. Probability sampling provides unbiased (easy) and time saving.
estimate.

5. In this method sampling error can be 4. In this sampling the danger of bias always
estimated. enters.

6. The result obtained from probability 5. Sampling error can not be estimated.
sampling can be highly assured.
6. It consist less reliability than probability
sampling.
SIGNIFICANCE OF PROBABILITY AND NON PROBABILITY SAMPLING:

1. Sometimes probability sampling may be difficult to execute in practice. In

investigation where non response is quite high, the use of non probability
sampling may be appropriate.

2. When inquiry is to be given more objectively and the accuracy of the

investigation is to be ensured at some desired level and then the only alternative is
probability sampling.

3. When there are constraints of time, money and availability of appropriate sample
frame, then the only course is non probability sampling. For eg: consumer
preference

METHODS OF DATA COLLECTION

The task of data collection begins after a research problem has been defines and research
design chalked out.
There are two types of data
 Primary data
 Secondary data

The primary data are those which are collected afresh and for the first time and thus
happen to be original in character.

The secondary data are those which have already been collected by someone else and
which have already been passed through the statistical procedure.

COLLECTION OF PRIMARY DATA:

There are several methods of collecting primary data
1. Observation method
2. Interview method
3. Through questionnaire
4. Through schedule
5. Others method

OBSERVATION METHOD:
The observation method is the most commonly used method especially in studies relating
to behavioral sciences.
Under this method, the information is sought by way of investigator’s own direct
observation without asking from the respondent.
For instance: in a study relating to consumer the investigator instead of asking the brand
of wrist watch used by the respondents, may himself look at the watch.

It can be structured and unstructured observation:

Structured observation:
In case the observation is characterized by a careful definition of the units to be
observed, the style of recording the observed information, standardized condition of
observation and selection of pertinent data of observation is called as structured
observation.
Unstructured observation:
When observation is to take place without these characteristics to be thought in advance,
the same is termed as unstructured observation.

Sometimes it can be controlled and uncontrolled observation:

Uncontrolled observation:
If the observation takes place in the natural setting, it may be termed as uncontrolled
observation.

Controlled observation:
When observation takes place according to definite pre arranged plans, involving
experimental procedure the same is then termed controlled observation.

Merits Of Such Systems Are:

1. Subjective bias is eliminated, if observation done accurately.
2. The information obtained relates to what is current happening; it is not
complicated by past behavior or future intension.
3. It is independent of respondent’s willingness to respond.
4. It is suitable in studies where respondents are not capable of giving verbal report.

Limitations:
1. It is an expensive method.
2. Information provided by this method is very limited.
3. Sometimes unforeseen factors may interfere with the observational task.

INTERVIEW METHOD:
The interview method of collecting data involves presentation of oral verbal responses.
This method can be used through personal interview and through telephone interview.

a) Personal interview:
An interview is called personal when the interviewer asks the questions face to face
with the interviewee.
Merits:
1. More information can be obtained.
2. Personal information can be obtained easily.
3. Non response generally remains very low.
4. Greater flexibility under this method.
5. The language of interview can be adapted to the ability of person
interviewed.

Demerits:
1. It is very expensive method.
2. Possibility of biasness is high.
3. More time consuming.
 4. Selecting, training and supervising the field staff is more complex for taking
interview.

b) Telephone interview:
The method of collecting information consists in contacting respondents on
telephone itself. It is not a very widely used method but play important part in
industrial study.
Merits:
1. More flexible than other methods.
2. More faster than other methods.
3. Cheaper than other methods.
4. Recall is easy
5. Higher rate of response.
6. Replies can be recorded.

Demerits:
1. Survey is restricted to respondents who have telephone facilities.
2. Little time is given to respondents for considering answers.
3. Extensive geographical coverage may get restricted by cost consideration.
4. Possibility of biasness.
5. Questions have to be short.

QUESTIONNAIRE METHOD:
“A questionnaire consist number of questions printed or typed in a definite order on form
or set of forms.”
This method of data collection is quite popular, particular in case of big enquiries. It is
being adopted by private individuals, research workers, private & public organization and
even by governments.
The questionnaire is mailed to respondents who are expected to read and understand the
questions and write down the reply in the space in the questionnaire itself and return the
questionnaire.

Merits:
1. There is low cost even where the universe is large.
2. It is free from the bias of the interviewer; answers are in respondents own words.
3. Respondents have adequate time to give well thought out answers.
4. Respondents can also be reached conveniently.
5. It is more reliable and dependable.

Demerits:
1. Low rate of return of the filled questionnaire.
2. It can be used only when respondents are educated and cooperating.
3. Control over questionnaire may be lost once it is sent.
4. There is inbuilt inflexibility.
5. There is also the possibility of ambiguous replies.
6. This method is very slowest to all.

NOTE: Before using this method it is advisable to conduct ‘pilot survey’ for testing the
questionnaire.
Pilot survey is the replica and rehearsal of main survey.
QUESTIONNAIRE DESIGN PROCESS:

Specify the Information Needed

Specify the Type of Interviewing Method

Determine the Content of Individual Questions

Design the Question to Overcome the Respondent’s

Inability and Unwillingness to Answer

Decide on the Question Structure

Determine the Question Wording

Arrange the Questions in Proper Order

Identify the Form and Layout

Reproduce the Questionnaire

Eliminate Bugs by Pretesting

QUESTIONNAIRE DESIGN PROCESS:

Step 1: Information Needed

 Ensure information obtained fully addresses all components of the problem.
 Must have clear idea of the target population.

Step 2: Interviewing Method

 Ensure the proper interviewing method
 Personal interview
 Mail questionnaire
 Telephone method

Step 3: Content of Individual Questions

 Is each question necessary?
 Is each question unambiguous?
 Should this question be asked (does it match the study objective)?
 Is the question of proper scope and coverage?

Step 4: Inability/Unwillingness to Answer

 Can the respondent remember?
 Can the respondent articulate?
 Is the information sensitive?
 Minimize effort required of respondent.

Step 5: Question Structure

 Use structured questions whenever possible.
 Response alternatives should be mutually exclusive.
 Response alternatives should include all possible answers and if question demand,
neutral alternative include it also.

Step 6: Question Wording

 Use ordinary words.
 Avoid ambiguous words.
  Do not use leading questions.
 Should be easily understood, simple and concrete.
 Use positive and negative statements as much as possible.

Step 7: Question Order (sequence)

 Qualifying questions first.
 General questions before specific questions.
 Demographics?
 Beginning of questionnaire
 End of questionnaire

Step 8: Form & Layout

 Divide questionnaire into multiple parts
 Number each question
 Precode the questions
 Keep scale questions in same general vicinity
 Avoid temptation to “fill the blank spaces”

Step 9: Questionnaire Reproduction

 Professional appearance
 Booklet format for long questionnaires
 Must take good quality of paper, to attract the attention of recipients.

Step 10: Pretesting

 Always try to pretest first and Test everything.
 Pretest sample should be extremely similar to test sample
 Pretest using same methodology as the main test
 If make changes to questionnaire, or methodology, pretest again before main test.

TYPES OF QUESTIONS:

1. Contingency questions:
A question that is answered only if the respondent gives a particular response to a
previous questions.
Ex: Have you ever smoked ?
Yes
No

If yes about how many times you smoked?

Once 6 to 10 times
2 to 5 times 11 to 20 times
More than 20 times

2. Scaled questions:
Responses are graded on continuum. This scale includes the likert scale and rank order
scale.
Ex; Rate the appearance of the product on a scale from 1 to 5, with 5 being the most
preferred appearance.

3. Closed ended questions:

Respondent’s answers are limited to a fixed set of response. Closed ended question
include dichotomous questions and multiple choice question.
 a. Dichotomous questions:
The respondent answers with a “yes” or a “no”.
Ex: I plan to purchase a laptop in next 3 month.
Yes
No
b. Multiple choice question:
The respondents have several options from which to choose.
Ex: What one magazine do you read most often for business news?
Business world
Business week
Business today

4. Open ended questions:

No option or predefined categories are suggested. The respondent supplies his ideas in his
own words in the space provided on a questionnaire.
Ex: Where have you seen advertising for HP computers?

SEQUENCING OF QUESTIONS:
The design of survey question is influence by the need to relate each question to the other
in the instrument. Question sequence can encourage or discourage the participant rapport.
Some guidelines are suggested to implement:
1) The question process must quickly awaken interest and motivate the participant in
the interview. Put the more interesting questions early.
2) Most studies need to ask for personal classification information (e.g. age, family
size, income) about participants. This request should be made at the end of the
survey. If made at the start of the survey, it often causes participants to feel
threatened, dampening their interest and motivation to continue.
3) It is also dangerous to ask any questions at the start that is too personal.
4) The questioning process should begin with simple item and then move to more
complex, as well as move from general items to more specific.
5) Question should logically from one to the next.
6) Question should generally be avoided as opening questions in a questionnaire that
put too great strain on the memory of the respondent.
7) The researcher must always remember that the answer to given question is a
function not only of the question itself but of all previous questions as well.
8) Questions should flow from the least sensitive to the most sensitive.

LENGTH OF QUESTIONNAIRE

There are no universal agreements about the optimal length of questionnaires. It probably
depends on the type of respondents. However, short simple questionnaires usually attract
higher response rates than long complex ones. However, some studies have shown that
the length of a questionnaire does not necessarily affect response. More important than
length is question content. A subject is more likely to respond if they are involved and
interested in the research topic. Questions should be meaningful and interesting to the
respondent.

PRECAUTIONS IN PREPARATION OF QUESTIONNAIRE

 1) Researcher must have clear idea of the target population.
2) Researcher use structured questions whenever possible.
3) Use ordinary words, avoid ambiguous words and do not use leading questions.
4) Use positive and negative statements as much as possible.

5) The size of questionnaire should be kept to minimum.

6) Questions should proceed in logical sequence moving from easy to more difficult
questions.
7) Technical term and vague expressions should be avoided.
8) Open ended question should be avoided in questionnaire to extent possible.
9) Questions affecting the sentiments of respondents should be avoided.
10) Researcher must use the booklets, in the place of loose or stapled sheets of paper.

COLLECTION OF DATA THROUGH SCHEDULES:

Schedules are being filled by the enumerators, who are specially appointed for the
purpose. The enumerators should be trained to perform their job well.

DIFFERENCE BETWEEN QUESTIONNAIRE AND SCHEDULE:

Questionnaire Schedule
1) The questionnaire is generally sent through 1. It is filled by the enumerators.
mail to informants to be filled up.

2) It is cheap and economical method.

2. It is relatively more expensive.
3) Non response is usually high.
3. Non response is generally low.
4) This method is very slow.
4. This method is faster than questionnaire.
5) It is used only when respondents are
literate. 5. Information can be gathered when respondents
are illiterate.

6) Observation method can not used while 6. Observation method can also be used along with
collecting data through questionnaire. schedules.

Sample Size

Sample Size
When asked to evaluate a business research project, most people, even those with
little research training, begin by asking, “How big was the sample?” Intuitively we know
that the larger the sample, the more accurate the research. This is in fact a statistical truth;
random sampling error varies with samples of different sizes. In statistical terms,
increasing the sample size decreases the width of the confidence interval at a given
confidence level. Obviously if we collect information from every member of the
population, we know the population parameters, so there would be no interval.
Increasing the sample size reduces the sampling error

Factors in Determining Sample Sizefor Questions Involving Means

Three factors are required to specify sample size:

(1) the heterogeneity (i.e., variance) of the population;
(2) the magnitude of acceptable error (i.e., _ some amount); and
(3) the confidence level(i.e., 90 percent, 95 percent, 99 percent).

The determination of sample size heavily depends on the variability within the
sample. The variance, or heterogeneity, of the population is the first necessary bit of
information. In statistical terms, this refers to the standard deviation of the population.
Only a small sample is required if the population is homogeneous.
As heterogeneity increases, so must sample size. Thus, to test the effectiveness of
an employee training program, the sample must be large enough to cover the range of
employee work Experience
The magnitude of error, or the confidence interval, is the second necessary bit of
information. Defined in statistical terms as E, the magnitude of error indicates how
precise the estimate must be. It indicates a certain precision level. m Allowing an error
of$1,000 in total family income instead of E plus minus 50 may be acceptable in most
market segmentation studies.
The third factor of concern is the confidence level. In our examples, as in most
business research, we will typically use the 95 percent confidence level. This, however, is
an arbitrary decision based on convention

Table below summarizes the information required to determine sample size.

Estimating Sample Size for Questions Involving Means

The researcher must follow three steps:
1. Estimate the standard deviation of the population.
2. Make a judgment about the allowable magnitude of error.
3. Determine a confidence level.
 The judgment about the allowable error and the confidence level are the
manager’s decision to make. Thus, the only problem is estimating the standard deviation
of the population. If our concern is to estimate the mean of a particular population, the
formula for sample size is

where
Z = standardized value that corresponds to the confidence level
S =sample standard deviation or estimate of the population standard deviation
E =acceptable magnitude of error, plus or minus error factor (range is one-half of the
totalconfidence interval)
Suppose a survey researcher studying annual expenditures on lipstick wishes to
have a 95percentconfidence level (Z=1.96) and a range of error (E) of less than $2. If the
estimate of thestandard deviation is $29, the sample size can be calculated as follows:

If a range of error (E) of $4 is acceptable, the necessary sample size will be

reduced:

Thus, doubling the range of acceptable error reduces sample size to approximately
one-quarter of its original size. Stated conversely in a general sense, doubling sample size
will reduce error by only approximately one-quarter. Confidence level (Z =1.96) and a
range of error (E) of less than$2. If the estimate of the standard deviation is $29, the
sample size can be calculated as follows:

Factors in Determining Sample Size for Proportions

Researchers frequently are concerned with determining sample size for problems
that involve estimating population proportions or percentages. To determine sample size
for a proportion, the researcher must make a judgment about confidence level and the
maximum allowance for random sampling error.
The formula is

where
n = number of items in sample
Z2cl = square of the confidence level in standard error units
p = estimated proportion of successes
q = (1 – p) or estimated proportion of failures
E2= square of the maximum allowance for error between the true proportion and
thesample proportion, or Zc.l.Spsquared
Suppose a researcher believes that a simple random sample will show that 60
percent of thepopulation (p) recognizes the name of an automobile dealership. The
researcher wishes to estimatewith 95 percent confidence (Zc.l. = 1.96) that the allowance
for sampling error is not greater than3.5 percentage points (E). Substituting these values
into the formula gives
 Determining Sample Size on the Basis of Judgment

Just as sample units may be selected to suit the convenience or judgment of the
researcher, sample size may also be determined on the basis of managerial judgments.
Using a sample size similar to those used in previous studies provides the inexperienced
researcher with a comparison with other researchers’ judgments.
Another judgmental factor that affects the determination of sample size is the
selection of the appropriate item, question, or characteristic to be used for the sample size
calculations. Several different characteristics affect most studies, and the desired degree
of precision may vary for these items. The researcher must exercise some judgment to
determine which item will be used. Of tenthe item that will produce the largest sample
size will be used to determine the ultimate sample size. However, the cost of data
collection becomes a major consideration, and judgment must be exercised regarding the
importance of such information.
Another consideration stems from most researchers’ need to analyze various
subgroups within the sample. For example, suppose a researcher wants to look at
employee attitudes, but is particularly interested in differences across genders and age
groups. The analyst will want to make sure to sample an adequate number of men and
women, as well as across the various age groups to ensure that subgroup comparisons are
reliable. There is a judgmental rule of thumb for selecting minimum subgroup sample
size: Each subgroup to be separately analyzed should have a minimum of 100 units in
each category of the major breakdowns. With this procedure, the total sample size is
computed by totaling the sample sizes necessary for these subgroups.

Determining Sample Size for Stratified and Other Probability Samples

Stratified sampling involves drawing separate probability samples within the
subgroups to make the sample more efficient. With a stratified sample, the sample
variances are expected to differ by strata. This makes the determination of sample size
more complex. Increased complexity may also characterize the determination of sample
size for cluster sampling and other probability sampling methods. The formulas are
beyond the scope of this book. Students interested in these advanced sampling techniques
should investigate advanced sampling textbooks.

Sampling error
Several potential sources of errors can affect a research design. A good research
design attempts to control the various sources of error.
They have two major types of error
1. Sampling error
2. Non sampling error
1. Sampling error
 a) Biases sampling
b) unbiased sampling
causes for sampling error
1. faulty selection process
2. substitutions
3. faulty separation of sampling units
2.non sampling error
a) frame error
b)non response error
c)measurement error
d)data processing error
e)data analysis error

Method to reduce the error

1. for sampling error
a)increase sample size
b)stratification
2. for non sampling
a)responsible collection of sample at appropriate time
b) use of an accurate sampling frame
c)appropriate plan for following-up on non respondant
d)designing a comprehensive questionnaire
c)through training of surveyors and data processing personnel
d) in-depth knowledge of factors that affect the research problem