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Module - VII

Sampling and Data Processing

Business Research Methods

Dr. Vinod H. Kamble


SAMPLING – CONCEPT
Sampling is a technique of selecting a subset (part) of the population to
make statistical inferences (conclusion) from them and estimate
characteristics of the whole population.

It is difficult for a researcher to study the whole population due to


limited resources such as time, cost and energy.

Hence, the researcher selects a part of the population for his study, rather
than studying whole population. This process is known as sampling.

It makes the research activity manageable and convenient for the research.

According to Bogrdus, “Sampling is the selection of certain percentage of


a group of items according to a predetermined plan.”
CENSUS METHOD
CENSUS METHOD - SUITABILITY
CENSUS METHOD - MERITS
CENSUS METHOD - DEMERITS
SAMPLE METHOD
SAMPLE METHOD - SUITABILITY
SAMPLE METHOD - MERIT
SAMPLE METHOD - DEMERITS
SAMPLING V/S CENSUS
SAMPLING ERROR
A sampling error is a statistical error that occurs when an
analyst does not select a sample that represents the entire
population of data. As a result, the results found in the
sample do not represent the results that would be
obtained from the entire population.

Example: Let’s say a political party conducts a survey to


find out how well-liked their candidate is before a major
election. Instead of picking a random sample of the
whole population to survey, they only ask their
members.
SAMPLING ERROR - TYPES
 Systematic Error: / Biased Sampling Error: It may arise due to certain preferences at the time of
collection of samples. It is not due to chance factors; it can occur when the sampling method or
sampling frame is flawed. For example, if a researcher only samples from one geographic region,
this can lead to a biased sample if the population of interest is spread across multiple areas.

 Random Error / Unbiased Sampling Error: This is due to the natural variation that occurs when a
random sample is selected from a population. It results from chance factors and is an inherent part
of the sampling process. The magnitude of unexpected errors can be reduced by increasing the
sample size. As the sample size increases, the variability in the sample means decreases, and the
sample mean becomes a better estimate of the population.
SAMPLING ERROR - REASONS
 Faulty selection of sampling method.

 Faulty demarcation of sampling units.

 Substituting one sample for other samples


due to difficulties in collecting the sample.
SAMPLING ERROR – STEPS TO MINIMIZE
 You can simply increase the sample size. A larger
sample size generally leads to a more precise result
because the study gets closer to the actual population
size and the results obtained are more accurate.

 Dividing the population into groups.

 Random selection results in the elimination of bias.

 Performing an external record check.

 Important to know your population


NON - SAMPLING ERROR
Non-sampling Error is an error arises from human error,
such as an error in problem identification, method or
procedure used, etc.

Non-Sampling Error is the error that arises in a data


collection process as a result of factors other than taking
a sample.
NON - SAMPLING ERROR - TYPES
 Measurement error: This occurs when the data is collected using inaccurate or imprecise
instruments, such as surveys that use poorly worded questions or have unclear instructions.

 Nonresponse error: This occurs when some individuals in the sample do not respond to the
survey, resulting in a biased sample.

 Coverage error: This occurs when the sample does not accurately represent the population, for
example, if the sample is not selected randomly or if it excludes certain groups of people.

 Processing error: This occurs when the data is not entered or processed correctly, leading to errors
in the analysis.

 Response bias: this occurs when the participants give answers that are not accurate or truthful.
NON - SAMPLING ERROR - REASONS
 Lack of trained and qualified investigators.

 Due to wrong answers to the questions.

 Due to incomplete coverage.

 Biasness of the investigators.

 Vague questionnaire.

 Faulty list of population.

 Wrong method of asking questions

 Wrong calculations while processing the data.

 Failure of respondent memory to recall past events.


NON - SAMPLING ERROR – STEPS TO MINIMIZE
 Responsible collection of samples at appropriate times

 Use of an accurate sampling frame

 Appropriate plan for following up on non-respondents,

 Designing a comprehensive questionnaire

 Thorough training of surveyors and data processing personnel

 In-depth knowledge of factors that affect the research problem


SAMPLING – SIGNIFICANCE
1) Time Saving

Since using a sample reduces the number of people that


have to be reached out to, it reduces time.

Sampling helps to collect data and its analysis at faster


rate.

Therefore, the researcher can get quick research results


and accordingly can take timely action.
SAMPLING – SIGNIFICANCE
2) Economical

Since using a sample reduces the number of people that


have to be reached out to, it also reduces cost.

For any research, availability of funds is a constraint.

A smaller sample requires less funds not only for data


collection but also for processing and interpretation of data.
SAMPLING – SIGNIFICANCE
3) Reduced resource deployment

It is obvious that if the number of people involved in a


research study is much lower due to the sample, the
resources required are also much less.

The workforce needed to research the sample is much less


than the workforce needed to study the whole population.
SAMPLING – SIGNIFICANCE
4) Convenient

Sampling offers convenient to the researcher to collect the data.

The work of data collection becomes easy, quick and economical.


A researcher can complete his research project in time.

5) Reduce Complexities

Sampling helps to reduce complexities in research work.

If a limited sample is used, then fewer respondents are required to collect data.

As a result, the researcher may require less time for editing, coding and
interpretation of data.

Therefore, analysis can be quick and without complexities.


SAMPLING – SIGNIFICANCE
6) Quality of Research Work

The quality of research work may be improved due to


sampling.

The field staff will get sufficient time to collect the data
from sample respondents.

They need not to rush through the collection of data.

Also, data analysis staff gets sufficient time for data


analysis purpose.

Therefore, overall quality of research work improves.


SAMPLING – SIGNIFICANCE
7) Motivation to Research Staff

Limited sample size brings relief to the research staff.

They get motivated to collect the right information.

This is because they get sufficient time for collection and


analysis of data.

They may also get higher rewards due to good quality


research work.
SAMPLING – SIGNIFICANCE
8) Detailed Information

Due to sampling, the researcher can collect detailed


information from the sample respondents.

They can ask more questions than questions in


questionnaire.

Since there are lesser respondents, the data collected from a


sample is intense and thorough.

More time and effort is given to each respondent rather


than having to collect data from a lot of people.
SAMPLING – SIGNIFICANCE
9) Infinite Population

If the population is too larger then the sampling


method is the best way to find out solution.
REFERENCES
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SAMPLING – METHODS

Probability Methods Non-Probability Methods

- Simple Random Sampling - Convenience Sampling

- Systematic Sampling - Judgement Sampling

- Stratified Random Sampling - Quota Sampling

- Cluster Sampling - Snow-Ball Sampling


SAMPLING – METHODS
PROBABLITY SAMPLING METHOD

Probability sampling is a method of deriving a sample


where the objects are selected from a population-based
on the Theory of Probability.

This method includes everyone in the population, and


everyone has an equal chance of being selected.

Hence, there is no bias whatsoever in this type of sample.

The selection criteria are decided at the outset of the


market research study and form an important component
of research.

The various probability sampling methods are discussed


as below:
SAMPLING – METHODS
PROBABLITY SAMPLING METHOD

1) Simple Random Sampling

This is the most popular method which is normally followed to collect research data.

This technique provides every member an equal chance of being selected in the sample.

The members are selected randomly and purely by chance.

There are two sub-methods:

❑Lottery Method: Where each member is given a number and then the numbers are mixed

and by drawing of lots, the sample is selected.

❑Random Tables: The members are given numbers and the numbers are placed in rows.

The sample is selected from rows at random.


SAMPLING – METHODS
PROBABLITY SAMPLING METHOD
2) Systematic Sampling

Systematic sampling is a sampling method where the


researcher chooses respondents at equal intervals from a
population.

Every member of the population is listed with a number, but


instead of randomly generating numbers, individuals are
chosen at regular intervals.

Example : If the total population is 100 and the sample size is


10. Each respondent is given a number from 1 to100. A certain
number is selected say no. 3. So number consist of 3, 13, 23, 33,
43, 63, 73, 83, 93 will be selected as sample.
SAMPLING – METHODS
PROBABLITY SAMPLING METHOD
3) Stratified Random Sampling

This sampling method is appropriate when the population has


mixed characteristics, and researcher wants to ensure that every
characteristic is proportionally represented in the sample.

Researcher divides the population into subgroups (called strata)


based on the relevant characteristic (e.g. gender, age range, income
bracket, job role).

The strata are formed by researcher.

Then he/she uses random or systematic sampling to select a


sample from each subgroup.
SAMPLING – METHODS
PROBABLITY SAMPLING METHOD

4) Cluster Sampling

Cluster sampling also involves dividing the population into


subgroups, but each subgroup should have similar
characteristics to the whole sample.

The clusters are naturally formed.

Instead of sampling individuals from each subgroup,


researcher randomly selects entire subgroups.

If the clusters themselves are large, researcher can select


sample from each cluster using simple random or systematic
sampling method
SAMPLING – METHODS
PROBABLITY SAMPLING METHOD

This method is good for dealing with large and dispersed


populations, but there is more risk of error in the sample,
as there could be substantial differences between clusters.

It’s difficult to guarantee that the sampled clusters are really


representative of the whole population.

Example - The Company has offices in 10 cities across the


country (all with roughly the same number of employees in
similar roles). Researcher doesn’t have the capacity to travel
to every office to collect data, so he/she uses random
sampling to select 3 offices – these are the clusters.
SAMPLING – METHODS
NON-PROBABLITY SAMPLING METHOD

Non-probability sampling is defined as a sampling technique


in which the researcher selects samples based on the
subjective judgment of the researcher rather than random
selection.

It is a less stringent method.

This sampling method depends heavily on the expertise of


the researchers.

It is carried out by observation, and researchers use it


widely for qualitative research.
SAMPLING – METHODS
NON-PROBABLITY SAMPLING METHOD

1) Convenient Sampling

It is a type of where samples are selected from the


population only because they are conveniently available
to the researcher.

Only those members are selected which are easily


accessible to the researcher.

Eg. A researcher may visit a college or a university and get


questionnaires filled in by volunteer students. Similarly, a
researcher may stand in a market and interview the volunteer
persons.
SAMPLING – METHODS
NON-PROBABLITY SAMPLING METHOD

Ideally, in research, it is good to test a sample that represents


the population.

But, in some research, the population is too large to examine.

It is one of the reasons why researchers rely on convenience


sampling, which is the most common non-probability sampling
method, because of its speed, cost-effectiveness, and ease of
availability of the sample.
SAMPLING – METHODS
NON-PROBABLITY SAMPLING METHOD

2) Judgement or Purposive Sampling

In this method of sampling researchers select the samples based


purely on the researcher’s knowledge and credibility.

In other words, researchers choose only those people who they


deem fit to participate in the research study.

Judgmental or purposive sampling is not a scientific method of


sampling, and this sampling technique is that the pre-conceived
notions of a researcher can influence the results.

Thus, this research technique involves a high amount of ambiguity.


SAMPLING – METHODS
NON-PROBABLITY SAMPLING METHOD
3) Quota Sampling
Population
Under this method, the researcher allocates certain quota to
certain groups under study. Sample

The quotas may differ from each area depending upon certain factors
like age, occupation, income etc.

Eg. A researcher studying the newspaper reading habits of college


students may select 10 colleges for data collection. He may fix quota
for each college based on certain criteria. He may select 100
students from one college, may be because the number of students is
more in that college; and he may select only 20 students from
another college because of less number of students in that college.
SAMPLING – METHODS
NON-PROBABLITY SAMPLING METHOD
4) Snow-Ball Sampling

Snowball sampling helps researchers find a sample when they are


difficult to locate.

Researchers use this technique when the sample size is small and not
easily available.

This sampling system works like the referral program. It is a sampling


design in which respondents selected earlier are asked to identify other
sample members.

Eg. To find out Mercedez Benz car owners in the city like Mumbai. In this
case, researcher may locate one Mercedez Benz owner and collect the
names of 2-3 other Mercedez Benz owners.
REFERENCES
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FACTORS DETERMINING SAMPLE SIZE
1) Area of Research

The number of sample respondents depends on the area of


research.

If the research is conducted at national level, it may


require more number of respondents

If the research is conducted at local level, it may require


less number of respondents.
FACTORS DETERMINING SAMPLE SIZE
2) Availability of Funds

Generally, the researcher may be constrained by the


limitation of funds to conduct the research.

Therefore, when the researcher has limited amount of


funds allocated to the research activity, the sample size
would be lesser as compared to when the researcher has
larger amount of funds.
FACTORS DETERMINING SAMPLE SIZE
3) Availability of Manpower

The researcher may require manpower to conduct surveys,


interviews or for conducting experiments, observation etc.

Eg. If the researcher has a good number of filed staff to


conduct interviews, he may select the larger sample size of
respondents and vice-versa.
FACTORS DETERMINING SAMPLE SIZE
4) Time Frame

The sample size may depend on the time frame of research.

If the researcher has lot of time available to conduct the


research, he may select a large sample size of respondents
and vice-versa.
FACTORS DETERMINING SAMPLE SIZE
5) Nature of Research

The nature of research may influence the sample size of


respondents.

Eg. In case of academic research, the researcher may be


constrained with the limitations of funds, and therefore, he
may select a smaller sample size.

However, in the case of census survey of population, the


sample size will be the entire population of the country.
FACTORS DETERMINING SAMPLE SIZE
6) Method of Sampling

The method of sampling may influence the sample size of


respondents.

Eg. If convenience sampling method is used, the researcher


may consider a smaller sample size to obtain responses.

However, in case of stratified sampling or cluster sampling,


the researcher needs to select a larger sample size of
respondents.
FACTORS DETERMINING SAMPLE SIZE
7) Method / Sources of Data Collection

The method of data collection may influence the sample size


of respondents.

Eg. If researcher collects data through interviews, he may


select a larger sample size of respondents.

However, if the researcher adopts observation method, he


may consider a smaller sample size for the purpose of
observation.
FACTORS DETERMINING SAMPLE SIZE
8) Judgement of the Researcher

At times, the researcher may use his judgement in deciding


in the sample size.

He may consider a smaller sample size, if he is confident


in getting the adequate data from a smaller sample size.

However, if the researcher feels that he needs to select a


larger sample to collect responses, he may select a larger
sample size.
REFERENCES

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DATA PROCESSING - CONCEPT
Data processing is the conversion of data into usable
and desired form.

This conversion or “processing” is carried out using a


predefined sequence of operations either manually or
automatically.

Most of the processing is done by using computers


and thus done automatically.

The output or “processed” data can be obtained in


various forms.

Example of these forms include graph, table, charts


or any other desired format
DATA PROCESSING – SIGNIFICANCE IN RESEARCH
1) Filter out relevant data

It is difficult for researcher to work on raw data.

Because every bit of information collected may not be that


useful for the researcher.

He/she require to filter out relevant content.

Researcher can’t every time refer to huge pile of raw data and
select that relevant information he/she is looking for.

This will make research work more tedious and bulky.

Data processing helps to arrange the filtered out content into a


homogenize form and make it easy for researcher to look for
any relevant information and also makes his/her work easy.
DATA PROCESSING – SIGNIFICANCE IN RESEARCH
2) Cost Effective

Data processing makes this whole procedure more cost


effective.

As arranging those big figures into well-structured


tables saves from that risk of losing important
information.

And also some of the information gets filtered out thus


cost of saving that irrelevant information is also saved
DATA PROCESSING – SIGNIFICANCE IN RESEARCH
3) Easy to modify and edit the data

Data processing also makes it easier to modify and edit


processed data.

Processed data can be codified, classified and


presented in tabulated format which makes data
analysis easy
DATA PROCESSING – SIGNIFICANCE IN RESEARCH
4) Ease of making reports

Since data is already processed, it can be obtained


and used directly.

These processed facts and figures can be arranged


appropriately such that it helps executives in
making quick analysis and making reports speedily

RESEARCH
REPORT
DATA PROCESSING – SIGNIFICANCE IN RESEARCH
5) Accuracy and Speed

Digitization helps to process the information quickly.

During data processing, the system itself checks for and


takes care of invalid data or errors.

Such processes thus help companies ensure a high


accuracy in information management
DATA PROCESSING – SIGNIFICANCE IN RESEARCH
6) Easy Storage

Data processing helps to increase the storage space for


adding, managing and modifying information.

By eliminating unnecessary paperwork, it minimizes


clutter and also improve search efficiency by elimination
the need to go through data manually.
REFERENCES
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STAGES IN DATA PROCESSING

Classification

Coding Tabulation

Graphical
Editing
Representation
STAGES IN DATA PROCESSING
EDITING
The first step in data processing is editing of complete
schedules/questionnaires.

Editing is a process of checking to detect and/or


correct errors and omissions.

Editing consists of scrutinizing the completed


research instruments to identify and minimize
errors, incompleteness, and gaps in the information
obtained from the respondents.
STAGES IN DATA PROCESSING
EDITING
Researcher
Irrespective of the method of data collection, the information Respondent

collected is called raw data. Forgot to ask


Write only half
question or
response or
record the
The first step in processing our data is to ensure that the data are write illegibly
response

“clean” that is free from inconsistencies and incompleteness.


This process of cleaning is called “editing”.

Editing is required in case of:

❑ Researcher / Field staff forgot to ask questions

❑ Researcher / Field staff forgot to record a response

❑ Respondent write only half a response

❑ Respondent Write illegibly


STAGES IN DATA PROCESSING
EDITING
Example

If in a questionnaire question is asked,

“How much red chilies do you use in a month”

The answer is written as “4 kilos”


Can a family of three members use four kilo chilies in a month? The correct answer could be “0.4 kilo”.
-----------------------------------------------------------------------------------------------------------------------------------------------
Sometimes “don’t know” answer is edited as “no response”. This is wrong.

“Don’t know” means that the respondent is not sure and is in a double mind about his reaction or considers the
questions personal and does not want to answer it. “No response” means that the respondent is not familiar with the
situation/object/event/individual about which he is asked.
STAGES IN DATA PROCESSING
EDITING
These problems to a great extent can be reduced simply by:

❑ Checking the contents for completeness

❑ Checking the response for internal consistency

Checking the
Checking the
response for
contents for
internal
completeness
consistency
STAGES IN DATA PROCESSING
EDITING
Types of Editing

❑ Field Editing: In this type, the researcher / field

staff may go through the questionnaire as soon as


it is filled by respondent to find out whether or not
there is a need for completing partial or correcting
vague answers.

❑ Central Editing: In this type, all the


questionnaires are brought at the office and one
by one it is scrutinized to check deficiency in it.
STAGES IN DATA PROCESSING
CODING
Coding means assigning numerals or other symbols to
the responses in the questionnaire.

For each question a coding scheme is designed.

Coding can be done in any number of ways.


Eg. Assigning a letter, number, colour etc.
STAGES IN DATA PROCESSING
CODING
The coding scheme, assigned symbol together with
specific coding instruction may be recorded in a book.

The codebook will identify variables/observation (options


of questions) and the code number assigned to them.

If the data are to be transferred in the computer, the


codebook will also identify the column in which it is
entered.
STAGES IN DATA PROCESSING
CODING
Example of how codebooks is prepared and codes are assigned to variables/observations
Codebook
Questionnaire:
Question Variable Name Responses Code Column
1) Age
No. Name
• 21-30
1 Age • 21-30 1
• 31-40
• 31-40 2
• 41-50
• 41-50 3 A to E
• 51-60
• 51-60 4
• 60 and above
• 60 and above 5
2) Marital Status 2 Marital Status • Married 1

F&G
Married • Unmarried 2
• Unmarried 3 Monthly Income • Less than Rs.10,000/- 1
3) Monthly Income • 10,001/- to 30,000/- 2
H to K
• Less than Rs.10,000/- • 30,001/- to 50,000/- 3
• 10,001/- to 30,000/- • 50,000/- and above 4
• 30,001/- to 50,000/- 4 How do you find • Extremely satisfactory S1
• 50,000/- and above
overall service of • Satisfactory S2
hospital? • Somewhat S3 L to O
4) How do you find overall service of hospital? S4
Satisfactory
• Extremely satisfactory
• Not Satisfactory
• Satisfactory
5 Tick the problems • Poor services of doctors P1
• Somewhat Satisfactory and nurse
you faced during
• Not Satisfactory • Unavailability of
hospitalization P2
Machinery P3
5) Tick the problems you faced during hospitalization. P to T
• Poor Cleanliness P4
• Poor services of doctors and nurse
• Lots of P5
• Unavailability of Machinery
Documentations
• Poor Cleanliness
• Others
• Lots of Documentations
• Others
STAGES IN DATA PROCESSING
CLASSIFICATION
A process of arranging data in groups or classes on the
basis of common characteristics.

Raw data cannot be easily understood and it is not fit for


further analysis and interpretation.

Classification of data helps users in comparison and


analysis.

For example, the Population of town can be grouped


according to gender, age, marital status etc.
STAGES IN DATA PROCESSING
CLASSIFICATION
a) Classification according to attributes :

Here data is analysed on the basis of common characteristics which can either be :

Descriptive such as literacy, gender, religion etc.

OR

Numerical such as weight, height, income etc.

Descriptive Numerical
such as literacy, such as weight,
gender, religion height, income
STAGES IN DATA PROCESSING
CLASSIFICATION
Such classification can be either:

❑ Simple classification: where we consider only one attribute, and divide the universe into two classes—one

class consisting of items possessing the given attribute and the other class consisting of items which do not
possess the given attribute.

MBA Degree
YES NO

❑ Manifold classification: Here we consider two or more attributes simultaneously, and divide the data into a

number of classes.

MBA Degree B.Sc. H&HA


YES NO YES NO
Male Female Male Female Male Female Male Female
STAGES IN DATA PROCESSING
CLASSIFICATION
b) Classification according to class - intervals:

It is done with data relating to income, age, weight, tariff, production, etc. Such quantitative data are classified on
the basis of class - interval

Eg. persons whose income are within Rs. 2,001/- to Rs. 4,000/- can form one group or class, those with income within
Rs. 4,001/- to Rs. 6,000/- can form another group or class and so on.

The number of items which fall in a given class is known as the frequency of the given class is:
STAGES IN DATA PROCESSING
TABULATION
Tabulation is the process of summarizing raw data and Gender
displaying the same in compact form for further analysis.

It is an orderly arrangement of data in columns and rows.

Tabulation is essential because:

❑ It conserves space and reduces explanatory and


descriptive statement to a minimum.

❑ It facilitates the process of comparison.

❑ It provides the basis for various statistical computations


STAGES IN DATA PROCESSING
TABULATION
Types of Tabulation

❑ Uni-variate Tabulation: wherein only one variable is involved in tabulation


STAGES IN DATA PROCESSING
TABULATION
❑ Multi-variate table: wherein two or more variables are involved in tabulation
STAGES IN DATA PROCESSING
TABULATION
Guidelines / Principles of Tabulation
STAGES IN DATA PROCESSING
GRAPHIC PRESENTATION
It is a visual display of data.

It is an attractive and easily understandable way of


presenting data.

It represents complex data in a simple form.

Comparative analysis of data is easily possible.

It facilitates readers to draw conclusions easily and quickly.

There are different types of graphical presentation which


depends on the nature of data and the type of statistical results.
STAGES IN DATA PROCESSING
GRAPHIC PRESENTATION
The following are the main types of graphical presentation
STAGES IN DATA PROCESSING
GRAPHIC PRESENTATION
REFERENCES
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SAMPLE SIZE CALCULATION
Cochran's Formula when population size is unknown

n = sample size
Z = found in Z-table value at a given confidence level (1.96)
p = estimated proportion of an attribute that is present in the population (50%)
E2 = Margin of error (5%)
SAMPLE SIZE CALCULATION
SAMPLE SIZE CALCULATION
Cochran's Formula when population size is known

n = sample size
n0 = initial sample size calculated as per larger population criteria
N = Population size
SAMPLE SIZE CALCULATION

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