Business Research Methods

EMBA-1

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Business Research Methods
EMBA-1

Lecture – 7
Sample Design and Sampling
Procedure
Determination of Sample Size: A
review of Statistical theory
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Business Research Methods
EMBA-1

Sample Design and Sampling

Procedure

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Business Research Methods
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Why Sampling
Budget and time constraints. Often,
Pragmatic reasons Not be possible to contact the whole
population

Samples are accurate only when

Accurate and reliable researchers have taken care.
results A sample may be more accurate than a
census.
In a census there is greater likelihood of
non-sampling errors.
A small, well-trained, closely supervised
group may do a more accurate job

At times testing require the destruction

Destruction of test
units If all tested that way, there would be no
product left after testing.
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Stages in Sample Selection

Define the target population

Select a sample frame

Determine if a probability or non

probability sample will be chosen

Plan procedure for selecting

sampling units

Determine sample size

Select actual sampling units

Conduct fieldwork

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Business Research Methods
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Types of Sampling

Non Probability Sampling

Probability Sampling
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Non Probability Sampling

Convenience sampling

Judgment sampling

Quota sampling

Snowball sampling
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Probability Sampling

Simple random sampling

Systematic sampling

Stratified sampling

Proportional versus
disproportional strata

Cluster sampling
Business Research Methods
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Internet Sampling

Internet surveys allow researchers to rapidly reach a

large sample. This is both an advantage and a
disadvantage.
Sample size requirements can be met overnight or in
some cases almost instantaneously.
A major disadvantage of Internet surveys is the lack of
computer ownership and Internet access among
certain segments of the population.
Business Research Methods
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Business Research Methods
EMBA-1

Determination of Sample Size: A

review of Statistical theory

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Business Research Methods
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Basic Terminology

Descriptive Statistics Statistics used to describe or

summarize information about
population or sample
Inferential statistics
Statistics used to make inferences
or judgments about a population
on the basis of a sample

Sample Statistics Variables in a sample or measures

computed from sample data
Population
Variables in a population or
parameters measured characteristics of a
population
Business Research Methods
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Making the Data Useable

Frequency Distribution

Percentage distribution

Central Tendency

Measure of Dispersion

Normal Distribution
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Making the Data Useable

Frequency
Distribution

Percentage
distribution

Central Tendency

Measure of
Dispersion

Normal Distribution
Business Research Methods
EMBA-1
Making the Data Useable

Frequency
Distribution
Mean

Percentage
distribution Median

Central Tendency

Measure of
Mode
Dispersion

Normal Distribution
Business Research Methods
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Making the Data Useable

Frequency Range
Distribution

Percentage Deviation Scores

distribution

Central Tendency
Variance
Measure of
Dispersion
Standard Deviation
Normal Distribution
Business Research Methods
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Making the Data Useable

Frequency
Distribution Value of X – Mean
Z =
Percentage Standard Deviation
distribution

Central Tendency

Measure of
Dispersion Mean
Z

X
Normal Distribution
Business Research Methods
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Some Formula

  X  a small sampling error

SMALL SAMPLING ERROR  Z cl S X

E  Z cl S X X E
2
S  zs 
Sx  n 
n E 18
Business Research Methods
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Factors of Sample Size

• Variance (standard deviation)

• Magnitude of error
• Confidence level

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Sample Size Formula - Example

Suppose a survey researcher, studying

expenditures on lipstick, wishes to have a
95 percent confident level (Z) and a
range of error (E) of less than $2.00. The
estimate of the standard deviation is
$29.00.

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Business Research Methods Sample Size Formula -
EMBA-1
Example
Suppose a survey researcher, studying expenditures on lipstick, wishes
to have a 95 percent confident level (Z) and a range of error (E) of less
than $2.00. The estimate of the standard deviation is $29.00.

 1.96 29.00 
2 2
 zs 
n   
E  2.00 
2
 56.84 
   28 . 42 2
 808
 2.00 
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Business Research Methods Sample Size Formula -
EMBA-1
Example

Suppose, in the same example as the one

before, the range of error (E) is
acceptable at $4.00, sample size is
reduced.

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Business Research Methods Sample Size Formula -
EMBA-1
Example
Suppose, in the same example as the one before, the range of error (E)
is acceptable at $4.00, sample size is reduced.

 1.96 29.00 
2 2
 zs 
n   
E  4.00 
2
 56.84 
   14 . 212
 202
 4.00 
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Business Research Methods
Calculating Sample Size
EMBA-1

99% Confidence
2 2
(2.57)(29)  (2.57)(29) 
n  n 
 2   4 
2 2
74.53  74.53 
   
 2   4 
 37.265 2
 18.6325 2

1389  347

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Business Research Methods Standard Error of the
EMBA-1
Proportion

sp 
pq
n

or

p ( 1 p )
n
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Business Research Methods Confidence Interval for a
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Proportion

Confidence Interval
p  ZclSp
Z pq 2

E  Z cl S X n
E 2

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Business Research Methods
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2
z pq
n
E2
Where:
n = Number of items in samples

Z2 = The square of the confidence interval

in standard error units.

p = Estimated proportion of success

q = (1-p) or estimated the proportion of failures

E2 = The square of the maximum allowance for error

between the true proportion and sample proportion
or zsp squared.
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Business Research Methods Calculating Sample Size
EMBA-1 at the 95% Confidence Level

Suppose a simple random sample shows 60% of the

respondents (p) recognize the name. Researcher wishes to
estimate with 95% confidence (I.e., Z=1.96) that the allowance
for sampling error is not more that 3.5% (E).
Solution:
As given:
p  .6 (1. 96 )2(. 6)(. 4 )
n
q  .4 ( . 035 )2
(3. 8416)(. 24)

001225
. 922

. 001225
 753
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Business Research Methods
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?
Any
Question?

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Business Research Methods
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Thanks for
your
contribution

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Business Research Methods
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Assignment

Gp Assignment
Case-23: Business Forum Industry
Submission date is 17th Jul
Submission time: 0630 p.m.
Selected person will present for 10 mins
Discussion to focus, how the data were analyzed

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Business Research Methods
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See You Next Week

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Business Research Methods
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Stages in Sampling
Target population
What is the relevant population? In
Sample frame many cases this is not a difficult
question, but in other cases, the
Sampling Method decision may be a difficult one.
Choice
Answering questions about the
Procedure for crucial characteristics of the
sampling units population is the usual technique
for defining the target population.
Determine sample The question “Whom do we want
size to talk to?” must be answered.
Actual sampling
units
Conduct fieldwork
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Stages in Sampling
Target population
A sampling frame is a list of
Sample frame elements from which the sample
may be drawn.
Sampling Method
The sampling frame is also called
Choice
the working population, because it
Procedure for provides the list that can be
sampling units operationally worked with.

Determine sample
size
Actual sampling
units
Conduct fieldwork
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Stages in Sampling
Target population

Sample frame Probability or Non probability sample

Sampling Method In probability sampling every element in

Choice the population has a known nonzero
probability of selection; each member of
Procedure for the population has an equal probability of
being selected.
sampling units

Determine sample In nonprobability sampling, the probability

size of any particular member of the
population being chosen is unknown.
Actual sampling Nevertheless, there are occasions when
the nonprobability samples are best
units suited for the researcher’s purpose.
Conduct fieldwork
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Stages in Sampling
Target population
The sampling unit is a single element or
Sample frame group of elements subject to selection in
the sample.
Sampling Method
Choice If the target population has been divided
into stages, the term primary sampling
Procedure for unit (PSU), secondary sampling units, or
tertiary sampling units is used .
sampling units
When there is no list of population
Determine sample
elements, the sampling unit is generally
size something other than the population
element. For example, in a random digit
Actual sampling dialing study the sampling unit will be
units telephone numbers.
Conduct fieldwork
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Non Probability Sampling

Convenience Researchers generally use

sampling convenience samples to obtain a
large number of completed
questionnaires quickly and
Judgment sampling economically
Convenience samples are best
Quota sampling
utilized for exploratory research
when additional research will
Snowball sampling subsequently be conducted with a
probability sample
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Non Probability Sampling

Convenience Judgment or purposive sampling is

sampling a nonprobability technique in
which an experienced individual
selects the sample upon his or her
Judgment sampling judgment about some appropriate
characteristic required of the
Quota sampling sample members

Snowball sampling
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Non Probability Sampling

Convenience The purpose of quota sampling is

sampling to ensure that the various
subgroups in a population are
represented on pertinent sample
Judgment sampling characteristics to the exact extent
that the investigators desire
Quota sampling

Snowball sampling
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Non Probability Sampling

Convenience Snowball sampling refers to a

sampling variety of procedures in which
initial respondents are selected by
probability methods, but additional
Judgment sampling respondents are then obtained
from information provided by the
Quota sampling initial respondents. This technique
is used to locate members of rare
Snowball sampling populations by referrals.
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Probability Sampling

Simple random A simple random sample is a

sampling sampling procedure that assures that
each element in the population will
have an equal chance of being
Systematic sampling included in the sample

Stratified sampling

Proportional versus
disproportional strata

Cluster sampling
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Probability Sampling

Simple random Systematic sampling is extremely

sampling simple: An initial starting point is
selected by a random process; then
every nth number on the list is
Systematic sampling selected.

Stratified sampling

Proportional versus
disproportional strata

Cluster sampling
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Probability Sampling

Simple random
sampling

Systematic sampling In stratified sampling, a subsample

is drawn utilizing a simple random
Stratified sampling sample within each stratum.
The reason for taking a stratified
sample is to have a more efficient
Proportional versus sample than could be taken on the
disproportional strata basis of simple random sampling

Cluster sampling
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Probability Sampling

Simple random If the number of sampling units from

sampling each stratum is in proportion to the
relative population size of the stratum,
Systematic sampling
the sample is a proportional
Stratified sampling stratified sample.
Proportional versus
disproportional strata

Cluster sampling
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Probability Sampling

Simple random The purpose of cluster sampling is

sampling to sample economically while
retaining the characteristics of a
probability sample. In a cluster
Systematic sampling sample, the primary sampling unit is
no, longer the individual element in
Stratified sampling the population (for example, grocery
stores) but a larger cluster of
Proportional versus elements located in proximity to one
another (for example, cities). The
disproportional strata
area sample is the most popular type
of cluster sample.

Cluster sampling