L5: BMGT 220 Sampling Theory Techniques

Sampling Theory
Sampling is the process of selecting a sample
from a population and is widely used in business
and economics, as a means of gathering useful
information about a population.
Data are gathered from samples and conclusions
are drawn about the population as a part of the
inferential statistics process.
Often, a sample provides a reasonable means for
gathering such useful decision-making
information that might be otherwise unattainable
and unaffordable.

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Population vs. Sample
The population includes all members or units of a
defined group being considered for study or
information collection for the purpose of data driven
decision-making. It includes all the elements from a
set of data. E.g. the population of Kenya, the
population of KABU students
A sample is a subset of the population. It consists of a
number of observations from the population.

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Population vs. Sample

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Parameter vs. Statistic
Parameter: a descriptive measure of the population;
usually denoted by Greek letters.
E.g. population mean (µ ), population variance (σ 2 ), and
population standard deviation (σ ), population proportion
π
Statistic: a descriptive measure of a sample; usually
denoted by Roman letters.
E.g. sample mean ( x ), sample variance (s 2), and sample
standard deviation (s), sample proportion p.

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Why Sample?
1. The sample can save money.
2. The sample can save time especially if
obtaining the results is a matter of urgency
3. For given resources, the sample can
broaden the scope of the study allowing for
more specialized questions.
4. Because the research process is sometimes
destructive, the sample can save a product.

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 5. If accessing the population is impossible
due to location difficulties, sensitivity of
issues, the sample is the only option.
6. A sample can be cheaper to obtain than a
census for a given magnitude of questions.
If the resources allocated to a research
project are fixed, more detailed information
can be gathered by taking a sample than by
conducting a census.

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Reasons For A Census Study
Providing there is adequate time and money available,
in certain circumstances, it is preferable to conduct a
census of the entire population rather than taking a
sample:
1. to eliminate the possibility that by chance a
randomly selected sample may not be represent-
ative of the population especially if it is very
heterogeneous.
2.for the safety of the consumer e.g. for some products
such as airplanes, cars 100% are tested because
performance of such is so critical to the consumer.


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Sampling Frame
For every research study, there is a target
population that consists of the individuals,
institutions, or entities that are the object of
investigation. The sample is taken from a
population list, map, directory, or other source
used to represent the population.
This list, map, or directory is called the frame e.g.
school lists, trade association lists, list of
manufacturing companies in Nakuru, IEBC voter
registration.

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Sampling Error
This is the difference between a sample
statistic and its corresponding population
parameter.
E.g. it is the difference between population
mean and sample mean i.e. µ - x

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 SAMPLING TECHNIQUES/
PROCEDURES

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 Probability/Random Sampling: every unit of the
population has the same probability of being selected
into the sample. Random sampling implies that
chance enters into the process of selection. e.g.
lottery, SportPesa, BetIn, BetWin, EliteBet, BetWay
winners are selected by some random draw of
numbers.
Non-Probability /Non-random Sampling not every
unit of the population has the same probability of
being selected into the sample. Members of
nonrandom samples are not selected by chance e.g.
being at the right place at the right time or prior
knowledge of the people conducting the research.

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Probability/ Random Sampling
Techniques
The four basic random sampling techniques
are:
1. Simple random sampling
2. Stratified random sampling
3. Systematic random sampling
4. Multi-stage Cluster (or area) random
sampling

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Non-Probability Sampling
Are not desirable for use in gathering data
to be analyzed by the methods of inferential
statistics as sampling error cannot be
determined objectively. They are:
1. Convenience sampling
2. Judgment or Purposive sampling
3. Quota sampling
4. Snowball sampling

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Choosing A Technique
Each technique offers advantages and
disadvantages.
Some techniques are simpler to use, some
are less costly, and others show greater
potential for reducing sampling error.

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Sampling Error vs. Non-
Sampling Error
Sampling error: occurs when the sample is not
representative of the population. When random
sampling techniques are used to select elements
for the sample, sampling error occurs by chance.
 Many times the statistic computed on the sample
is not an accurate estimate of the population
parameter because the sample was not
representative of the population. This result is
caused by sampling error.
With random samples, sampling error can be
computed and analyzed.
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 Non-sampling Errors: All errors other than
sampling errors are non-sampling errors and may
be due to missing data, recording errors, input
processing errors, analysis errors, faulty measurement
instruments, defective questionnaires, poorly
conceived concepts, improper sampling frame etc.
Although they may not be completely eliminated,
non-sampling errors can be minimized through
carefully planning and executing of the research
study. They can also be avoided through proper
selection of questionnaires, follow-up of non-
responsiveness, proper training of investigators and
correct manipulation of the collected information.

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Sampling Bias
Sampling bias means a systematic component of
error which deprives a statistical result its
representativeness.
This is different from random error in the sense
that random errors balance out in the long run,
whereas sampling bias is cumulative and does not
decrease as the sample size increases.

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 Sampling bias is introduced by the following
methods of selection:
1. Deliberate selection: based on personal judgment
on what is representative
2. Substitution: sometimes it is difficult to make
contact with certain members or information is
not obtained from certain units. Substitution is
then done with members or units that are
conveniently available. This introduces bias.

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 3. Incomplete coverage: when we fail to cover the
whole of the selected sample e.g. when not all
respondents of mail questionnaire answer the
questionnaire
4. Haphazard selection: haphazard human selection
can also introduce bias, as every human being has
a tendency away from randomness in his choices.
5. Inadequate interviewing: when interviewing is
hasty, incomplete and misleading.

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 In order to draw valid conclusions, all
possible causes of sampling bias must be
avoided.
This end is achieved if the sample is drawn
entirely at random-meaning every unit has
a known non-zero probability of being
included in the sample.
A sample that is free from selection and
procedural bias is called a good and
unbiased sample.
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