Solution to Demonstration Problem

• E = 1 Year
• Z Value for 95% is 1.96
• Sigma must be estimated using the (1/4)* range formula
• The range of age is 20 years, hence sigma = ¼ * 20 = 5
• Therefore n = (1.96)*(1.96)*5*5 / 1*1 = 96.04

• Hence the required sample size is 97

• If you randomly sample 97 airplanes, you have an opportunity to
estimate the average age of active planes within one year and be
95% confident of results

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 Demonstration Problem 2
• Hewitt associates conducted a national survey to determine the
extent to which employers are promoting health and fitness among
their employees.
• One of the questions asked was : “Does your company offer onsite
exercise classes ?”
• Suppose it was estimated before the study that no more than 40% of
the companies would answer “Yes”.
• How large a sample would Hewitt Associates have to take in
estimating the population proportion to ensure a 98% confidence in
the results and be within .03 of the true population proportion ?
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Solution for Demonstration Problem

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Questions ?

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Random Versus Nonrandom Sampling

• Random sampling
• Every unit of the population has the same probability of being included in the sample.
• A chance mechanism is used in the selection process.
• Eliminates bias in the selection process
• Also known as probability sampling

• Nonrandom Sampling
• Every unit of the population does not have the same probability of being included in the sample.
• Opens up the selection bias
• Not appropriate data collection method for most statistical methods
• Also known as nonprobability sampling bschool.cms.ac.in
In Laymans term

• In precise these two concepts are the same, but in reality, they are
different in the sense that in probability sampling every member of
the population gets a fair chance of selection which is not in the case
with non-probability sampling.

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 BASIS FOR COMPARISON PROBABILITY SAMPLING NON-PROBABILITY SAMPLING

Meaning Probability sampling is a sampling Nonprobability sampling is a

technique, in which the subjects of method of sampling wherein, it is
the population get an equal not known that which individual
opportunity to be selected as a from the population will be
representative sample. selected as a sample.
Alternately known as Random sampling Non-random sampling
Basis of selection Randomly Arbitrarily
Opportunity of selection Fixed and known Not specified and unknown
Research Conclusive Exploratory
Result Unbiased Biased
Method Objective Subjective
Inferences Statistical Analytical
Hypothesis Tested Generated

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Non random sampling

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Non random sampling techniques
Convenience sampling
• Can be used for exploratory work; results are not generalizable
• Sample elements are selected for the convenience of the
researcher
• Example : Use of students; mall intercept; tear-out
questionnaires in magazines

Judgmental sampling
• Subjective; value depends on researcher’s judgement, expertise
and creativity
• Sample elements are selected by the judgment of the researcher
• Expert witnesses used in court; test markets selected to
determine new product potential
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Convenience sampling
• You are investigating the association between daily weather and
daily shopping patterns. To collect insight into people’s shopping
patterns, you decide to stand outside a major shopping mall in your
area for a week, stopping people as they exit and asking them if they
are willing to answer a few questions about their purchases.

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Judgmental Sampling

• Consider a scenario where a panel decides to understand what are the

factors which lead a person to select ethical hacking as a profession.
Ethical hacking is a skill which has been recently attracting youth.
More and more people are selecting it as a profession. The
researchers who understand what ethical hacking is will be able to
decide who should form the sample to learn about it as a profession.

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Non-random sampling techniques
Quota sampling
- Two stage restricted judgmental sampling; control categories
developed in first stage and sample elements are selected
using convenience sampling in the second stage
- sample elements are selected until the quota controls are
satisfied

Snowball sampling
- initial group of respondents selected randomly and
subsequent respondents selected based on referrals
- survey subjects are selected based on referral from other
survey respondents
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Quota sampling

• Let’s say you are seeking opinions about the design choices on a
website, but do not know how many people use it. You may decide
to draw a sample of 100 people, including a quota of 50 people under
40 and a quota of 50 people over 40. This way, you get the
perspective of both age groups.

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Snowball sampling

• You are studying homeless people living in your city. You start by
attending a housing advocacy meeting, striking up a conversation
with a homeless woman. You explain the purpose of your research
and she agrees to participate. She invites you to a parking lot serving
as temporary housing and offers to introduce you around.

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Random Sampling

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Random Sampling Techniques
• Simple Random Sample
• Systematic Random Sample
• Cluster (or Area) Sampling
• Stratified Random Sample
• Proportionate
• Disproportionate

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Random Sampling

• Random sampling uses specific words for certain things.

"Population" means every possible choice.
• Whether you're choosing numbers, things or people, "population"
means "all the possible things I could choose.”
• "Sample," logically enough, means the thing or things you choose
from the population to study.

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 Random sampling techniques
Simple Random Sampling
1. Compile a sample frame in which each element is a unique identification
number
2. Generate random numbers to determine which elements to include in sample
a) each element in the population has a known and equal probability of
selection;
b) each possible sample of given size has a known and equal probability of
being the selected sample

Systematic Random Sampling

1. Choose a random starting point
2. Pick every I th element in succession; I = population N / sample n - used
when elements are ordered
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Simple random sampling

Simple random sampling means simply to put every member of the population into one big
group, and then choosing who or what to include at random.
Example
• At a birthday party, teams for a game are chosen by putting everyone's
name into a jar, and then choosing the names at random for each team.
• A restaurant leaves a fishbowl on the counter for diners to drop their
business cards. Once a month, a business card is pulled out to award
one lucky diner with a free meal.
• A pharmaceutical company wants to test the effectiveness of a new drug.
Volunteers are assigned randomly to one of two groups. The first group
will receive the new drug; the second group will receive a placebo.

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Random Sampling Techniques
Cluster Sampling
1) Divide population into clusters that contain heterogeneous elements
2) Draw a random sample of clusters
3) Include all elements or draw a random sample of elements from each
selected cluster used to increase sampling efficiency by decreasing costs

Stratified Random Sampling

1) Partition the population into strata that are homogeneous
2) Select elements from each stratum using a random procedure used to
increase precision without increasing cost
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Stratified Random Sampling

The population is divided into groups based on a shared

characteristic.
Example
• A study on tax reform might stratify a population according to income,
then take random samples from each stratum.
• Opinion surveys on specific political issues commonly stratify according
to respondents' party affiliation (or lack thereof), then take samples from
each.
• A market survey by a company interested in branching into a new market
might choose a population of people using similar products, stratify it by
brand, and sampling from each stratum.
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Cluster Sampling

Example
• A study in the wake of a natural disaster might divide a population into
clusters according to region, then choose a random cluster or clusters to
begin establishing the disaster's overall effect
• A company interested in brand penetration may lack the resources to
survey an entire city. Instead, they could divide the city into clusters
based on area, choose clusters at random, and test the popularity of their
brand.
• A survey assessing customer satisfaction with a product might establish
clusters based on place of purchase, then choose a number of those
clusters at random.
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Systematic Sampling
• Convenient and relatively easy to administer
• Population elements are an ordered sequence (at least, conceptually).
• The first sample element is selected randomly from the first k
population elements.
• Thereafter, sample elements are selected at a constant interval, k, from
the ordered sequence frame.

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Systematic Sampling: Example
• Purchase orders for the previous fiscal year are serialized 1 to
10,000 (N = 10,000).
• A sample of fifty (n = 50) purchases orders is needed for an
audit.
• k = 10,000/50 = 200
• First sample element randomly selected from the first 200
purchase orders. Assume the 45th purchase order was
selected.
• Subsequent sample elements: 245, 445, 645, . . .

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Cluster Sampling
• Population is divided into nonoverlapping clusters or areas
• Each cluster is a miniature, or microcosm, of the population.
• A subset of the clusters is selected randomly for the sample.
• If the number of elements in the subset of clusters is larger than
the desired value of n, these clusters may be subdivided to form a
new set of clusters and subjected to a random selection process.

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Cluster Sampling
● Advantages
• More convenient for geographically dispersed populations
• Reduced travel costs to contact sample elements
• Simplified administration of the survey
• Unavailability of sampling frame prohibits using other random
sampling methods
● Disadvantages
• Statistically less efficient when the cluster elements are similar
• Costs and problems of statistical analysis are greater than for
simple random sampling
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 Stratified Random Sample
• Population is divided into nonoverlapping subpopulations called
strata
• A random sample is selected from each stratum
• Potential for reducing sampling error
• Proportionate -- the percentage of thee sample taken from each
stratum is proportionate to the percentage that each stratum is within
the population
• Disproportionate -- proportions of the strata within the sample are
different than the proportions of the strata within the population

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Stratified Random Sample: Example
Population of FM Radio Listeners
Stratified by Age

20 - 30 years old
(homogeneous within)
(alike)
Hetergeneous
(different)
between
30 - 40 years old
(homogeneous within)
(alike)
Hetergeneous
(different)
between
40 - 50 years old
(homogeneous within)
(alike)

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 Errors
• Data from nonrandom samples are not appropriate for analysis by
inferential statistical methods.
• Sampling Error occurs when the sample is not representative of the
population
• Non-sampling Errors
• Missing Data, Recording, Data Entry, and Analysis Errors
• Poorly conceived concepts , unclear definitions, and defective
questionnaires
• Response errors occur when people do not know, will not say, or
overstate in their answers
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Questions ?

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