Research

Methodology 6
Presented by Dr Sarmistha Das

Time Horizon
Cross-sectional studies
Snapshot of constructs at a single point in
time
Use of representative sample
Multiple cross-sectional studies
Constructs measured at multiple points in
time
Use of different sample
Longitudinal studies
Constructs measured at multiple points in
time
Use of same sample = a true panel

How to calculate the extent

of variation?
SD of the sample mean of the sampling
distribution
STANDARD ERROR
The standard deviation of the distribution
of a sample statistics is known as the
Standard Error of the statistics.
Indicates the accuracy we are likely to
get if we use a sample statistic to
estimate a population parameter.

SD of the distribution SE of mean

of sample means
SD of the distribution SE of median
of sample median

SD of the distribution SE of proportion

of sample proportion

 A lower value of standard error---- Value of SE

increases---

when

sample

size

What will be the shape of the sampling

distribution of sample mean with
differently
shaped
population
distribution?

Central Limit Theorem

Central Limit Theorem

If
a
population
is
normally
distributed,
The
mean
of
the
sampling distribution of the mean
will equal the population mean
regardless of the sample size.

As the sample size increases, the

sampling distribution of the mean
will approach to normality, regardless of
the shape of the population distribution.

Standard Error
Infinite
population
size-----

Finite
population
size----Standard

Error =

Standard Error =
/n

N n
N 1

Statistical Inference
Estimation--- estimation of
population parameter on the basis of
sample statistic.

Testing of hypotheses

Estimation

Point estimate

Interval estimate

Point Estimate
Sample statistic that is used to estimate
the population parameter.
Single number that is used to estimate an
unknown population.

Estimator, Estimates
populatio
n

Population
parameter
to be
estimated

Estimator
(sample
statistic we use
to estimate a
population
parameter)

Estimate
( specific
observed
value of the
statistic)

Custome
r
satisfact
ion
survey
of the
custome
rs of
Vodafon

Service of
vodafone is
best in
quality

Mean Opinion of
every fifth
customer of the
customer data
base

2.85

Point Estimation
Point estimate based on representativeness of
the sample--------------It is either right or wrong.
It is different for different samples drawn from
the same population.
Necessary to estimate population parameter in a
range.
methods
Maximum likelihood
Least square
method of moment

Interval Estimate
Marketing Manager says, Mean opinion
of the customer lies between 2 to 3.
Range of values used to estimate a population
parameter with some degree of confidence
that the parameter will fall in that range.
derive an interval that is expected to include
the true value of the parameter with the
desired level of confidence

 Researcher is interested to specify the

range, for each Parameter, with in
which the mean opinion of the
customers may lie. And the probability
that the it would lie in that range.
99%confident that the mean opinion of
the customers regarding the speed will lie
between 3.5-4.5.
Confidence interval 3.5- 4.5.
Confidence level 99%.
Interval
estimate
of
customer
satisfaction level of the Vodafone 3G
customers ?

Use of Z statistic for estimation

Central limit theorem sample means for
large samples (n30) are normally
distributed, regardless of the shape of
population distribution.
Z=(X-) / /n
= X-z /n---------- where X is the sample
mean.
Sample mean can be greater or less than
population mean.

X z

Finite Population
Confidence interval for estimating population mean

N n
N n

X Z
X Z
2 n N 1
2 n N 1
X is the sample mean, n is sample size,
is population SD,
is the area under the normal curve
which is outside the cinfidence interval, is the one tailed area
2
under the normal curve which is outside the confidence interval.

Confidence interval for estimating

population mean

X Z 2
n

X Z
X Z
2 n
2 n
X is the sample mean, n is sample size,
is population SD,
is the area under the normal curve
which is outside the cinfidence interval,

is the one tailed area

2
under the normal curve which is outside the confidence interval.

Confidence interval when population

SD is unknown
Large sample (n>30)
Sample will follow
normal distribution
( Central Limit
theorem).
Use z statistic formula
to estimate
confidence interval.
Sample SD can be
used for Population
SD.

Small sample (n<30)

Sample will follow t

distribution (even if
the population
follows normal
distribution)
Use t statistic
formula to estimate
confidence interval.
Sample SD can be
used for Population
SD.

Trade off between sample size,

interval width, level of confidence.
Greater the confidence interval
more will be the confidence level.
Factors affecting the width of a
confidence level
confidence interval,
sample size
Population standard deviation

Properties for good estimation

Unbiasedness
Consistency,
Efficiency,
sufficiency