Assignment

Course Title:
Course Code:
Topic Name:

Statistics for Business

MBA-504
Types of Sampling

Submitted To
Md. Sayed Parvez Khan
Lecturer, School of Business

Submitted By
Md. Anwar Hossain
ID: 16102539
Dept: IMBA

Submitted Date: 29-07-2016

Sampling Methods can be classified into one of two categories:

1) Probability Sampling: Sample has a known probability of being selected.
2) Non-probability Sampling: Sample does not have known probability of being selected
as in convenience or voluntary response surveys

1) Probability Sampling:
There are few categories of probability samplinga) Simple Random Sampling (SRS)
b) Stratified Sampling
c) Systematic Sampling
d) Multistage Sampling
Short description of this sampling-a) Simple Random Sampling (SRS): Simple random sampling is a probability
technique which refers each and every element of the population is given an equal chance
of being included in the sample. This sampling should be free from personal biasness.
Example: An example of a simple random sample would be a group of 25 employees chosen
out of a hat from a company of 250 employees. In this case, the population is all 250
employees, and the sample is random because each employee has an equal chance of being
chosen.
Classification: There are two types of simple random sampling technique:
I.
Lottery method
II.
Table of random numbers.
Merits
a) Less chance of Bias:
b) Based on Probability:
c) More Accuracy:
d) Suitable for Large Numbers:
e) Less dependence on detailed Information:
f) Evaluation of Relative Efficiency.
Demerits
a) Expensive:
b) Requires More Skill

b) Stratified Sampling:
Stratified sampling is a probability technique which include the following steps: Step
-1: The first step used to divide the total population into homogeneous group called strata.
Step-2: The next step is to take sample from each strata by sample random technique.
Example: Assume that we need to estimate average number of votes for each candidate in an
election. Assume that country has 3 towns: Town A has 1 million factory workers, Town B
has 2 million office workers and Town C has 3 million retirees. We can choose to get a
random sample of size 60 over entire population but there is some chance that the random
sample turns out to be not well balanced across these towns and hence is biased causing a
significant error in estimation. Instead if we choose to take a random sample of 10, 20 and 30
from Town A, B and C respectively then we can produce a smaller error in estimation for the
same total size of sample.
Classification:
There are two types of stratified sampling1. Proportional- Proportionate stratification is a type of stratified sampling. With
proportionate stratification, the sample size of each stratum is proportionate to the population
size of the stratum. This means that each stratum has the same sampling fraction.
2. Disproportional- Disproportionate stratification is a type of stratified sampling.
With disproportionate stratification, the sample size of each stratum does not have to be
proportionate to the population size of the stratum. This means that two or more strata will
have different sampling fractions.
Merits
Stratified random sampling is more representative and beneficial against the bias of deliberate
selection. This method is less expensive, has administrative convenience, provides greater
precision and is most suitable for skewed universe.
Limitation
This method is expensive and suffers from the difficulty of weighting, stratification and
overlapping of strata.
c) Systematic sampling: systematic sampling system is a probability sampling technique
which includes the following steps.step-1: the first step is to find out kth value. Where k
means n/s, where, n=size of total populations=sample. step 2- 2 nd step to select the first
sample element randomly .step3-the final step is to implement the k th in the total
population and to get the desired sample.
Example: if you wanted to select a random group of 1,000 people from a population of
50,000 using systematic sampling, you would simply select every 50th person, since
50,000/1,000 = 50.
Classification: N/A

Merits
This technique of selection is independent of the property of the universe
which is under study and so it gives quite a representative sample.
There is a little chance of bias creeping into the sample.
It is quite popular in the random draw of prizes and selection of a
contesting candidate in a tie position.
Demerits
The selection may be affected by bias of the drawer if all the chits are not
folded identically and are not of identical size, shape and color.
It is not suitable for a large sized universe for that it will be very difficult
to write down the names or particulars of a large number of units on the
chits of paper.
It consumes lot of time and energy.

d) Multistage sampling: Multistage sampling is technique which is carried out in several

stages, its not a unique method of sampling, when two or more sampling techniques are
used to get a final sample than it is called multi stage sampling.
Example: you want to conduct a survey of salespeople for a nationwide retail chain with
stores all over the country. You could randomly select states, randomly select counties in each
state, randomly select stores in each county, and randomly select salespeople in those stores.
Classification: N/A
Merits
Cost and speed that the survey can be done in
Convenience of finding the survey sample
Normally more accurate than cluster sampling for the same size sample
Cost-effectiveness and time-effectiveness.
High level of flexibility
Demerits
Not as accurate as Simple Random Sample if the sample is the same size
More testing is difficult to do
High level of subjectivity.

 Research findings can never be 100% representative of population.

The presence of group-level information is required.

2) Non probability sampling:

a) Quota Sampling: Quota sampling is a non-probability sampling
technique wherein the researcher ensures equal or proportionate
representation of subjects depending on which trait is considered as
basis of the quota.
Example: if basis of the quota is college year level and the researcher needs equal
representation, with a sample size of 100, he must select 25 1st year students, another 25 2nd
year students, 25 3rd year and 25 4th year students. The bases of the quota are usually age,
gender, education, race, religion and socioeconomic status.
Advantages of Quota sampling
Quota sampling ensures convenience in executing sampling study.
When the respondent refuses to cooperate, he may be replaced by another person who
is ready to furnish information.
Quota sampling is less expensive and speedy
When the population has no suitable frame, quota sampling is the only practical
method.
Collection of data through Quota sampling method is not a time consuming one.
Disadvantages of Quota sampling
The interviewer interviews people who are easily available and accessible. So, the
possibility of collecting valuable data is affected in Quota sampling.
Bias arises in the matter of selection of sample units.
The work of the interviewer cannot be supervised properly. So, there is no certainty of
correctness of data.

b) Judgment Sampling
Judgment sampling is one of the non-probability methods of sampling. Judgment sampling
involves the selection of a group from the population on the basis of available information. It
is the selection of the group by intuition on the basis of criteria deemed to be self evident.
Under this method, units are included in the sample on the basis of the judgment that the units
possess the required characteristics to qualify as representatives of the population.
Advantages of Judgment sampling
The chief advantages of the judgment sampling are as follows:
Judgment sampling eliminates 5e cost and time in preparing the sample
Judgment sampling method enables the researcher to include the positive aspects of
stratification in the sample.
Disadvantages of judgment sampling
There is uncontrolled variability and bias in the estimates in Judgment sampling.
The success of Judgment sampling method is solely dependent on a thorough
knowledge of the population and elimination of the use of inferential parametric
statistical tools for the purpose of generalization.
Complete reliance on intuition and hunch is risky in Judgment sampling.

c) Convenience sampling:
Convenience sampling is generally known as careless, unsystematic, accidental or
opportunistic sampling. The sample is selected according to the convenience of the sample.
The researcher selects certain units convenient to him. It requires no pre-planning for the
selection of items. Convenience sampling ensures convenience in respect of availability of
source list and accessibility of the units. Despite being unscientific, a large number of
samples are convenient sampling.
A convenience sampling is used in the following situations:
when the universe is not clearly defined
where sampling unit is not clear and
When a complete source list is not available.