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“Applied Statistics”
Course Title: Applied Statistics
Course Code: BUS1124
Submitted to
Tahsin Farzana Jisun
Southeast University
Submitted By:
M. Tohidul Islam
ID: 2015210000137
Batch: 41st
Section: 2
Department of BBA
Southeast University
Date of Submission: 20.05.2020
1.What is Non-Probability Sampling?
Non-probability sampling is a sampling technique where the odds of any member being selected
for a sample cannot be calculated. It’s the opposite of probability sampling, where
you can calculate the odds. In addition, probability sampling involves random selection, while
non-probability sampling does not–it relies on the subjective judgment of the researcher.
The odds do not have to be equal for a method to be considered probability sampling.
For example, one person could have a 10% chance of being selected and another person could
have a 50% chance of being selected. It’s non-probability sampling when you can’t calculate the
odds at all.

Quota sampling?
Quota sampling is defined as a non-probability sampling method in which researchers create a
sample involving individuals that represent a population. Researchers choose these individuals
according to specific traits or qualities. They decide and create quotas so that the market research
samples can be useful in collecting data. These samples can be generalized to the entire
population. The final subset will be decided only according to the interviewer’s or researcher’s
knowledge of the population.

For example, a cigarette company wants to find out what age group prefers what brand of
cigarettes in a particular city. He/she applies quotas on the age groups of 21-30, 31-40, 41-50,
and 51+. From this information, the researcher gauges the smoking trend among the population
of the city.

2.Distinguish between the following terms

i. Population and sample
ii. Type I error and type II error
iii. Estimator and estimate
iv. Point estimate and interval estimate

i.Population and sample

Population Sample
The measurable quality is a parameter. The measurable quality is called a statistics .
The population is a complete set. The sample is a subset of the population .
Reports are a true representation of opinion. Reports have a margin of error and confidence
It contains all members of a specific group. It is a subset that represent the entire population.
ii. Type I error and type II error
Type I Error Type II Error
A type error I is when a statistics call calls for A type II error is when a statistic does not give
the rejections of a null hypothesis which is enough evidence to reject a null hypothesis
factually true. even when the null hypothesis should factually
be rejected.
A type I error is called false positive. A type II error is false negative.
It denoted by the Greek letter α ( alpha) It denoted by the *Beta*
Null hypothesis and type I error. Alternative hypothesis and type II error.

iii. Estimator and Estimate

Estimator Estimate
It is a Random Variable. So its value depends It's value is Constant. It is the value taken by
on the outcome of some experiment, and it has an estimator, given a particular set of sample
a statistical distribution. data.

In Statistics, the method used The value that obtained from a sample

iv.Point Estimate And Interval Estimate

Point Estimates

  A statistic (value obtained from sample) is used to estimate a parameter (value from the
 Take a sample, find x bar. X bar is a close approximation of μ
o Depending on the size of your sample that may not be a good point estimate.
 s is a good approximation of σ
 If we want stronger confidence in what range our estimate lies, we need to do
a confidence interval.

Interval Estimate

  Broader and probably more accurate than a point estimate

 Used with inferential statistics to develop a confidence interval where we believe with a
certain degree of confidence that the population parameter lies.
 Any parameter estimate that is based on a sample statistic has some amount of sampling
3.Briefly explain the steps in planning and executing a sample
Sample survey now a days, is the most efficient technique of providing relevant information for
drawing inference about a population. From economic point of view, it is the only viable means
to study the population. It is therefore essential to describe the main steps involved in executing a
sample survey. The following are some of the step:

Objectives: Whenever we plan a sample survey, a clear and concise statement of the objectives
should laid down. The objectives must be kept simple enough to be understood by those working
on the survey and to be met successfully when the survey is completed. While setting the
objectives, keep in mind the hypothesis (if any) being tested and the end points that will be used
in the study to examine these hypotheses.

Target Population: the population from which the sample is to be drawn should be defined and
identified in clear and unambiguous terms in terms of its contents, units, and extent and reference
time. This important because a sample must be selected from the population you define at the
outset. The ‘target population’ may be modified to ‘survey population’ to take account t of
practical constraints.

Data: The data to be collected must be relevant and pertinent to the purpose of the survey.
Keeping the objectives in view, a detailed list of variables should be prepared, defined and how
these variables will be measured should be indicated in advance.

Precision Desired: In a sample survey, only a part of the population is measured for which the
survey results are almost always subjects to error. Error of measurement is also an additional
sources of distorting the survey results. These errors can be reduced to some extent by using
larger sample and improved measuring instruments. However, this involves additional cost, time
and effort. Consequently, a decision on the degree of precision desired in the result must be

Sampling Frame: A sampling frame is an indispensable tool for conducting a sample survey. A
complete accurate and up-dated sampling frame must be constructed in order to draw valid

Sample Design: When a number of sampling designs are available for a particular sample
survey, one that is most efficient in terms of cost, reliability and appropriateness to meet the
objectives, should be employed (e.g. simple random, stratified or cluster). An approximately
chosen sampling design is highly desirable to obtain reliable estimates of the population
parameters. Many surveys have produced little or no useful information because they were not
properly designed.
Survey Design: The design of a survey involves many interrelated decisions on such factors as
the mode of data collection, constructing questions, data processing method as well as the sample
design. Field data may be collected in a number of ways. A questionnaire may be constructed an
d be mailed to the respondents, who will be instructed to fill-it up and send back the same to
surveyor. This is sometimes called self-administered questionnaire method. The survey may also
employ a face-to-face interview using an interview schedule. This is referred to as the interview
method. Data may also be collected through telephonic conversation or through direct
observation, in which it is called an observational study.

Sample Size: Determination of sample size is perhaps the most difficult part of a statistical
investigation. Often it is the claimed that a sample should bear some proportional relationship to
the size of the population from which it is drawn. This is not true. The absolute size of a sample
is a much more important than its size compared with the population. The size of a sample is a
function of the variation in the population parameters under study and the precision of the
estimate needed by the researcher.

Preparation of Field Materials: Questionnaire is an important instrument for any scientific

study. It is therefore necessary to construct questionnaires relevant to the study keeping in mind
the objectives. Necessary instruction manuals to fill-up the questionnaire must also be prepared
in advance so that the field workers can collect data without any difficulty.

Pre-Testing: Pre-testing is a trial or operation that allows us to test the questionnaire in the field
or other measurement instruments, to screen interviewers and to check on the management of
field operations. The results of the pre-test usually suggest that some modifications must be
made before a full-scale sampling is undertaken. The failure to pre-test concepts and detailed
plans for the survey could result in loss of time, costs exceeding budget limit and even a survey o
poor and inadequate quality. Pre-testing provides the means of uncovering deficiencies and the
basis for corrective action prior to carrying out the actual survey work. It may also suggest
amount of workload to be assigned to each investigator and an insight into the data processing
operation in advance.

Duration of Study: Once the data of execution of the survey is decided, it remains to set up a
work schedule for the completion of the various stages of the study. These included, among
others, the time that would be needed for preparatory works, sample selection, pre-test,
questionnaire development field work including travelling and subsistence, tabulation plan,
training of field staff, data coding, data entry processing and report writing. It is recommended
that this information be presented in the form of a detailed timetable with months across on the
top and activities listed along the left margin. For each of the activities mark a cross against the
month(s) in which they will occur.
Fieldwork: Efficient organization of this fieldwork is a pre-requisite of the successful
completion of a statistical investigation. The personal involved in the fieldwork should receive-
adequate training related to the work. Appropriate measures should be taken so that the field
personnel are regularly supervised and their works be monitored. Quality of the work should be
ensured at very early stage of the work so that any inconsistence or shortcomings can be
removed well before the completion of the work. An instruction manual should be prepared for
all categories of person involved in the field operation. This will ensure quality data assuring
maximum accuracy in the estimates.

Data Management: Large surveys generate huge amounts of data. Hence, a well-prepared data
management plan is of prime importance. This plan should included the steps for processing data
from the very inception of the study until the final analysis is completed. The administrative and
computer procedures to be used, the type of staff available and whether any training will be
needed to facilitate data management should also be described. A quality control scheme should
also be included in the plan in order to check for agreement between processed data and data
gathered in the field.

Editing and Checking: A detailed plan must be outlined at the outset to check and edit the field
data soon after they are hand for any erroneous and inconsistent entries. Both manual and
computer checking may be employed for any inconsistency in data. For any erroneous entry,
which cannot be corrected at this stage, should be corrected by re-interviewing the respondents.

Data Processing and Analysis: once the data are checked, edited and corrected for errors,
processing of data should be attempted keeping in view the objectives of the survey. This task
also needs careful planning. The next step is the statistical analysis, which is carried out to arrive
at the desired estimates of the population parameters. Outline the statistical methods that will be
used for analysis of the data, including a description of how the information collected will be
used to test the stated hypothesis and how any missing data will be dealt with.

Project Management: For collaborative study, involving several organizations, indication

should be made at the planning stage, which will have overall responsibility, which other
organizations will be involved and what their responsibilities will be, and the manner in which
the work will be coordinated and monitored.

Report Writing: Finally, report of the finding of the study highlighting the policy implications
and suggesting possible action and measures to be taken including policy recommendation,
should be written in the report.

Lessons Learned: Survey is a complex undertaking and is liable to large margin of errors if not
properly handled. Because of this complexity, things never go exactly as we plan. The main
obstacle and difficulties, which one expects, might interfere with the successful completion of
the study within the time and cost proposed should therefore be described.

4. As a result of tests on 15000 electric fans manufactured by a

company, it was found that lifetime of the fans was normally
distributed with an average life of 2050 hours and standard
deviation of 60 hours. On the basis of the information, estimate the
number of fans that is expected to run for
i. More than 2160 hours and
ii. Less than 1920 hours
5. The properties of binominal experiment and poisson experiment:
Binominal Experiment;

1.  Binomial distribution is applicable when the trials are independent and each trial has just
two outcomes success and failure. It is applied in coin tossing experiments, sampling
inspection plan, genetic experiments and so on.

2. Binomial distribution is known as bi-parametric distribution as it is characterized by two

parameters n and p. This means that if the values of n and p are known, then the  distribution is
known completely.

3.  The mean of the binomial distribution is given by 

μ  =  np

4. Depending on the values of the two parameters, binomial distribution may be uni-modal or bi-

To know the mode of binomial distribution, first we have to find the value of (n+1)p. 

(n+1)p is a non integer --------> Uni-modal

Here, the mode  =  the largest integer contained in  (n+1)p

(n+1)p is a integer --------> Bi-modal 

Here, the mode  =  (n+1|)p, (n+1)p - 1

5.  The variance of the binomial distribution is given by

σ²  =  npq

6.  Since p and q are numerically less than or equal to 1,

npq < np

That is, variance of a binomial variable is always less than its mean.

7.  Variance of binomial variable X attains its maximum value at p = q = 0.5 and this maximum
value is n/4.
8. Additive property of binomial distribution.

Let X and Y be the two independent binomial variables. 

X is having the parameters n₁ and p 


Y is having the parameters n₂ and p. 

Then (X+Y) will also be a binomial variable with the parameters (n₁ + n₂) and p

6.What is stratified sampling? Give an example. Also mention the

advantage and disadvantage of stratified sampling.

A stratified sample is one that ensures that subgroups (strata) of a given population are each
adequately represented within the whole sample population of a research study.

For example, one might divide a sample of adults into subgroups by age, like 18–29, 30–39, 40–
49, 50–59, and 60 and above. To stratify this sample, the researcher would then randomly select
proportional amounts of people from each age group. This is an effective sampling technique for
studying how a trend or issue might differ across subgroups.

Advantage and Disadvantage

Advantage of stratified sampling

 More accurate samples

 Can be used for both proportionate and disproportionate samples.

Disadvantage of stratified sampling

 Identification of all the number of population is difficult

 Difficult to make sub group