LECTURE 5

SAMPLING FUNDAMENTALS
CONTENT
Sampling Design
Determination of Sample Size
PART 1
SAMPLING DESIGN
Census and Sample Survey
All items in any field of inquiry constitute a Universe or
Population.
A complete enumeration of all items in the population is
known as a census inquiry.
It can be presumed that in such an inquiry, when all items are
covered, no element of chance is left and highest accuracy is
obtained.
But in practice this may not be true. Even the slightest
element of bias in such an inquiry will get larger and larger as
the number of observation increases. this type of inquiry
Census involves a great deal of time, money and energy.
Steps in Sampling Design
Types of Universe
Sampling Unit
Source List
Size of Sample
Parameters of Interest
Budgetary Constraint
Sampling Procedure
Some Sampling Definitions
Universe/Population: 'Universe refers to the total of the
items or units in any field of inquiry, whereas the term
population refers to the total of items about which
information is desired. The population or universe can be
finite or infinite.
Sampling Frame: A list containing all such sampling units
is known as sampling frame.
Sampling Design: A sample design is a definite plan for
obtaining a sample from the sampling frame.
Sampling Frame/Design
Some Sampling Definitions
Statistics and parameters: A statistic is a
characteristic of a sample, whereas a parameter is a
characteristic of a population.
Sampling Error: Sample surveys do imply the study
of a small portion of the population and as such there
would naturally be a certain amount of inaccuracy in
the information collected. This inaccuracy may be
termed as sampling error or error variance.
Sampling Distribution: It is distribution of particular
statistical characteristic of samples. If sample size is
large, generally it is normal in nature.
Properties of Normal Distributions
1. The mean, median, and mode are equal.
2. The normal curve is bell-shaped and symmetric about
the mean.
3. The total area under the curve is equal to one.
4. The normal curve approaches, but never touches the x-
axis as it extends farther and farther away from the
mean.

Total area = 1

x

Properties of Normal Distributions
5. Between and + (in the center of the curve),
the graph curves downward. The graph curves upward
to the left of and to the right of + . The points
at which the curve changes from curving upward to
curving downward are called the inflection points.

Inflection points

x
3 2 + + 2 + 3
The Standard Normal Distribution
Standard normal distribution
A normal distribution with a mean of 0 and a standard
deviation of 1.

Area = 1

z
3 2 1 0 1 2 3
Any x-value can be transformed into a z-score by
using the formula
Value - Mean x-
z
Standard deviation
The Central Limit Theorem
If samples of size n 30, are drawn from any population
with mean = and standard deviation = ,

x

then the sampling distribution of the sample
means approximates a normal distribution.
The greater the sample size, the better the
approximation. xx
x x
x x x
x x x x x x

The Central Limit Theorem
2. If the population itself is normally distributed,

x

the sampling distribution of the sample means is
normally distribution for any sample size n.
xx
x x
x x x
x x x x x
x

The Central Limit Theorem
In either case, the sampling distribution of sample means
has a mean equal to the population mean.
x
The sampling distribution of sample means has a
variance equal to 1/n times the variance of the population
and a standard deviation equal to the population standard
deviation divided by the square root of n.

p2

2
Variance
x
n
p
x Standard deviation (standard
n error of the mean)
The Central Limit Theorem
1. Any Population Distribution 2. Normal Population Distribution
p
p

Distribution of Sample Distribution of Sample

Means, n 30 Means, (any n)
p p
Sample Sampling Distribution Population
Characteristics Characteristics are
are called called statistics
statistics N)
Distribution standard
deviation
Some Sampling Definitions
Precision: It is the range within which the population
average (or other parameter) will lie in accordance with
the reliability specified in the confidence level as a
percentage of the estimate or as a numerical quantity.
For instance, if the estimate is $ 4000 and the precision
desired is 4%, then the true value will be no less than $
3840 and no more than $ 4160.
Confidence level and significance level: The
confidence level or reliability is the expected percentage
of times that the actual value will fall within the stated
precision limits. significance level indicates the likelihood
that the answer will fall outside that range.
Estimating Population Mean
The mean of the distribution of sample means is equal to
the population mean.
Concept of Standard Error
The standard deviation of sampling
distribution of statistics is known as
standard error.
The standard error enables us to specify
the limits within which the parameters of
the population are expected to lie with a
specified degree of confidence. Such an
interval is usually known as confidence
interval.
Standard Error (of Mean) Estimation

For Finite
Population
Problems
Problems
The foreman of ABC mining company has estimated the
average quantity of iron ore extracted to be 36.8 tons per
shift and the sample standard deviation to be 2.8 tons per
shift, based upon a random selection of 4 shifts. Construct
a 90 per cent confidence interval around this estimate.

A market research survey in which 64 consumers were

contacted states that 64 per cent of all consumers of a
certain product were motivated by the products advertising.
Find the confidence limits for the proportion of consumers
motivated by advertising in the population, given a
confidence level equal to 0.95.
Criteria of Selecting Sampling Procedure
The two reasons for Incorrect inferences in sampling are:
Systematic bias
Sampling error
The reasons for systematic bias are:
Inappropriate sampling frame
Defective Sampling device
Non respondent
Indeterminacy principle
Natural bias in reporting data
Sampling Error
Sampling errors are the random variations
in the sample estimates around the true
population parameters.
Since they occur randomly and are equally
likely to be in either direction, their nature
happens to be of compensatory type and
the expected value of such errors happens
to be equal to zero.
Sampling Error
Unrestricted and Restricted Sampling
When each sample element is drawn
individually from the population at
large, then the sample so drawn is
known as unrestricted sample,
whereas all other forms of sampling are
covered under the term restricted
sampling.
Non-Probability Sampling
Non-probability sampling is that sampling
procedure which does not afford any basis
for estimating the probability that each item
in the population has of being included in
the sample.
In this type of sampling, items for the
sample are selected deliberately by the
researcher; his choice concerning the
items remains supreme.
Probability Sampling
Probability sampling is also known as
random sampling or chance sampling.
Under this sampling design, every item of
the universe has an equal chance of
inclusion in the sample.
Simple Random Sampling
It gives each element in the population an
equal probability of getting into the sample;
and all choices are independent of one
another.
It gives each possible sample combination
an equal probability of being chosen.
Method of Selecting Random Sample
Writing each possible combinations on
a piece of paper and selecting the
required no by lottery.
Writing name of each element in piece
of paper and select the sample
element by lottery.
Use of Random numbers (Tippet,
Yates)
Complex Random sampling
Systematic Sampling: Select ith item from the list.
To bring randomness, select the first item
randomly.
Stratified Sampling: The population is first divided
into sub population called strata and then items
from each stratums are selected to form sample.
strata be formed on the basis of common
characteristic(s) of the items to be put in each
stratum. For selection of items for the sample from
each stratum, simple random sampling or
systematic sampling is applied.
Proportionate Stratified random Sampling
If N=Population size
n= Sample size
N1, N2, N3.. Ni .Nk= Strata such that
N1+N2+N3+Ni..+Nk=N or
n1, n2, n3.ni = items drawn from stratums N1, N2,
NiNk such as
n1+ n2+ n3+ni+nk = n
Then
Disproportionate Stratified random Sampling
Disproportionate Stratified random Sampling with
cost variation
Other Complex Random Sampling Types
Cluster Sampling: If the total area of
interest happens to be a big one, a
convenient way in which a sample can be
taken is to divide the area into a number of
smaller non-overlapping areas and then to
randomly select a number of these smaller
areas (usually called clusters), with the
ultimate sample consisting of all (or samples
of) units in these small areas or clusters.
Other Complex Random Sampling Types
Area Sampling: If clusters happen to be
some geographic subdivisions, in that case
cluster sampling is better known as area
sampling.
Multistage Sampling: Samples are
selected in stages.
Sequential Sampling: Used in statistical
quality control.
Reading/Practice Assignment
Read Chapter 4 Sampling Design From Research
Methodology By C R Kothari and prepare the answers of
unsolved exercise at the end of book chapter.
Numerical Problems
Problem 1. The following are the number of departmental stores in 10 cities:
35, 27, 24, 32, 42, 30, 34, 40, 29 and 38. If we want to select a sample of 15
stores using cities as clusters and selecting within clusters proportional to
size, how many stores from each city should be chosen? (Use a starting point
of 4).

Problem 2: A certain population is divided into five strata so that N1 = 2000,

N2 = 2000, N3 = 1800, N4 = 1700, and N5 = 2500. Respective standard
deviations are: s1 = 1.6 , s2 = 2.0 , s3 = 4.4 , s4 = 4.8 , s5 = 6.0 and further the
expected sampling cost in the first two strata is $ 4 per interview and in the
remaining three strata the sampling cost is $ 6 per interview. How should a
sample of size n = 226 be allocated to five strata if we adopt proportionate
sampling design; if we adopt disproportionate sampling design considering
(i) only the differences in stratum variability
(ii) differences in stratum variability as well as the differences in stratum
sampling costs.
PART 2
DETERMINATION OF SAMPLING SIZE
Sample Size Estimation (infinite population)
Sample Size Estimation (finite population)
 Sample Size for Variables
Infinite Population Finite Population
Confidence interval for Confidence interval for
population mean population mean
=
 Sample Size for Proportion
Infinite Population Finite Population
Confidence interval for
population mean
=
Problems
Determine the size of the sample for estimating the true
weight of the cereal containers for the universe with N =
5000 on the basis of the following information:
The variance of weight = 4 ounces on the basis of past
records.
Estimate should be within 0.8 ounces of the true average
weight with 99% probability.
Will there be a change in the size of the sample if we
assume infinite population in the given case? If so, explain
by how much?
Books Referred
Kothari C R, Research Methodology Methods and
Techniques, Wishwa Prakashan, New Delhi, Third Edition
2008
Kumar R., Research Methodology a step-by-step guide
for beginners, SAGE publication, Third edition.
Sekaran U., Research Methods for Business, John
Wiley & Sons, Inc , Fourth edition.