31-Jan-20

Business Research Method

Prof. Ravi Shekhar Kumar

XLRI- Xavier School of Management, Jamshedpur

ravishekhar@xlri.ac.in

Session-6

Sampling
• Census Vs. Sampling
– Sampling is the selection of a subset (a statistical sample) of
individuals from within a statistical population to estimate
characteristics of the whole population
– Why Proper Sampling is important?

• Target Population
• Sampling Frame
– A representation of the elements of the target population. It consists
of a list or set of directions for identifying the target population
• Sampling technique & Sample Size

1
 31-Jan-20

Classification of Sampling Techniques

Sampling Techniques

Nonprobability Probability
Sampling Sampling

Convenience Judgmental Quota Snowball

Sampling Sampling Sampling Sampling

Simple Random Systematic Stratified Cluster

Sampling Sampling Sampling Sampling

Convenience Sampling
• Convenience sampling attempts to obtain a sample of
convenient elements. Often, respondents are selected
because they happen to be in the right place at the right
time.
– use of students, and members of social organizations
– mall intercept interviews without qualifying the
respondents
– “people on the street” interviews

2
 31-Jan-20

Judgmental Sampling
• Judgmental sampling is a form of convenience sampling in
which the population elements are selected based on the
judgment of the researcher.
– test markets
– purchase engineers selected in industrial marketing
research
– expert witnesses used in court

Quota Sampling
• Quota sampling may be viewed as two-stage restricted
judgmental sampling.
– The first stage consists of developing control categories, or quotas,
of population elements.
– In the second stage, sample elements are selected based on
convenience or judgment.

Population Sample
composition composition
Control
Characteristic % % Number
Sex
Male 48 48 480
Female 52 52 520
____ ____ ____
100 100 1000

3
 31-Jan-20

Snowball Sampling
• In snowball sampling, an initial group of respondents is
selected, usually at random.
• After being interviewed, these respondents are asked to
identify others who belong to the target population of
interest.
• Subsequent respondents are selected based on the
referrals.

Classification of Sampling Techniques

Sampling Techniques

Nonprobability Probability
Sampling Techniques Sampling Techniques

Convenience Judgmental Quota Snowball

Sampling Sampling Sampling Sampling

Simple Random Systematic Stratified Cluster

Sampling Sampling Sampling Sampling

4
 31-Jan-20

Simple Random Sampling

• Each element in the population has a known & equal
probability of selection.
• Each possible sample of a given size (n) has a known and
equal probability of being the sample actually selected.
• This implies that every element is selected independently
of every other element.

Systematic Sampling
• The sample is chosen by selecting a random starting point
and then picking every ith element in succession from the
sampling frame.
– For example, there are 100,000 elements in the population and a
sample of 1,000 is desired. In this case the sampling interval, i, is
100. A random number between 1 and 100 is selected. If, for
example, this number is 23, the sample consists of elements 23, 123,
223, 323, 423, 523, and so on.

10

5
 31-Jan-20

Stratified Sampling
• A two-step process in which the population is partitioned
into subpopulations, or strata.
– The strata should be mutually exclusive & collectively
exhaustive in that every population element should be assigned to
one and only one stratum and no population elements should be
omitted.
– Next, elements are selected from each stratum by a random
procedure, usually SRS.
• A major objective of stratified sampling is to increase
precision without increasing cost.
• The elements within a stratum should be as homogeneous
as possible, but the elements in different strata should be as
heterogeneous as possible.

11

Cluster Sampling
• The target population is first divided into mutually exclusive
and collectively exhaustive subpopulations, or clusters.
• Then a random sample of clusters is selected, based on a
probability sampling technique such as SRS.
• For each selected cluster, either all the elements are
included in the sample (one-stage) or a sample of elements
is drawn probabilistically (two-stage).
• Elements within a cluster should be as heterogeneous as
possible, but clusters themselves should be as
homogeneous as possible. Ideally, each cluster should be a
small-scale representation of the population.

12

6

Technique Strengths
Nonprobability Sampling
Convenience sampling Least expensive, least
time-consuming, most
convenient
Judgmental sampling Low cost, convenient,
not time-consuming
Quota sampling Sample can be controlled
for certain characteristics
Snowball sampling Can estimate rare
characteristics
Probability sampling
Simple random sampling Easily understood,
results projectable
Systematic sampling Can increase
representativeness,
easier to implement than
SRS, sampling frame not
necessary
Stratified sampling Include all important
subpopulations,
precision
Cluster sampling Easy to implement, cost
effective
13
Sampling Plan: Qualitative Study
14
31-Jan-20
Weaknesses
Selection bias, sample not
representative, not recommended for
descriptive or causal research
Does not allow generalization,
subjective
Selection bias, no assurance of
representativeness
Time-consuming
Difficult to construct sampling
frame, expensive, lower precision,
no assurance of representativeness.
Can decrease representativeness
Difficult to select relevant
stratification variables, not feasible to
stratify on many variables, expensive
Imprecise, difficult to compute and
interpret results
7
 31-Jan-20

Sampling for Qualitative Research

• Type of sampling: Purposive - Always (Non-probability-
Judgmental or Convenience).
• Qualitative research needs to represent the ‘spectrum’ of all
possible points of view on the given topic

• Guideline on Sample Size

15

A few recruitment do’s & don’ts

• Don’t make the recruitment criteria so stringent that you are
meeting a very small niche compared to your universe
• Mask the category you want to research
– Else the participant rehearses & comes as the consultant
• Attempt to get homogenous sets unless the design includes a
conflict group
– Mixed gender groups don’t work due to high socially desirable behaviour
patterns or impression management efforts
• Don’t put in only 2 peer groups into a single group – can result in
group conflict
– Never more than 2 friends even in a peer group …unless the entire group is
one group of friends …but then you need many such groups
• For creative/ developmental interactions pre-decide if you want
creative/ better than average consumers
– Check for creativity

16

8
 31-Jan-20

Review of what we have done till now…

• Introduction: Research
• Problem Definition
• Approach to Problem
• Research Design
• Qualitative Research
• Measurement Scale
• Questionnaire Designing
• Sampling

17

17

Hypothesis Testing: Introduction

18

9
 31-Jan-20

Null vs. Alternate Hypothesis

• Null Hypothesis (H0): is a statement about a population, this is
assumed to be true.
– … is generally assumed to be true until evidence indicates
otherwise.
– … is a statement of the status quo, one of no difference or no effect.
– If null hypothesis is not rejected, no changes will be made.

• Alternate Hypothesis (H1): is a statement that directly contradicts

a null hypothesis by stating contrary thing about population.
– … is one in which some difference or effect is expected.
– … is a statement that is hoped or expected to be true instead of null
hypothesis.
– Accepting alternative hypothesis will lead to changes in opinions or
actions.

19

Hypothesis Formulation: Illustration-1

• A box is designed to have 25 kg of apples. Farmers fill such
boxes in the field & then boxes are sold to retailer. Retailers
complain that many boxes do not contain 25 kg of apples. In
order to investigate the issue, research to be conducted.
– Develop null & alternate hypothesis for this issue

• Ho μ > 25
• H1 μ < 25
– Take action if Ho is rejected (H1 is accepted).

• One tail study.

20

20

10
 31-Jan-20

Hypothesis Formulation: Illustration-2

• Bags of passenger in air travel (Mean of weight should be
20 kg). Airline wants to investigate the issue, to see whether
weight of bag is more than 20 kg or not.
– Develop null & alternate hypothesis for this issue

• Ho μ < 20
• H1 μ > 20
– Take action if Ho is rejected (H1 is accepted).

• One tail study.

21

21

Hypothesis Formulation: Illustration-3

• Mean of Mileage of motorbike is expected to be 50 kmpl.
The company wants to investigate whether mileage is 50
kmpl or not.
– Develop null & alternate hypothesis for this issue

• Ho μ = 50
• H1 μ =/ 50
– Take action if Ho is rejected (H1 is accepted).

• Two-Tail Study

22

22

11
 31-Jan-20

Department Store: Illustration

• RQ
– Do the customers of Big Bazar exhibit store loyalty and what is their
characteristics?

• Hypothesis (alternate)
– H1: Customers who are store loyal are less knowledgeable about
the shopping environment.
– H2: Store-loyal customers are more risk-averse than are non-loyal
customers.
– H3: Customers of Big Bazar are loyal.

23

Department Store: Illustration

• Hypothesis (Null vs. alternate)

– H0: Customers who are store loyal are more or as (at least as)
knowledgeable about the shopping environment as other
customers.
– H1: Customers who are store loyal are less knowledgeable about
the shopping environment.

– H0: Store-loyal customers are less or as risk-averse as non-loyal

customers.
– H1: Store-loyal customers are more risk-averse than are non-loyal
customers.

– H0: Customers of Big Bazar are not loyal.

– H1: Customers of Big Bazar are loyal.

24

12
 31-Jan-20

Types of Hypotheses

Null
– H0: μ = 50
– H0: μ < 50
– H0: μ > 50
Alternate
– HA: μ =/ 50
– HA: μ > 50
– HA: μ < 50

25

25

One tail Study

26

26

13
 31-Jan-20

Two-tail Study

27

27

Hypothesis Testing: Introduction

• Hypothesis Testing is a method for testing a claim or
hypothesis about a parameter in a population, using data
measured in a sample.
– In other words, it is a systematic way to test claims or ideas about a
group or population.

• Level of significance refers to a criterion of judgment

upon which a decision is made regarding the value stated in
a null hypothesis.
– The criterion is based on the probability of obtaining a statistic
measured in a sample if the value stated in the null hypothesis were
true.

28

28

14
 31-Jan-20

Hypothesis Testing: Calculation

• Test statistic is a mathematical formula that allows researchers
to determine the likelihood of obtaining sample outcomes if the
null hypothesis were true. The value of the test statistic is used to
make a decision regarding the null hypothesis.

• A p value is the probability of obtaining a sample outcome,

given that the value stated in the null hypothesis is true.
– p value for obtaining a sample outcome is compared to the level of
significance.

29

29

Decision about Hypothesis

• Reject the null hypothesis
– The sample mean is associated with a low probability of
occurrence when the null hypothesis is true.

• Do not reject (Retain) the null hypothesis

– The sample mean is associated with a high probability of
occurrence when the null hypothesis is true.

• Note:
– A null hypothesis may be rejected, but it can never be accepted
based on a single test.
– In classical hypothesis testing, there is no way to determine whether
the null hypothesis is true.
30

30

15
 31-Jan-20

Choose a Level of Significance

• Type I Error: false positives
– Type I error occurs when the sample results lead to the rejection of
null hypothesis when it is in fact true.
– Probability of type I error (α ) is also called level of significance.

• Type II Error: false negatives

– Type II error occurs when, based on the sample results, null
hypothesis is not rejected when it is in fact false.
– Probability of type II error is denoted by β .

31

31

A Broad Classification of Hypothesis Tests

Hypothesis Tests

Tests of Tests of
Association Differences

Median/
Distributions Means Proportions Rankings

32

32

16
 31-Jan-20

Frequency Distribution

33

Frequency Distribution
• In a frequency distribution, one variable is considered at a
time.
– A frequency distribution for a variable produces a table of
frequency counts, percentages, & cumulative percentages for all
values associated with that variable.

• Statistics Associated with Frequency Distribution

– Measures of Location
– Measures of Variability
– Measures of Shape

34

34

17
 31-Jan-20

Measures of Location
• Mean
– Most commonly used measure of central tendency.
– Used when data is in interval or ratio scale.
• Median
– Middle value when data are arranged in ascending or descending
order. It is the 50th percentile.
– When data is in Ordinal Scale & also interval or ratio scale
• Mode
– The value that occurs most frequently & represents the highest
peak of the distribution.
– Mode is a good measure of location when the variable is inherently
categorical or has otherwise been grouped into categories.

35

35

Measures of Variablity
• Variability is a measure of the dispersion or spread of
scores in a distribution.
– Variability ranges from 0 to ∝.
• Range
• Interquartile Range
• Variance
– Mean squared deviation from the mean. The variance can never be
negative.
• Standard Deviation
– Square root of the variance.
• Coefficient of variation
– Ratio of SD to the mean expressed as a percentage & is a unitless
measure of relative variability.
– Can be used with ratio scale only.
36

36

18
 31-Jan-20

Measures of Shape: Skweness

• Skewness: A skewed distribution is a distribution of scores
that includes outliers or scores that fall substantially above
or below most other scores in a data set.
– Tendency of deviations from mean to be larger in one direction than
in the other. It can be thought of as tendency for one tail of the
distribution to be heavier than other.

Symmetric Distribution
Skewed Distribution

Mean Mean Median

Median Mode
Mode 37

37

Measures of Shape: Skewness of distribution

• A positively skewed
distribution is a
distribution of scores
where a few outliers are
substantially larger (toward
the right tail in a graph)
than most other scores.

• A negatively skewed
distribution is a
distribution of scores
where a few outliers are
substantially smaller
(toward the left tail in a
graph) than most other
scores. 38

38

19
 31-Jan-20

Measures of Shape: Kurtosis

• Kurtosis
– Measure of the relative peakedness or flatness of the
curve defined by frequency distribution.

• Kurtosis of a normal distribution is zero.

• If kurtosis is positive, distribution is more peaked than a
normal distribution.
• A negative value means that distribution is flatter than a
normal distribution.

39

39

40

20