Research Methods in Accounting & Finance
SAMPLING IN RESEARCH
RESEARCH METHODS IN ACCOUNTING & FINANCE
SAMPLING IN RESEARCH
LEARNING OBJECTIVES:
After completing this lesson, you should be able to:
 Understand the concept of sampling in research
 Observe the advantages and disadvantages of sampling
 Explain the factors to be considered for sampling
 Recognize different sampling methods
MEANING, ADVANTAGES AND DISADVANTAGES OF SAMPLING
The idea of 'sample' is linked to that of 'population`. The whole
group from which the sample is drawn is technically known as
universe or population and the group actually selected for a
study is known as sample. Population refers to all of the cases.
Since it is usually difficult for any researcher to study the entire
universe or the total population (people or things) he/she
proposes to investigate, it becomes incumbent upon him/her to
select a portion of elements taken from the larger portion or
population. Such a portion is referred as a sample and the
process of drawing these elements from the larger population or
universe is called the sampling method.
The vastness of population and the difficulties of ascertaining the
universe make sampling the best alternative in case of social
studies. But while selecting a sample, proper care is required by
selecting the sample out of the population by scientifically proved
methods, minimizing the chances of bias/errors and ultimately
acquiring a representative sample.
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A.S.KANNAN Assistant Professor
STRATA/SUB-POPULATION
Stratification is a technique of dividing the whole group from
which the sample is drawn/the population into a number of
strata or groups, and thereby those strata are called sub-
population. Again the reason to adopt these techniques may be
the vastness of population or other difficulties of ascertaining the
universe by taking samples from the whole population.
ADVANTAGES OF SAMPLING
The sample survey provides a flexible method that can be adapted
to almost every requirement of data collection. It covers many
circumstances in which inferences about population are required.
The advantages of sample surveys are thus summed up:
 ECONOMY: This includes economy of cost and of time because
only a limited number of units have to be examined and
analyzed. Generally, sample study requires less money. The
space and equipment required for this study are very small,
for it involves the study of a smaller number of cases.
 ACCURACY: The quality of data collected should be better
because the quality of enumeration and supervision can be
higher than in a census. It ensures completeness and a high
degree of accuracy due to small area of operation.
 ADAPTABILITY: Many topics, particularly those involving
detailed transactions of individuals or households, can not
conceivably be covered by a census. A sample is the only
mode of inquiry available.
 FEASIBILITY: The administrative feasibility of a sampling plan
as compared to the complex organization required for a
census of the total population.
 ORGANIZATIONAL FACILITIES: Sampling involves very few
organizational problems as is conducted by few enumerators.
School of Business & Economics
 Research Methods in Accounting & Finance
SAMPLING IN RESEARCH

 RELIABLE INFERENCES: The data collected by well-trained
investigators on a sample basis are quite reliable.
 INTENSIVE IN NATURE: Since the area of the study is quite small
a detailed and intensive study is possible.
 VAST DATA: When the numbers of units are very large, or the
units are scattered, sampling technique is very useful, and
can be conducted in a convenient manner.
SAMPLING ERRORS
Although one of the advantages of the sampling method is that it
saves both time and money and obtains information that could
not be obtained in any other way, the method is not free from
errors. As a sample includes a few members of the group or
population which is being sampled, necessarily excluding the
others, the information from samples is unlikely to be completely
accurate. A sample average, for example, will almost certainly
differ from that which would have been obtained from the whole
population, had such an inquiry been possible or undertaken.
This difference is known as sampling error, and the usefulness of
the sample results must depend on the size of this error and the
possibility of measuring it. These sampling errors are also
aspects of disadvantages of the sampling method.
The size of these errors depends on three factors: First, the size of
the sample. Results from large samples are generally more
reliable than results from small samples. Second, the variability
of the population or group from which it is taken. Thus, if the
members of the population are all alike, every sample will give the
sample result; but the more the members of the population differ
amongst themselves, the greater the error that can be introduced
into the sample by the inclusion of some individuals and the
exclusion of others. Third, the way the sample is chosen.
Obviously a researcher requires a sample which is free from bias
and representative of the population of which it is a part. This
can only be achieved in practice by using some form of random or
scientific sampling.
DISADVANTAGES OF SAMPLING
Sampling has the following demerits:
 LESS ACCURACY: If the method of sampling is faulty, the
conclusions derived from this become inaccurate.
 DIFFICULTIES IN SELECTING A REPRESENTATIVE SAMPLE: If the
phenomena are of complex nature, the selection of
representative sample is very difficult.
 CHANGEABILITY OF UNITS: If the units are not homogenous, the
sampling technique will be hazardous and unscientific.
 NEED OF SPECIALIZED KNOWLEDGE: The sampling technique
becomes scientific and successful when it is done by
specialized investigators. If this is done by ordinary people the
conclusions derived from this technique may be biased and
sometimes entirely wrong.
ASSUMPTIONS IN SAMPLING
The selection of a sample as representative of the whole group is
based upon some assumptions which are given below:
 The units or samples selected must have likeness or similarity
with other units to make the sampling more scientific.
 The sample should be such that it can represent adequately
the whole data.
 Absolute accuracy is not essential in the sample method. The
results of the sampling method should be such that valid
generalizations can be drawn.

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A.S.KANNAN Assistant Professor School of Business & Economics
 Research Methods in Accounting & Finance
SAMPLING IN RESEARCH

 The maximum amount of information must be gathered as
accurately as possible.
 Each unit should be free to be included in the sample.
FACTORS TO BE CONSIDERED WHILE SAMPLING
In selecting ways of choosing samples for the collection of social
and economic data, the best method for any inquiry will depend
on both the nature of the population to be sampled, the time and
money available for investigation, and the degree of accuracy
required. It should, however, be emphasized that a sample ought
to be representative of the population under study. Essentially,
inference from sample to populations is a matter of confidence
that can be placed in the representativeness of the sample. A
sample is representative to the degree to which it reflects the
characteristics of population.
It must also be stressed that the representativeness of a sample is
difficult, if not impossible, to check. It depends upon the degree of
precision with which the population is specified, the adequacy of
the sample and the heterogeneity of the population. Confidence in
the representativeness of a sample is increased if the population
is well defined. In another way adequacy of the sample is also an
important consideration in case a very small sample is taken. To
be adequate a sample must be of sufficient size to allow the
researcher to have confidence in the inference. Finally, it must
also be stated that representativeness depends on the degree of
homogeneity of the population. The more alike the units of the
population, the smaller the sample can be and still be
representative. To choose a representative sample is the most
difficult exercise in the sampling process.
To conclude, it is clear that though the procedure of selecting a
sample differs according to the type of the sample selected,
certain fundamental rules remain the same. These include:
 The universe or population must be defined precisely;
 Before drawing a sample, the unit of the sample should be
defined;
 The appropriate source list which contains the names of the
units of universe or population from which the sample is to be
selected should be prepared before hand in case it does not
already exist; and
 The size of the sample to be selected should be pre-
determined.
PROBABILITY SAMPLING
In probability sampling, statistical inferences about the
population can be made from the responses of the sample. For
this reason, probability sampling is sometimes referred to as
representative sampling. The sample is taken as representative of
the population. In non-probability samples, you cannot make
such statistical inferences. It may still be possible to say
something sensible about the population from non-probability
samples-but not on the same kind of statistical grounds.
Probability samples are classified into the following five types of
sampling methods:
SIMPLE RANDOM SAMPLING: This involves selection at random from
the sampling frame of the required number of persons for the
sample. If properly conducted, this gives each person an equal
chance of being included in the sample, and also makes all
possible combination of persons for a particular sample size
equally likely. So, random sampling is the form applied when the

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A.S.KANNAN Assistant Professor School of Business & Economics
 Research Methods in Accounting & Finance
SAMPLING IN RESEARCH

method of selection assures each element or individual in the
universe an equal chance of being chosen. It is more suitable in
more homogeneous and comparatively larger groups. A random
sample can be drawn either by lottery method or by using Tipett’s
number or by grid system or by selecting from sequential list.
SYSTEMATIC SAMPLING: This involves choosing a starting point in
the sampling frame at random, and then choosing every n th
person. Thus if a sample of fifty is required from a population of
2,000, then every fortieth person is chosen. The problem of
simple random and systematic samplings is, that both require a
full list of the population, and getting this list is often difficult.
STRATIFIED RANDOM SAMPLING: This involves dividing the universe
or population into a number of groups or strata, where members
of a group share a particular characteristic or characteristics (e.g.
stratum A may be females; stratum B males). There is then
random sampling within the strata. It is usual to have
proportionate sampling. It may sometimes be helpful to have dis-
proportionate sampling, where there is an unequal weighting. It is
possible to combine stratification with systematic sampling
procedures. It is the combination of both random sampling and
purposive selection. In the selection of strata, we use purposive
selection method, but in selecting actual units from each
stratum, random method is used.
CLUSTER/AREA SAMPLING: This involves dividing the population
into a number of units, or clusters, each of which contains
individuals having a range of characteristics. The clusters
themselves are chosen on a random basis. The subpopulation
within the cluster is then chosen. This tactic is particularly useful
when a population is widely dispersed and large, requiring a great
deal of effort and travel to get the survey information. An
example might involve school children, where there is initially
random sampling of a number of schools, and then testing of all
the pupils in each school. This method has the valuable feature
that it can be used when the sampling frame is not known (e.g.
when we do not have full list of children in the population, in the
above example).
MULTISTAGE SAMPLING: This is an extension of cluster sampling.
This method is generally used in selecting a sample from a very
large area. It involves selecting the sample in stages, i.e. taking
samples from samples. Thus one might take a random sample of
schools, then a random sample of the classes within each of the
schools, and then from with in selected classes choose a sample
of children. As with cluster sampling, this provides a means of
generating a geographically concentrated sampling.
It is also possible to incorporate stratification into both cluster
and multistage sampling. Judging the relative efficiencies of these
more complicated forms of sampling, and their relationship to the
efficiency of simple random sampling, is difficult, and if you are
expending considerable resources on a survey it is worth seeking
expert advice.
NON-PROBABILITY SAMPLING
In probability sampling it is possible to specify the probability
that any person (or other unit on which the survey is based) will
be included in the sample. Any sampling plan where it is not
possible to do this is called 'non-probability sampling`. Small-
scale surveys commonly employ non-probability samples. They

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A.S.KANNAN Assistant Professor School of Business & Economics
 Research Methods in Accounting & Finance
SAMPLING IN RESEARCH

are usually less complicated to set up and are acceptable when
there is no intention or need to make a statistical generalization
to any population beyond the sample surveyed. They typically
involve the researcher using his judgment to achieve a particular
purpose, and for this reason are sometimes referred to as
purposive samples. The types of non probability sampling
methods are briefed in the following paragraphs:
QUOTA SAMPLING: Here the strategy is to obtain representative of
the various elements of a population, usually in the relative
proportions in which they occur in the population. Quota
sampling is a special form of stratified sampling. According to this
method, the universe is first divided into different strata. Then
the number to be selected from each stratum is decided. This
number is known as quota.
DIMENSIONAL SAMPLING: It is an extension of quota sampling. The
various dimensions thought to be of importance in a survey are
incorporated into the sampling procedure in such a way that at
least one representative of every possible combination of these
factors or dimension is included.
CONVENIENCE SAMPLING: It involves choosing the nearest and
almost convenient persons to act as respondents. The process
continues until the required sample size is reached. It is
sometimes used as a cheap and dirty way of doing a sample
survey. You do not know whether or not findings are
representative. This is probably one of the most widely used and
least satisfactory methods of sampling. This method is generally
known as unsystematic, careless, accidental or opportunistic
sampling. According to this system, a sample is selected
according to convenience of the field workers or researchers. The
convenience may be in respect of availability of source list and
accessibility of the units. It is used when universe or population
is not clearly defined, sampling unit is not clear or a complete
source list is not available.
PURPOSIVE SAMPLING: The principle of selection in purposive
sampling is the researcher's judgment as to typicality or interest.
A sample is built up which enables the researcher to satisfy
his/her specific needs in a research project. Accordingly, when
the researcher deliberately or purposively selects certain units for
study from the population it is known as purposive selection. In
this type of selection the choice of the selector is supreme and
nothing is left to chance. It is more useful especially when some
of the units are very important and, in the opinion of the
researcher, must be included in the sample.
SNOWBALL SAMPLING: Here the researcher identifies one or more
individuals from the population of interest (for e.g. selecting a few
judges, prosecutors or advocates for interview in conducting
research on effectiveness and efficiency of the Federal judiciary
system). After they have been interviewed, they are used as
informants to identify other members of the population, who are
themselves used as informants, and so on. Snowball sampling is
useful when there is difficulty in identifying members of the
population, e.g. when this is a clandestine group. It can be seen
as a particular type of purposive sample. Both approaches tend to
be used in field work types of research, particularly in case
studies and where participant observation is involved.

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A.S.KANNAN Assistant Professor School of Business & Economics