What is simple random sampling?
Because it provides greater precision, a stratified sample often requires a
Definition: Simple random sampling is defined as a sampling technique
where every item in the population has an even chance and likelihood of
being selected in the sample. Here the selection of items entirely depends
on luck or probability, and therefore this sampling technique is also
sometimes known as a method of chances.
Simple random sampling is a fundamental sampling method and can easily
be a component of a more complex sampling method. The main attribute
of this sampling method is that every sample has the same probability of
being chosen.
Simple random sampling methods
Researchers follow these methods to select a simple random sample:
They prepare a list of all the population members initially, and then each
member is marked with a specific number ( for example, there are nth
members, then they will be numbered from 1 to N).
From this population, researchers choose random samples using two ways:
random number tables and random number generator software.
Researchers prefer a random number generator software, as no human
interference is necessary to generate samples.
Two approaches aim to minimize any biases in the process of simple
random sampling:
Method of lottery
Using the lottery method is one of the oldest ways and is a mechanical
example of random sampling. In this method, the researcher gives each
member of the population a number. Researchers draw numbers from the
box randomly to choose samples.
Use of random numbers
The use of random numbers is an alternative method that also involves
numbering the population. The use of a number table similar to the one
below can help with this sampling technique.
CRITERIA FOR A GOOD ESTIMATOR?
Suppose θ(read theta hat) is an estimator of the population parameter, θ.
The estimator θhat takes different values for different samples. If the mean
of all these different estimates is the unknown parameter, θ, then we say
that θ hat is an unbiased estimator of. θhat. Otherwise, it is called a biased
one. It follows from the definition of expectation of a r.v., that θhat is
unbiased if and only if E(θhat) = θ
A good estimator must satisfy three conditions:
Unbiased: The expected value of the estimator must be equal to the mean
of the parameter
Consistent: The value of the estimator approaches the value of the
parameter as the sample size increases
Relatively Efficient: The estimator has the smallest variance of all
estimators which could be used
STRATIFIED SAMPLING
The procedure of partitioning a given population into homogeneous
groups, called strata, and then selecting samples independently from each
stratum is known as stratified sampling. If a sample from each stratum is
selected by random sampling, the procedure will be called stratified
random sampling.
The following is the list of some of the broad principles that one has to keep
in mind while adopting stratified sampling.
1. For obvious reasons, the strata should be non-overlapping and should
together comprise the whole population.
2. To minimise variance within a stratum, the units forming any stratum
should be similar with respect to the study variable.
3. Sometimes administrative convenience may be considered as the basis
for stratification. However, if such strata are not necessariiy homogeneous,
sub-stratification within each geographical stratum may be adopted based
on homogeneity criteria using some ancillary information.
Advantages
A stratified sample can provide greater precision than a simple random
sample of the same size.
CLUSTER SAMPLING
smaller sample, which saves money.
A stratified sample can guard against an "unrepresentative" sample (e.g.,
an all-male sample from a mixed-gender population).
Systematic Sampling
In systematic sampling, one unit is selected randomly and subsequent units
are selected according to a pre-determined system. Invariably uniform
distance is adopted for preassigned system. Systematic samples actually
provide an improvement over simple random samples as the samples are
spread more evenly over the entire populations.
Linear Systematic Sampling The most commonly adopted procedure of
systematic sampling is linear systematic sampling.
Circular Systematic Sampling To overcome the difficult of varying sample
size in a situation when N =/nk the procedure is modified slightly by which a
sample of constant size is always obtained. This procedure is known as
circular systematic sampling
Advantages
Easy to Execute and Understand
Control and Sense of Process
Clustered Selection Eliminated
Low Risk Factor
Goodness of Fit Test
Suppose a simple of individual are classified into k class. the no of individual
falling in the ith class is oi(i=12--k)
Goodness of fit consist in testing the hypothesis (Ho). That the probability
of individual falling in ith class Pi(I=1,2--K).
Here hypothesis Ho is tested that the no of individual falling the ith class is
npi(E) Expected value.
this is to be tested again ith. (Ho is not true) Based on no O1, O2 -----OL and
E1, E2 -----EK There is a way to test validity of Ho.
Control Chart
The concept of control charts is one of the most powerful techniques for
on-line process control. Besides monitoring, control charts are useful also in
the evaluation of capability of a process and in making continuous
improvements in the process.
A control chart is a two-dimensional graph in which x-axis represents the.
sample numbers and y-axis represent a quality characteristic. It has a solid
center line (CL) and two dotted lines called upper control limit (UCL) and
lower control limit (LCL) Thus, the construction of control charts involves
collecting samples periodically from the process, computing the quality
characteristic for each sample and plotting.
a quality characteristic follows a normal distribution or can be
approximated by a normal distribution. Also, we know that the probability
of a normally distributed random variable taking values below μ - 3 σ or
above p + 30, where μ is the mean and σ is the standard deviation, is very
low (equal to 0.0027)
Depending on the nature of quality characteristics, control charts are
divided into two categories: (i) control charts for variables; and (ii) control
charts for attributes.
calculated and compared against the standard values, and the assumed null
The procedure of sampling is called cluster sampling. So, cluster sampling
consists of forming suitable clusters of contiguous population units and
surveying all the units in a sample of clusters selected according to some
appropriate sample selection method. Cluster sampling is a probability
sampling technique where researchers divide the population into multiple
groups (clusters) for research. Researchers then select random groups with
a simple random or systematic random sampling technique for data
collection and data analysis.
Note: That a necessary condition for the validity of above procedure is that
every unit of .the population under study must correspond to one and only
one unit of the cluster so that the total number of sampling units in the list
(frame) will cover all the units of the population under study with no
omission or duplication.
What Is a Moving Average
In statistics, a moving average is a calculation used to analyze data points
by creating a series of averages of different subsets of the full data set. In
finance, a moving average (MA) is a stock indicator that is commonly used
in technical analysis.
Types of Moving Averages
Simple Moving Average
The simplest form of a moving average, known as a simple moving average
(SMA), is calculated by taking the arithmetic mean of a given set of values.
In other words, a set of numbers–or prices in the case of financial
instruments–are added together and then divided by the number of prices
in the set. The formula for calculating the simple moving average of a
security is as follows:
SMA = A1 + A2 +…. + A/n where:
A=Average in period nn=Number of time periods
What is a Binomial Distribution?
A binomial distribution can be thought of as simply the probability of a
SUCCESS or FAILURE outcome in an experiment or survey that is repeated
multiple times. The binomial is a type of distribution that has two possible
outcomes (the prefix “bi” means two, or twice). For example, a coin toss
has only two possible outcomes: heads or tails and taking a test could have
two possible outcomes: pass or fail.
Binomial distributions must also meet the following three criteria:
The number of observations or trials is fixed. In other words, you can only
figure out the probability of something happening if you do it a certain
number of times. This is common sense—if you toss a coin once, your
probability of getting a tails is 50%. If you toss a coin a 20 times, your
probability of getting a tails is very, very close to 100%.
Each observation or trial is independent. In other words, none of your
trials have an effect on the probability of the next trial.
The probability of success (tails, heads, fail or pass) is exactly the same from
one trial to another.
What Is a T-Test?
A t-test is a type of inferential statistic used to determine if there is a
significant difference between the means of two groups, which may be
related in certain features.
A t-test looks at the t-statistic, the t-distribution values, and the degrees of
freedom to determine the statistical significance
Mathematically, the t-test takes a sample from each of the two sets and
establishes the problem statement by assuming a null hypothesis that the
two means are equal. Based on the applicable formulas, certain values are
hypothesis is accepted or rejected accordingly
If the null hypothesis qualifies to be rejected, it indicates that data readings
are strong and are probably not due to chance. The t-test is just one of
many tests used for this purpose. Statisticians must additionally use tests
other than the t-test to examine more variables and tests with larger
sample sizes. For a large sample size, statisticians use a z-test. Other testing
options include the chi-square test and the f-test
What Is a Z-Test?
A z-test is a statistical test used to determine whether two population
means are different when the variances are known and the sample size is
large.
A z-statistic, or z-score, is a number representing how many standard
deviations above or below the mean population a score derived from a z-
test is.
A z-test is a statistical test to determine whether two population means are
different when the variances are known and the sample size is large.
It can be used to test hypotheses in which the z-test follows a normal
distribution.
A z-statistic, or z-score, is a number representing the result from the z-test.
Z-tests are closely related to t-tests, but t-tests are best performed when an
experiment has a small sample size.
Also, t-tests assume the standard deviation is unknown, while z-tests
assume it is known.
Hypothesis Test
The z-test is also a hypothesis test in which the z-statistic follows a normal
distribution. The z-test is best used for greater-than-30 samples because,
under the central limit theorem, as the number of samples gets larger, the
samples are considered to be approximately normally distributed. When
conducting a z-test, the null and alternative hypotheses, alpha and z-
score should be stated. Next, the test statistic should be calculated, and the
results and conclusion stated.
Paired t-test
Suppose a sample of n students were given a diagnostic test before
studying a particular module and then again after completing the module.
We want to find out if, in general, our teaching leads to improvements in
students’ knowledge/skills (i.e. test scores). We can use the results from
our sample of students to draw conclusions about the impact of this
module in general.
Let x = test score before the module, y = test score after the module
To test the null hypothesis that the true mean difference is zero, the
procedure is as follows:
1. Calculate the difference (di = yi − xi) between the two observaMons on
each pair, making sure you distinguish between positive and negative
differences.
2. Calculate the mean difference, ¯d.
3. Calculate the standard deviation of the differences, sd, and use this to
calculate the standard error of the mean difference, SE(d) = √ sd n
4. Calculate the t-statistic, which is given by T = ¯d /SE(d) Under the null
hypothesis, this statistic follows a t-distribution with n − 1 degrees of
freedom. 5. Use tables of the t-distribution to compare your value for T to
the tn−1 distribuMon. This will give the p-value for the paired t-test.