AK0047

ACCOUNTING
RESEARCH
M E T H O D O LO G Y
Sampling

A C C O U N TIN G
PROGRAM
L e a r n i n g Objective
After completing Chapter 1 0 students should be able to:
• Define sampling, sample, population, element, sampling
unit, adn subject.
• Discuss statistical terms in sampling.
• Describe and discuss the sampling process.
• Compare and contrast spesifict probability sampling design.
• Compare and contrast spesifict nonprobability sampling
design.
• Discuss how hypoteses can be tested with sample data.
• Discuss the factors to be taken into consideration for
determining sample size and determine the sample size for
any given research project.
• Discuss sampling in qualitative research.
• Discuss the role of the manager in sampling.
S u b ject
1. Population, Element, Sample, Sampling Unit, and
Subject
2. Sample Data and Population Values
3. The Sampling Process
4. Probability Sampling
5. Nonprobability Sampling
6. Issues of Precision and Confidence in Determining
Sample Size
7. Sample Data and Hypothesis Testing
8. The Sample Size
9.Sampling a s Related to Qualitative Studies
10.Managerial Implication
Population, Element, S a m p l e ,
S a m p l i n g Unit, a n d S u bject
• Po p u l a t i o n
The population refers to the entire group of people, events,
or things of interest that the researcher wishes to
investigate.
• Element
An element is a single member of the population.
• Sample
A sample is a subset of the population. It comprises s o m e
members to selected from it. In other words, some, but not
at all, elements of the population from the sample.
A sample is thus a subgroup or subset of the population. BY
studying the sample, the researcher should be able to draw
conclusions that are generalizable to the population of
interest.
Population, Element, S a m p l e ,
S a m p l i n g Unit, a n d S u bject
• S a m p l i n g Unit
The sampling unit is the element or set of
element that is available for selection in
some stage of the sampling process.
Examples of sampling units in a multistage
sample are city blocks, households, and
individuals within the households.
• Subject
A subject is a single member of the sample,
just as an element is a single member of the
population.
Sample Data and
Population Values
• W h en we sample, the sampling units (employees,
consumers, and the like) provide u s with responses.
• For instance, a consumer responding to a survey
question m a y give a response of “3”.
• W h en we examine the responses that we get for our
entire sample, we make use of statistic.
• The reason we sample, however, is that we are
interested in the characteristics of the population we
sample from.
• If we study the entire population and calculate the
m e a n or the standard deviation, then we refer to this
a s a statistic. Instead, we call it a parameter of the
population.
Sample Data and
Population Values
Sample Data and
Population Values
Representativeness of S a m p l e
• The need to choose the right sample for research
investigation cannot be overemphasized. We know that
rarely will the sample be an exact replica of the
population from which it is drawn.
• For instance, very few sample m e a n s (X) are likely to be
exactly equal to the population m e a n s (µ). Nor is the
standards deviation of the sample (S) likely to be the
s a m e a s the standard deviation of the population (σ).
• However, if we choose the sample in a scientific way, we
can be reasonably sure that the sample statistic is fairly
close to the population parameter.
• To put it differently, it is possible to choose the sample in
such a way that it is r e p r e s e n t a t i v e of the population.
There is always a slight probability, however, that sample
values might fall outside the populations parameters.
Sample Data and
Population Values
N o r m a l i t y of D i s t r i b u t i o n s
• Attributes or characteristics of the population are
generally normally distributed. For instance, when
attributes such a s height and weight are
considered, most of people will be clustered
around mean, leaving only a small number at the
extremes who are either very tall or very short,
very heavy or very light, and so on.
• If we are to estimate the population
characteristics from those represented in a sample
with reasonable accuracy, the sample has to be
chosen so that the distribution of the
characteristics of interest follows the sampe
pattern of normal distribution in the sample a s it
dose in the population.
Sample Data and
Population Values
• From the central limit theorem, we know that the
sampling distribution of the sample mean is normally
distributed.
• A s the s a m p l e size n increases, the m e a n s of the
random samples taken form practically any populations
approach a normal distribution with mean and standard
deviation.
• In sum, irrespective of whether or not the attributes of
the population are normally distributed, if we take a
s ufficiently larg e num ber of s am ples and choos e them
with care, we will have a sampling distribution of the
m ea n s that has normality. This is the reason why two
important issues in sampling are the sample size (n)
and the sampling design.
The S a m p l i n g P r o c e s s
• Sampling is the process of selecting a sufficient
number of the right elements from the population, so
that study of the sample and an understanding of its
properties or characteristics make it possible for u s to
generalize such properties or characteristics to the
population elements.
• The major steps in sampling include:
1. Define the population
2. Determine the sample frame
3. Determine the sample design
4. Determine the appropriate sample size
5. Execute the sampling process
The S a m p l i n g P r o c e s s
1 . D e f i n i n g t h e po pu l a t i o n
Sampling begins with precisely defining the
target population. The target population
must be defined in terms of elements,
geographical boundaries, and time.
2 . D e t e r m i n i n g t h e s a m p l e f ra m e
The sampling frame is a (physical)
representation of all the elements in the
population form which the sample is drawn.
The S a m p l i n g P r o c e s s
3. D e t e r m i n i n g t h e s a m p l i n g d e s i g n
There are two major types of sampling design:
probability and nonprobability sampling.
In probability s a m p l i n g the elements in the
population have s o m e known, nonzero chance
or probability of being selected a s sample
subjects.
In n o n p r o b a b i l i t y s a m p l i n g , the elements
do not have a known or predetermined chance
of being selected a s subjects.
The S a m p l i n g P r o c e s s
4 . D e t e r m i n i n g t h e s a m p l e size
The decision about how large the sample size should be
can be a very difficult one. We can summarize the
factors affecting decisions on sample size as:
a. The research objective.
b. The extent of precision desired (the confidence
interval).
c. The acceptable risk in predicting that level of
precision (confidence level).
d. The amount of variability on the population itself.
e. The cost and time constraints.
f. In s o m e cases, the size of the population itself.
5. Executing the sampling process
Probability S a m p l i n g
• When elements in the population have a
known, nonzero chance of being chosen
as subjects in the sample, we resort to a
probability sampling design. Probability
sampling can be either unrestricted
( s i m p l e ra n d o m s a m p l i n g ) or
restricted ( c o m p l e x probability
s a m p l i n g ) in nature.
• In the simple random sampling design ,
every element in the population has
known and equal chance of being
selected a s a subject.
Probability S a m p l i n g
• The complex probability plan consists of
five different sampling designs.
1. Systematic sampling
2. Stratified random sampling
3. Proportionate and disproportionate
stratified random sampling
4. Single-stage and multistage cluster
sampling
5. Double sampling
Probability S a m p l i n g
• S y s t e m a t i c s a m p l i n g – the systematic
sampling design involves drawing every nth
element in the population starting with a
randomly chosen element between 1 and n.
• Stratified ra n d o m s a m p l i n g – stratified
random sampling, as it name implies, involves
a process of stratification or segregation,
followed by random selection of subjects from
each stratum. The population is first divided
into mutually exclusive groups that are
relevant, appropriate, and meaningful in the
context of the study.
Probability S a m p l i n g
• Proportionate a nd disproportionate
stratified r a n d o m s a m p l i n g – is the type of
sampling when once the population has been
stratified in s o m e meaningful way, a sample of
members from each stratum can be drawn
using either a simple random sampling or a
systematic sampling procedure.
• C l u s t e r s a m p l i n g – in cluster sampling, the
target population is first divided into clusters.
Then, a random sample of clusters is drawn and
for each selected cluster either all the elements
or a sample of elements are included in the
sample. A specific type of cluster sampling is
are sampling.
Probability S a m p l i n g
• S i n g l e - s t a g e a n d m u l t i s t a g e cluster
s a m p l i n g – a cluster sampling that can
also be done in several stages.
• D o u b l e s a m p l i n g – a sampling design
where initially a sample is used in a
study to collect some preliminary
information of interest, and later a
subsample of this primary sample is used
to examine the matter in more detail.
N o n p ro b a b ility
Sampling
• In nonprobability sampling designs, the elements
in the population do not have any probabilities
attached to their being chosen a s sample subject.
• This means that the findings from the study of the
sample cannot be confidently generalized to the
population.
• A s start earlier, however, researchers may, at
times, be less concerned about generalizability
than obtaining s o m e preliminary information in a
quick and inexpensive way.
• Nonprobability sampling designs, which fit into the
broad categories of c on veni ence s a m p l i n g and
purposive sampling.
N o n p ro b a b ility
Sampling
Convenience S amp l i n g
• A s its name implies, convenience sampling
refers to the collection of information from
members of the population who are
conveniently available to provide it.
• Convenience sampling is most often used
during the exploratory phase of a research
project and is perhaps the best way to of
getting some basic information quickly and
efficiency.
N o n p ro b a b ility
Sampling
Purposive Sampling
• Instead of obtaining information from those
who are most readily or conveniently available,
it might sometimes become necessary to
obtain information from specific target groups.
• The sampling here is confined to specific types
of people who can provide the desire
information, either because they are the only
ones who have it, or they conform to s o m e
criteria set by the researcher.\
• Two major types of purposive sampling are
j u d g m e n t s a m p l i n g and q u o t a s a m p l i n g .
N o n p ro b a b ility
Sampling
P u r p o s i v e S a m p l i n g – J u dgm e nt S a m p l i n g
• Judgment sampling involves the choice of subject
who are most advantageously placed or in the
best position to provide the information required.
• Thus judgment sampling design is used when a
limited number or category of people have the
information that is sought. In such case, any type
of probability sampling across a cross-section of
the entire population.
• Though restricted in generalizability, m a y
sometimes be the best sampling choice,
especially when there is a limited population that
can supply the information needed.
N o n p ro b a b ility
Sampling
Purposive S ampling – Quota S ampling
• Quota sampling, a second type of purposive sampling,
ensure that certain groups are adequately represented
in the study through the assignment of a quota.
• Generally, the quota fixed for each subgroup is based on
the total numbers of each group in the population.
• However, since this is the a nonprobability sampling
plan, the results are not generalizable to the population.
• Quota sampling is often used on considerations of cost
and time and the need to adequately represent minority
elements in the population.
• Although the generalizability of all nonprobability
sampling designs is very restricted, they have certain
advantages and are sometimes the only viable
alternative for the researcher.
I s s u e s of Pr e c i si o n a n d C o n f i de n c e
In Determining S a m p l e Size
• P r e c i s io n refers to how close our estimate is to the true
population characteristic. Usually, we estimate the population
parameter or fall within a range, based on the sample estimate.
• Precision is a function of the range of variability in the sampling
distribution of the sample mean.
• That is, if we take a number of different samples from a
population, and take the m e a n of each of these, we will usually
find that they are all different, are normally distributed, and
have a dispersion associated with them.
• The smaller this dispersion or variability, the greater the
probability that the sample m e a n will be closer to the
population mean.
• In sum, the closer we want our sample results to reflect the
population characteristics, the greater the precision we should
aim at. The greater the precision require, the larger the sample
size needed, especially when the variability in the population
itself is large.
I s s u e s of Pr e c i si o n a n d C o n f i de n c e
In Determining S a m p l e Size
• Confidence – where precision denotes how
close we estimate the population
parameter base on the sample statistic,
confidence denotes how certain we are that
our estimates will really hold true for the
population.
• Confidence reflects the level of certainty
with which we can state that our estimates
of the population parameters, based on our
sample statistics, will hold true.
I s s u e s of Precision a n d
Confidence I n
Determining Sample Size
T h e S a m ple size, n, is a fucntion of:
1. The variability in the population,
2. Precision or accuracy needed,
3. Confidence level desired, and
4. Type of sampling plan used – for example,
simple random sampling versus stratified
random sampling.
Sample Data and
H y p o t h e s i s Testing
• Sample data can also be used to test
hypotheses about population values
rather than simply to estimate population
values.
• The procedure for this testing
incorporates the s a m e information as in
interval estimation, but the goals behind
the two methods are somewhat different.
The S a m p l e S ize
• Both sampling design and the sample size are
important to establish the representativeness of the
sample for generalizability.
• If the appropriate sampling design is not used, a
large sample size will not, in itself, allow the findings
to be generalized to the populations.
• Likewise, unless the sample size is adequate for the
desired level of precisions and confidence, no
sampling design, however sophisticated, will be
useful to the researcher in meeting the objectives of
the study.
• Hence, sampling decision decisions should consider
both the sampling design and the sample size.
The S a m p l e S ize
The S a m p l e S ize
R u l e s of t h u m b
Roscoe (1975) propose the following rules of thumb for
determining sample size:
1. Sample size larger than 3 0 and less than 5 0 0 are
appropriate for most research.
2. Where sample are to be broken into subsample, a minimum
sample size of 3 0 for each category is necessary.
3. In multivariate research (including multiple regression
analyses), the sample size should be several times
(preferably ten times or more) as large as the number of
variables in the study.
4. For simple experimental research with tight experimental
controls (matched pairs, etc.), successful research is
possible with samples as small as 1 0 to 2 0 size.
S a m p l i n g a s Related to
Qualitative S t u d i e s
• Sampling for qualitative research is a s important a s
sampling for quantitative research.
• Qualitative sampling begins with precisely defining the
target population.
• A s sampling technique, qualitative research generally
use nonprobability sampling a s it does not aim to draw
statistical inference.
• Purposive sampling is one technique that is often
employed in qualitative investigation: subject are
selected on the basis of expertise in the subject that is
being investigated.
• It is important that the subjects are chosen in such a
way that they reflect the diversity of the population.
Managerial Implications
• Awareness of sampling designs and sample size
helps managers to understand why a particular
method of sampling is used by researchers.
• It also facilitates understanding of the cost
implications of different designs, and the trade-off
between precision and confidence vis-à-vis the
costs.
• This enables managers to understands the risk they
take in implementing changes based on the results
of the research study.
• While reading research reports or journal articles,
this knowledge also helps managers to a s s e s s the
generalizability of the findings and analyze the
implications of trying out the recommendations
made therein in their own system.
Questions and Answers