Quantitative 

Methods
MM ZG515 / QM ZG515
L7.2: Sampling and 
Sampling Distributions
BITS Pilani
Pilani | Dubai | Goa | Hyderabad Srinivas Kota
 Scenarios
Scenario 1
The VP for Human Resources of a large BPO wants to estimate the attrition rate. She
randomly selects 30 employees and has a one‐on‐one discussion with each of them to
understand their satisfaction level. Through these discussions she will identify those who
are likely to resign. She will use this proportion as an estimate for the attrition rate.

Scenario 2
The production line in a rice mill is designed to fill bags with rice with a mean weight of
10 Kg. The Quality Assurance Officer selects a random sample of 6 bags every 2 hours.
Each bag is weighed and the average weight is computed. If the sample mean leads him
to conclude that the process is under‐filling or over‐filling, the production process would
be shut down for re‐calibration.

Scenario 3
The call centre handles thousands of calls every day. The Quality Assurance team records
every 100th call. They review these recordings, identify calls that fail to to meet
predefined standards and identify the root causes for these failures. This analysis is then
used to improve agent training, initiate coaching programs or correct internal processes.
This may also impact workforce scheduling, recruitment policies, and other processes.

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Sampling
Population
• consists of all items of interest in a statistical problem
• Population Parameter is unknown
Sample
• a subset of the population
• Sample Statistic is calculated from sample and used to make 
inferences about the population
Bias
• the tendency of a sample statistic to systematically over‐ or 
underestimate a population parameter
Selection bias Nonresponse bias
exclusion of certain groups from  difference in preferences 
consideration for the sample between respondents and non‐
respondents to a survey or a poll

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Sampling Methods
Simple random sample
• a sample of n observations which has the same probability of being
selected from the population as any other sample of n observations.
• most statistical methods presume simple random samples
• some situations other sampling methods have an advantage over simple random
samples.

Systematic Random Sampling

• items or individuals of the population are arranged in some order.
A
random starting point is selected and then every kth member of the
population is selected for the sample
• A population consists of 845 employees of Nitra Industries. A sample of 52
employees is to be selected from that population. First, k is calculated as the
population size divided by the sample size. For Nitra Industries, we would select
every 16th (845/52) employee list. If k is not a whole number, then round down.
Random sampling is used in the selection of the first name. Then, select every
16th name on the list thereafter

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Sampling Methods
Stratified Random Sampling elements from each group
• Divide the population into mutually exclusive and collectively exhaustive 
groups, called strata
• Randomly select observations from each stratum, which are proportional to 
the stratum’s size
• Advantages:
• Guarantees that each population subdivision is represented in the sample
• Parameter estimates have greater precision than those estimated from simple random 
sampling

Cluster Sampling elements from the selected groups

• Divide population into mutually exclusive and collectively exhaustive groups, 
called clusters. Randomly select clusters
• Sample every observation in those randomly selected clusters
• Advantages and disadvantages:
• Less expensive than other sampling methods
• Less precision to simple random sampling or stratified sampling
• Useful when clusters occur naturally in the population

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The sampling Distribution
of the means
Population is described by parameters
• parameter is a constant, whose value may be unknown
• only one population

Sample is described by statistic
• statistic is a random variable whose value depends on the chosen 
random sample
• statistic is used to make inferences about the population 
parameter
• can draw multiple random samples of size n

• In nonprobability sample inclusion in the sample is based on the 
judgment of the person selecting the sample

• The sampling error is the  difference between a sample statistic and its 
corresponding population parameter
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The sampling Distribution
of the means
Estimator
• statistic that is used to estimate a population parameter
• For example,  , the mean of the sample, is an estimator of  , 
the mean of the population
Estimate
• particular value of the estimator
• the mean of the sample  is an estimate of  , the mean of the 
population
Sampling Distribution of the Mean
• Each random sample of size n drawn from the population 
provides an estimate of  — with the sample mean  .
• The sampling distribution of the sample mean is a 
probability distribution consisting of all possible sample 
means of a given sample size selected from a population. 

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The sampling Distribution
of the means
Ex: One simple random sample drawn from the 
population—a single distribution of values of X.
Random Variable
Mean 
X1 X2 X3 X4 of X
6 10 8 4 5.57
5 10 4 3 5.71 A distribution of means from 
1 8 4 3 6.36 each random draw from the 
4 1 6 2 4.07
population.
6 6 8 4
7 7 8 6
1 5 10 5
5 5 9 1
4 6 4 2
Means from each distribution 
7 4 9 5
8 5 8 6 (random draw) from the 
9 2 7 7 population.
9 1 2 3
6 10 2 6
Means 5.57 5.71 6.36 4.07 5.43

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The sampling Distribution
of the means
The Expected Value and Standard Deviation of the Sample Mean
• The expected value of X,
• The expected value of the sample mean, 

The Expected Value and Standard Deviation of the Sample Mean
• Variance of X ଶ

• Standard Deviation of X and 
ଶ

Where n is the sample size. 
ఙ
௡
Also known as the Standard 
Error of the Mean.

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