Practice Questions

Chapter No.: 3

Chapter Title: The Nature of Statistics

Class: BSc

Subject: Statistics-1

Course Code: 04a

Compiled By: Sir Waseem Mustafa

Cell No.: 0301 5 111 888

E-Mail: waseem.mustafa.ibd@gmail.com
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Important Points:
3.1) What is Statistics?
Statistics is a mathematical science concerned with analysing and interpreting data.

3.2) Population and Sample:

A population is the complete set of all items that interest an investigator. Population
size, N, can be very large or even infinite. A sample is an observed subset of
population values with sampl size given by n.
Examples of popualtion include:
 All registered voters in the United States.
 All students in your university.
 All families living in West Palm Beach, Florida.
 All stocks traded on the New York Stock Exchange.
 All medical insurance claims received by a company in a given year.
 All accounts receivable for a corporation.

3.3) Bias:
Besides the common-sense meaning of bias, in statistics there is a more technical
meaning. Intuitively, bias is something we should aim to minimise (if not eliminate
entirely). Systematic bias refers to an estimation methodology which results in
systematic errors, i.e. consistently over- or under-estimating some population
parameter (discussed shortly). It would be difficult to justify a methodology that was
biased, hence sample survey methodology places great emphasis on unbiased surveys
and unbiased estimators.

3.1) Parameters:
We can define a parameter (or set of parameters) as that measure (or the set of
measures) which completely describe a function.
For example, parameters of a circle are radius and center and similarly parameters of
a straight line are gradient m and y-intercept c.

3.2) Census:
A census is the procedure of systematically acquiring and recording information about
the members of a given population. It is regularly occuring and official account of a
particular population. The term is used mostly in connection with national population
and housing censuses.
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3.3) Random Sampling:

Random Sampling is a sampling technique where we select a group of subjects (a
sample) for study from a large group (a population). Each individual is chosen entirely
by chance and each member of the population has a known, but possibly non-equal
chance of being included in the sample. By using random sampling, the likelihood of
bias is reduced.

3.4) Simple Random Sampling:

Simple Random Sampling is a procedure used to select a sample of n objects from a
population in such a way that each member of the population is chosen strictly by
chance, each member of the population is equally likely to be chosen, and every
possible sample of a given size , n, has the same chance of selection.

3.5) Stratified Random Sampling:

Suppose that a population of N individuals can be subdivided into K mutually
exclusive and collectively exahustive groups, or strata.
Stratified Random Sampling is the selection of independent simple random samples
from each stratum of the population. If the K strata in the population contain 𝑵𝟏 , 𝑵𝟐 ,
…, 𝑵𝑲 members, then
𝑵𝟏 + 𝑵𝟐 + ⋯ + 𝑵𝑲 = 𝑵

3.6) Cluster Sampling:

A population is subdivided into M clusters, a simple random sample of m of these
clusters is selected, and information is obtained from every member of the sample
clusters. Let 𝒏𝟏 , 𝒏𝟐 , …, 𝒏𝒎 denote the numbers of population members in the m
sampled clusters. Denote the means of these clusters by 𝒙 ̅𝟏 , 𝒙
̅𝟐 , … , 𝒙
̅𝒎 and the
proportions of cluster members possessing an attribute of interest by
𝑷𝟏 , 𝑷𝟐 , …, 𝑷𝒎 . The objective is to estimate the overall population and proportion.

3.7) Quota Sampling:

Quota Sampling is a method of sampling widley used in opinion polling and market
research. Interviewers are each given a quota of subjects of specified type to attempt to
recruit for example, might be told to go out and select 20 adult men and 20 adult
women, 10 teenage girls and 10 teenage boys so that they could interview them about
their television viewing.
It suffers from a number of methodological flaws, the most basic of which is that the
sample is not a random sample and therefore the sampling distributions of any statistics
are unknown.
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3.8) Sampling Frame:

Sampling Frame is a list of all population members. For example, if you want to
investigate UK secondary schools, the sampling frame would be a list of all the
secondary schools in the UK.

3.9) Parameter and Statistic:

A prameter is a specific characterstic of a population. A statistic is a specific

characterstic of a sample.
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Exercise:
Q 1) Explain the difference between
a) A simple random sample and a random sample.
b) Stratified random sampling and cluster sampling.

Q 2) What parameters could you find for a circle?

Q 3) Give an example of a parameter for each of the following populations:

a) Incomes of all families living in West Palm Beach, Florida
b) Annual returns of all stocks traded on the New York Stock Exchange
c) Costs of all medical insurance claims received by a company in a given year
d) Values of all accounts receivable for a corporation

Q 4) Your college surveyed its students to determine average time spent surfing the internet.
From a random sample of 174 students the average time was computed to be 6.1 hours.
a) What is the population?
b) What is the sample?
c) What is the statistic?
d) Is the value 6.1 hours a parameter or a statistic?

Q 5) One airline claims that less than 1% of its scheduled flights out of Orlando International
Airport depart late. From a random sample of 200 flights, 1.5% were found to depart later
than the scheduled time.
a) What is the population?
b) What is the sample?
c) What is the statistic?
d) Is 1.5% a parameter or a statistic?
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Questions from Past Papers:

Q 6) (Paper-2003, Zone-A, Section-A, Question-1 (c))

Define each of the following briefly

i) A random sample
ii) A quota sample

Q 7) (Paper-2003, Zone-B, Section-A, Question-1 (c))

Define each of the following briefly

i) A simple random sample

ii) A quota sample
iii) A stratified random sample

Q 8) (Paper-2004, Zone-A, Section-A, Question-1 (b), (i))

State whether the following statements are true or false and give a brief explanation (Note
that no marks given for a simple true/false answer)

A quota sample is more accurate than a random sample

Q 9) (Paper-2004, Zone-B, Section-A, Question-1 (b), (i))

State whether the following statements are true or false and give a brief explanation (Note
that no marks given for a simple true/false answer)

A random sample is less accurate than a quota sample

Q 10) (Paper-2005, Zone-A, Section-A, Question-1 (b))

State whether the following statements are true or false and give a brief explanation (Note
that no marks given for a simple true/false answer)

iv) You need a population list in order to take a random sample.

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Q 11) (Paper-2005, Zone-A, Section-A, Question-1 (g))

Define each of the following briefly

i) A quota sample

Q 12) (Paper-2005, Zone-A, Section-B, Question-2 (b))

i) Define each of the following briefly

 A simple random sample
 A quota sample

Q 13) (Paper-2005, Zone-B, Section-A, Question-1 (b))

State whether the following statements are true or false and give a brief explanation (Note
that no marks given for a simple true/false answer)

iv) You need a population list in order to take a random sample.

Q 14) (Paper-2005, Zone-B, Section-A, Question-1 (g))

Define each of the following briefly

ii) A quota sample

Q 15) (Paper-2005, Zone-B, Section-B, Question-2 (b))

i) Define each of the following briefly

 A simple random sample
 A stratified sample

Q 16) (Paper-2006, Zone-A, Section-A, Question-1)

a) Define each of the following briefly

i) quota sampling
ii) cluster sampling
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Q 17) (Paper-2006, Zone-B, Section-A, Question-1)

b) Define each of the following briefly

i) quota sampling
ii) stratified sampling

Q 18) (Paper-2009, Zone-A, Section-A, Question-1 (e))

State whether the following statement is possible or not possible and give a brief explanation
(Note that no marks given for a simple possible/ not possible answer)

i) Random sampling causes high variability in estimates.

Q 19) (Paper-2010, Zone-A & B Section-A, Question-1 (b))

Explain the difference between sampling error and sampling bias.

Q 20) (Paper-2013, Zone-A & B Section-A, Question-2 (b))

i) Define each of the following:

 Simple random sampling
 Stratified random sampling.
ii) Why might a researcher prefer to take a stratified random sample rather than a
simple random sample? Give two reasons.
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Answers:
Q 1)
a) In Random Sampling each individual is chosen entirely by chance and each member of
the population has a known, but possibly non-equal chance of being included in the
sample, On the other hand, in Simple Random Sampling each individual is chosen
entirely by chance and each member of the population has a known, but strictly equal
chance of being included in the sample.
b) The main difference between cluster sampling and stratified sampling is that in cluster
sampling the cluster is treated as the sampling unit so analysis is done on a population
of clusters. In stratified sampling, the analysis is done on elements within strata.

Q 2) To properly define a circle we need to specify its location and size. Hence two suitable
parameters would be the co-ordinates of the circle’s centre point (defines its location) and its
radius (defines its size).

Q 3)
a) A population parameter could be the true overall population mean income of all
families living in West Palm Beach, Florida
b) A population parameter could be the true overall population standard deviation of all
stocks traded on the New York Stock Exchange.
c) A population parameter could be the true population mean costs of all medical
insurance claims received by a company in a given year.
d) A population parameter would be the true population mean values of all accounts
receivable for a corporation.
Q 4)
a) The population consists of all students at the college
b) The sample consists of the 174 students that were randomly selected
c) The statistic is the 6.1 hours that was calculated from the sample
d) 6.1 hours is a sample statistic

Q 5)
a) The population consists of all of the airline’s scheduled flights at Orlando
International Airport.
b) The sample consists of the randomly selected 200 flights.
c) The statistic is the 1.5% that were found to depart later than the scheduled time for the
200 randomly selected flights.
d) 1.5% is a sample statistic.
Q 6) See 3.3 & 3.7 of Important Points of these Practice Questions

Q 7) See 3.4, 3.5 & 3.7 of Important Points of these Practice Questions
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Q 8) False, because in random sample, each individual has equal probability while in Quota
sampling each individual has not equal probability.

Q 9) False, because in random sample, each individual has equal probability while in Quota
sampling each individual has not equal probability.

Q 10) True, because in random sample we consider complete population.

Q 11) See 3.7 of Important Points of these Practice Questions

Q 12) See 3.4, & 3.7 of Important Points of these Practice Questions

Q 13) True, because in random sample we consider complete population.

Q 14) See 3.7 of Important Points of these Practice Questions

Q 15) See 3.4, & 3.5 of Important Points of these Practice Questions

Q 16) See 3.6, & 3.7 of Important Points of these Practice Questions

Q 17) See 3.5, & 3.7 of Important Points of these Practice Questions

Q 18) There is no reason why random sampling should have high or low variability in its
estimates. But, in general, the lower the sample size n, the higher the variability and so the
statement is `possible'.

Q 19) Sampling error arises as part of the process of random sampling and can be measured
and used to give the accuracy of estimates. Sampling bias arises from a systematic error and
cannot be easily measured.

Q 20) (i) Simple random sampling:

 Every sample has equal probability.
 With replacement.
Stratified random sampling:
 Population divided into strata (or groups).
 Random sample from each group.
(ii) There are generally two main reasons why one would prefer stratified to simple
random sampling.
 Potentially more precision of parameter estimates.
 Obtain information about subgroups.

The End, Good Luck