Sampling and Estlmatlon c,HAPTER

Theory
SAMPLING THEORY
6.1 SOME IMPORTANT TERMS
ASSOCIATED WITH SAMPLING
6.1.1 Population and Sample
population or Universe. Population
in statistics means the whole of the information which
comes under the purview of statistical
investigation It is the totality of all the observations of a
statistical experiment or enquiry. In other
words, an aggregate of objects; animate or inanimate
under study is the population. It is also known as the universe. For example, the population of the
heights of students in a school, or the population
of the sum of points obtained in throwingthree
dice.
Finite or Infinite Population. A population
may_befiniteor infinite according as the number
ofouservations or items in it are finite or infinite. The populationof weights of studentsof class
Xll in a government school is an example of a unite population. The population of pressure at
different points in the atmosphere is an example of an infinite population.
Sample. A part of the population selectedfor study is called a sample In other words,the
selecrion of a group of individuals or itemsfrom a population in such way that this group
represents the population, is called a sample. For example,a housewifetests a small quantity of
rice to see that it has been cooked or not. This small quantity of rice is a sample and represents the
entire quantity of rice cooked. A sample is a selected portion of the population. A sample drawn
from a population provides a valuable information about its parent population. It gives a fairly
accurate result and a reliable picture of the total observationsunder investigation. It is always used
to measure and estimate the corresponding characteristicsof its parent population. When the
sample drawn is perfectly representative, it is identical with its parent population almost in every
respect except that it is smaller than the population.
Size of a Sample. The number of individuals or items included in a finite sample is called
the size of the sample.

6.2 PARAMETER AND STATISTIC

There are various statistical measures in statistics such as mean, median, mode, standard
measures can be computed both
deviation, coefficient of variation, variance etc. These statistical
frompopulation (or universe) data and sample data.
population data is known as parameter.
Parameter: Any statistical measure computedfrom
known as statistic.
Statistic: Any statistical measure computedfrom sample data is
which relates to the population and is based on
Thus a parameter is a statistical measure
statistical measure which relates to the sample and is
POPulationdata, whereas a statistic is a
mean, population median, population variance,
based on sample data. Thus a population
all parameters. Statistic computed from a Sample such
POPUlationcoefficient of variation etc., are
which are drawn from the parent population plays an
as sample mean, sample variance etc., hypothesis
importantrole in (i) theory of Estimation and, (ii) Testing of
6.1
 Test: Quantitative A itude Statit .
6.2 Common Proficien

parameter (in the case of population data) and Statistic (In

The usual notauon used for
case of sample data) are given below values, while a statistic is a functim
function of population
Formally. a parameter is any are unknown and these are
of various parameters
sanvle values Very often the values
For example, sample mean i (or sample standard deviation
by the correspondingstatistic.
standard deviation).
used as an estimator of population mean (or population
Notations
Population Sample
Statistical Measure
x
Mean
Standard deviation
Proportion
n
Size

6.3 SAMPLING
It is the procedure or process of selecting a sample from a population* sarnpling can also
be defined as the process of drawing a sample from a population and of compiling a suit,ble
statistic from such a sample in order to estimate the parameter of the parent population and totest
the significance of the statistic computed from such sample.

6.4 SAMPLING THEORY

The study of relationship existing between a population and the samples drawn from the
population is called Sampling. Sampling theory is based on sampling. 't deals with statistical
inferences drawn from sampling results. Statistical inference made on the basis of samplingresults
are of the following three types:
(O Statistical Estimation. It helps in estimating an unknown population parameter (suchas
population mean, median, mode, standard deviation, kurtosis etc. ) on the basis of suitable statistic
(such as sample mean, mode, median, variance etc. ) computedfrom the sample drawnfromsuch
parent population.
(ii) Tests of Significance. Samplingtheory helps in testing of significance aboutthe
population characteristics on the basis of suitable statistic computedfrom a sample drawnfrom
such parent population. In other words, it helps in determining whether observed differences
between two samples are actually due to chance or whether they are really significant. Such
questions help us in deciding whether one production is better than the other. The test Of
significance plays an Importantrole in the decision theory.
(iii) Statistical Inference. Statistical inferencemeans drawing conclusions aboutsome
matters on the basis of certain statistical results. These statistical results are obtained by drawing
sarnples from the population and then by computing suitable statistic from these samples so as to
make statistical inferences. These statistical inferences enable us to draw statistical
about some measures of a population on the basis of such statistic.

6.5 TYPES OF SAMPLING

A sample can be selected from a population in various ways. Different situations callfor
different methods of sampling. There are two methods of Sampling:
1. Random Sampling or Probability Sampling Method
2. Non-Random Sampling or Non-Probability Sampling
Method.
 am lin and Estimation Theo 6.3
.5.1 Random Sampling or Probability Sampling
Random Sampling. Random or Probability sampling is the
scientific technique of drawing
amplesfrom the population according to some laws of
chance in which each unit in the universe
r population has some definite pre-assigned
probability of being selected in the sample. It is of
types.
(a) Simple Random Sampling (SRS).
It is the method of selection of a
sample in such a way that each and every member of
population or universe has am equal chance
orprobability of being included in the
sample. Random sampling can be carried
odt in two ways.
(i) Lottery Method. It is the
simplest, most common and important method of obtaining
a random sample. Under this method,
all the members of the population or universe
are serially numbered on small slips of
a paper. They are put in a drum and thoroughly
mixed by vibrating the drum. After mixing, the
numbered slips are drawn out of the
drum one by one according to the size
of the sample. The number of slips so drawn
constitutea random sample.
(ii) Random Number Method. In this
method, sampling is conductedon the basis of
random numbers which are available from the random number tables. The various
random number tables available are:
(a) Trippet's Random Number Series;
(b) Fisher's and Yales Random Number Series;
(c) Kendall and Badington Random Number Series;
(d) Rand Corporation Random Number Series;
One major dis-advantage of random sampling is that all the members of the population must
be known and be serially numbered. It will entail a lot of difficulties in case the population is of
large size and will be impossible in case the population is of infinite size.
(b) Restricted Random Sampling.
It is of three types
(i) Stratified Sampling
(ii) Systematic Sampling
(iii) Multi-stage Sampling
Stratified Sampling. In stratified random sampling, the population is db'ided into
strata (groups) before the sample is drawn. Strata are so designed that they do not overlap.
Elementary units from each stratum is drawn at random and the units so drawn constitute a sample.
Stratified sampling is suitable in those cases where the population is hetrogeneous but there is a
homogeneitywithin each of the groups or strata.
Advantages
(i) It is a representativesample of the hetrogeneouspopulation.
(ii) It lessens the possibility of bias of one sidedness.
Disadvantages
(i) It may be difficult to divide thepopulation into hetrogeneousgroups.
(ii) There may be over-lapping of different strata of the population which will provide an
unrepresentativesample.
Systematic Sampling. In this method every elementary unit of the population is arranged in
order and the sample units are distributed at equal and regular intervals. In other words, a sample
Ofsuitable size is obtained (from the orderly arranged population)by taking every unit say tenth
unit of the population. One of the first units in this ordered arrangementis chosen at random and
6.4 Common Proficienc Test: Quantitative A titude
Statistics
the sample is computed by selecting every tenth unit (say) from the rest of the lot.
If the first
selected is 4. then the other units constituting the sample will be 14, 24, 34, 44,
and so on. unit
Advantages. It is most suitable where the population units are serially
numbered or seriall
arranged.
Disadvantages. It may not provide a desirable result due to large variation
in the items
Multi-stage Sampling. In this sampling method, sample of elementary units
is selectedin
stages. Firstly a sample of cluster is selected and from a}nong them a sample
of elementaryunits
is selected. It is suitable in those cases where population size is very big
and it contains a large

6.5.2 Non-Random Sampling or Non-ProbabilitySampling Method

A sample of elementary units that is being selected on the basis of personal
judgementis
called a non-probability sampling. It is of five types.
(i) Purposive Sampling; (ii) Cluster Sampling;
(iii) Quota Sampling; (iv) Convenience Sampling;
(v) Sequential Sampling.
Purposive Sampling. Purposive sampling is the method of sampling by which a sample
is
drawn from a population based entirely on the personal judgement of the investigator.
It is also
known as Judgement Sampling or Deliberate Sampling. A randomness finds no place
in it andso
the sample drawn under this method cannot be subJected to mathematical concepts used in
computing sampling error.
Cluster Sampling. Cluster Sampling involvesarranging elementary items in a population
into hetrogeneous subgroups that are representativeof the overall population. One suchgroup
constitutes a sample for study.
Quota Sampling. In quota sampling method, quotas are fixed according to the basic
parameters of the population determined earlier and eachfield investigator is assigned withquotas
of number of elementary units to be interviewed
Convenience Sampling. In conveniencesampling, a sample is obtained by selecting
convenient population elementsfrom the population.
Sequential Sampling. In sequential sampling a number of sample lots are drawn one after
another from the population depending on the results of the earlier samples drawn front the same
population. Sequential sampling is very useful in Statistical Quality Control. If the first sampleis
acceptable, then no further sample is drawn. On the other hand if the initial lot is completely
unacceptable, it is rejected straightway. But if the initial lot is of doubtful and marginal character
falling in the area lying between the acceptance and rejection limits, a second sample is drawnand
if need be a third sample of bigger size may be drawn in order to arrive at a decision on the fmal
acceptance or rejection of the lot. Such sampling can be based on any of the random or non-random
method of selection.

6.6 ADVANTAGES OF RANDOM(OR PROBABILITY) SAMPLING

l. Random sampling is objective and unbiased. As a result, it is defensiblebefore the
superiors or even before the court of law.
2. The size of sample depends on demonstrable statistical method and therefore, it hasa
Justification for the expenditure involved.
3. Statistical measures, i.e.. parameters based on the population can be estimated and
evaluated by sample statistic in terms of certain degree of precision required
 Estimation Theo
Sam lin and 6.5
4. It provides a more accurate method
of drawing conclusions about the characteristics of
the population as parameters.
5. It is used to draw the statistical inferences.
6. The samples may be combined and
evaluated, even though accomplished by different
individuals.
7. The results obtained can be
assessed in terms of probability, and the sample is accepted
or rejected on a consideration of
the extent to which it can be considered representative.
6.7 ERRORS IN SAMPLE SURVEY
A sample is a part of the whole population.
A sample drawn from the population depends on
chanceand as such all the characteristics of the population may not be present in the sample drawn
fromthe same population. Any statistical measure say, mean of the sample, may not be equal
to the corresponding statistical measure (mean) of the population from which the sample has
been drawn. Thus there can be discrepanciesin the statistical measure of population, i.e.,
parameter and the statistical measures of sample drawn from the same population, i.e., statistic.
These discrepancies are known as Errors in Sampling. Errors in sampling are of two types.
(O Sampling Errors
(it) Non-sampling Errors or Bias.
6.7.1.Sampling Errors
Sampling Errors is inherent in the method of sampling. Sampling depends on chance and due
to the existence of chance in sampling, the sampling errors occur. Errors in sampling arise
primarily due to the following reasons:
1. Faulty selection of the sample. This may be due to selection of defective sampling
techniques which may introduce the element of bias, e.g., purposive or judgement
sampling, in which investigator deliberately selects a non-representativesample.
2. Substitution. Sometimes an investigatorwhile collectingthe information from a particular
sampling unit, included in the random selection substitutes a convenient member of the
population and this may lead to some bias as the characteristic possessed by the substituted
unit may be different from those possessed by the original unit included in sampling.
3. Faulty demarcation of sampling units.
4. Variability of the population. Samplingerror may also depend on the variability or
hetrogeneity of the population from which the samples are drawn.
6.7.2. Non-Sampling Errors or Bias
Non-sampling errors or Bias automatically creep in due to human factors which always
varies from one investigator to another. Bias may arise in the following different ways:
(i) due to negligence and carelessness on
the part of investigator;
(ii) due to faulty planning of sampling;
(iii) due to the faulty selection of sample units;
(iv) due to incomplete investigation and sample survey;
(v) due to framing of a wrong questionnaire;
(VI) due to negligence and non-response on the part of the respondents;
(viz) due to substitution of a selected unit by another;
(viii) due to error in compilation;
(ix) due to applying wrong statistical measure.
5.6 Common Proficiency Test: Quantitative Aptitude (Statistics)

6.8 SAMPLING DISTRIBUTION OF A STATISTIC

Sampling distribution of a statistic is the frequency distribution which is formed with
various values of a statistic computedfrom different samples of the same size drawn from the
same population. We can draw a large number of samples of same size from a population of fixed
Size, each sample containing different population members. Any statistic (statistical measureof
sample) like mean, median, variance, standard deviation etc. may be computed for each of these
samples. As a result a series of various values of that statistic may be obtained. These various
values can be arranged into a frequency distribution table, which is known as the sampling
distribution of the statistic.
Sampling may be done with replacement or without replacement. Sampling with replacement
means that the same unit of the population may be included in each sample more than once.
Sampling without replacement means that the same unit of population may not be includedin
each sample more than once. In the case of sampling with replacement, the total number of
possible samples each of size n d. awn out of population of size N is N".But if the samplingis
without replacement the total number of possible samples will be C (N, n) = m (say): For each of
these samples a value of statistic, say sample mean , is computed. As the samples are formed with
different sample units so the value of each of the sample means will be different. The sample mean
can be regarded as a random variable and each sample mean then constitute as the observed
value of this new random variableE.Let these values be: These mean
values Xl, x2, x3, E can be used to form a frequency distribution. Then this frequency
distribution of the statistic is known as the Sampling distribution of Sample mean. Similarly,
the sampling distribution of standard deviation or coefficient of variation or variance may be
constructed with the various values of standard deviation or coefficient of variation or variance
respectively.
Lett t t be the m values of a statistic for m possible samples. Then the statistic t can
be regarded as a random variable which can take any one of the values t t t t . This set of t
values constitutes the sampling distribution of the statistic.
We can compute the mean, variance and other statistical measures of the sarnpling distribution
of the statistic t. For example,

Mean:

Variance: Var(t) = •
If the population size is infinitely large or sampling is done with replacement, then the total
nurnber of possible samples of the same size which may be drawn from the population cannot be
determined. In such a case, a large number of repeated random samples from the population Of
fixed size can be drawn and the values of statisticfor these samples may be computed. These
values of the statistic can be used to form a frequency distribution. This frequency distribution
of the statistic is known as the sampling distribution of the statistic. The main characteristic Of
the Sampling distribution of a statistic is that it approaches normal distribution even when the
population distribution is not normal provided the sample size Is sufficiently large (greater than
30). Another important feature of the sampling distribution of statistic is that the mean and the
standard deviation of the sampling distribution of sample mean bear a definite relation to the
corresponding parameters, i.e., mean and standard deviation of parent populauon. These
charactensucs of the sampling distribution help us:
 Estimation Theo
Sam Iin and
6.7
(i) To estimate the unknown
population parameter from the known statistic.
(ii) To set the confidence
limits of the parameter
expected to lie. within which the parameter values are
(iii) To test a hypothesis and to
draw a statistical inference from it.
6.9 SAMPLING DISTRIBUTION OF SAMPLE MEAN
1. If X1,
Theorem X3,.. . are n random samples
drawn from a finite population of size
N with mean and variance 02, and R .is
the mean of samples, then.

(a) Var (
N -n 02
) if the-samplingis without replacement
n
2
(b) var(R) if the sampling with replacement or the population
is infinite, i.e., or if N -9 00
6.10 STANDARD ERROR OF A STATISTIC
The statistical measure of standard deviation may be computedboth from the observations
of aæ population and also from the observationsof a sample. Also, we know that the standard
deviation is a measure of the average amount of the variabilityof all the observationsof variable
from their mean. When the average amount ofthe variability of the observationsof a population
is computed, it is called the standard deviation. But when the average amount of the variability
of the observations of a sampling distribution of Su statistic is computed,it is known as Standard
Error.• Thus the standard deviation computed from the observations of a sampling
distribution of a statistic is called the standard error of the statistic%In other words,the
standard deviation used to measure the variability of the values of a statistiCJromsample to sample
is called the standard error of the statistic. Thus,the standard deviation and standard error have
thesame meaning and same connection but are used in differentcases and differentcircumstances.
Both of them are used to measure the variability of observations.
Standard error is used to measure the variability of the values of a statistic computed
from the samples of the same size drawn from the population, whereas standard deviation is
used to measure the variability of the observationsof the populationitself.
fie following two standard errors are frequently used in statistics.
1. Standard Error of SampleMean. It is the standarddeviationof the sampling
distribution of sample means. It is denoted by and is given by where is the
standard deviation of population and n is the sample size.
computed from the proportions of all possible samples
2. Standard Error of Proportion. It is given by
denoted by s , and is
Ofthe same size drawn from a population. It is
, if P is known,
n
where P = population proportion, n = sample size.
of the sampling distribution of a statistic 't' is
In other words, the standard deviation by S.E. (t)
known as standard Error of t and is denoted
— •
S.E. (t) =
where n = size of the sample.
6.8 Common Proficiency Test: Quantitative Aptitude Statisti

The standard errors of the sampling distributions of some of the well-knownstatistic,where

n is the sample size. o is tshe population standard deviation, P is the population proportionand
Q = I—P'. n, and n, represent the sizes of two samples respectively. is given below,
REMARKS :
t. The standard deviation of a statistic is termed as standard error. The standard error

of S' to be written as S.E. (X ) and is equal to ' when sampling is with replacement.

and it is equal to when sampling is without replacement.

IV-I'
2. S. E. (A' ) is inverselyproportionalto the sample size. Thus larger the samplesize,
smaller is S.E. ( X ) and consequentlymore efficient is X as an estimator of g.

3. The term is termed as finite population correction (fpc). We note that fpc
tends to become closer and closer to unity as population size becomes larger and larger.
4. As a general rule, fpc may be taken to be equal to unity when sample size is less than
5% of population size, i.e., n < 0. 05N.

6.11 SAMPLING DISTRIBUTION OF PROPORTION

Let us suppose that the population under study is classified only into two mutually exclusive
and exhaustive classes, according as the given unit possesses or does not prossess the given
attnbute, say, smoking, drinking, honesty, beauty etc., under consideration.
Let us consider a population consisting of N units and let the number of units possessing the
attrbute under study be 'a', (say).
P = Proportion Ofunits (in the population ) possessingthe given attribute = a / N
Q = I —P = Proportion of population units which do not possess the given attribute.
Let us take a simple random sample without replacement (srswor) of size n fromthis
population. IfXis the number of units possessing the given attribute in the sample, then we define:
p = proportion of sampled units possessing the given attribute p = X/n.
q= = proportion of units (in the sample ) which do not possess the given attribute.
We shall now given some important results in simple random sampling without replacement
from a finite population in the form of theorems.
proportionR
Theorem 2. Sample proportion 'p' is an unbiased estimate of the population
In other words E(p) = P
Thus the sample proportion 'p' can be used as a 'point estimate' for
population
proportion P.
Theorem 3. (i) In case of simple random sample without replacement

Var (p) in srswor —

n

S.E. (p) in srswor

o/ sampling
(ii) In case of simple random sample with replacement (srswor) or in case
an infinite population, i.e., N —+ we have:
 Sam lin and Estimation Theo

Var (p) in•srswr PQ •

n
S.E(p)in srswr =
Remark. In practice, the
population proportion
In that case, an unbiased estimate of P and consequentlyQ I -- P are unknown.
Var(P) is provided by
Var(p).It is defined as follows:

Var(p)=E Var(p) (N —n)pq

Net -1)
Il. In srswr or in sampling from
NO-I)
an infinite population,

var(p) = E =
n n
6.12 BASIC STATISTICAL LAWS
Sample survey is the study of the
unknown population on the basis of a proper sample drawn
fromit. The four popular and well defined
statistic laws which indicate the utility of larger size of
the sample for the purpose of reducing samplingerrors are:
1. Law of Statistical Regularity 3. Principle of Optimization
2. Law of Inertia of Large Numbers 4. Principleof Validity
l. Law of Statistical Regularity
It states that a reasonably larger number of items selectedat random from a large group
of items, will on the average, represent the characteristics of the group. In the words of the
statisticianW. I. King. "The law of statistical regularity lays down that a moderatelylarge
numberof@temschosen at random from a large group, are almost sure (on the average) to
possessthe cithracter@sticsof the large group".
This law explains that if a reasonable large sample is selected at random without bias (i.e.,
probabilitysampling), it is almost certain that on an average, the sample so chosen, shall have the
samecharacteristics as those of the parent population from where the units constituting the sarnple
havebeen drawn, It is on the basis of this theory that the law of statistical theory tells us that a
undomselection is very likely to give a representativesample.
I Law of Inertia of Large Numbers
It states that "large groups or aggregate of data show high degree of stabilitybecause there
compensated by the extremes on the
a greater possibility that the extremes on one side are
ther side. "
to the law of statisticar regularity. It
The law of inertia of large number is a corollary
more stable and more reliable than small ones.
nphasizes the fact that large numbers are relatively
would move in only one direction. Thus, the greater
a large number, it is unlikely that the data or tendency to neutralise one another
e size Of the sample, the greater will be the compensation
result. For example, the birth rate, death rate etc. may
EdCOnsequentlymore stable would be the
a whole country, they will be found some what
ry from Place to place in India but in India as
lbleover a number of years.
 6.10 Common Proficiency Toot: Aptitv49

ne simplest method of increasing the accuracy of a sample is to increase its size. Thelarge,
the see of the sample. the mote reliable is the result. The other things remaining Unchanged,
sanvling is inversely proportional to the root of the number of items in the sample.
The Law of Statistical Regularity and the Law of the Inertia of Large Numbershave
great importance in the theory of sampling as the sampling error is reduced to minimumif the,
laws are correctly applied. e

Ill. Principle of Optimizaton

Ihe pinciple of optimization ensures that an optimum level of efficiency at a minimumcost
or the maximum efficiencyat a given level of cost can be achieved with the selectionof an
appropriate sampling design.
IV. Principle of Validity
The principle of validity states that a sampling design is valid only if it is possible to obtain
valid estimates and valid tests about population parameters. Only a probability samplingensures
this validity.
Example 1. A population consists of l, 5 and 3. Find all possible, samples of size 2 without
replacement.
3!
Solution. The possible number of of sample = 3C
1!x2!
The possible samples are : (1, 5), (1, 3) and (5, 3).
Example 2. A population comprises 3 members 2, 4, 6. What is the total number ofpossible
samples of size 2 with replacement. List all these memberse ?
Solution. Here n = 2, N = 3.
The total number of possible samples of size n out of N with replacement = N n.
Required number = 32 = 9. The possible samples are : (2, 2), (2, 4), (2, 6), (4, 2) (4,4),

Example 3. A population consists of the numbers l, 3, 5, 7 and 9.

(i) Enumerate all possible samples of size two which can be drawn from the population
without replacement.
(ii) Show that the mean of the sampling distribution of the sample means is equal to the
population mean.
it
(iil) Calculate the variance of the sampling distribution of the sample mean and show that
is less then the population variance.
Solution. The population values (y) are : 1, 3, 5, 7 and 9, and N = 5.
Ey 1+3+5+7+9 25
Mean: 5

12 +3 2 +5 2 +7 2 +9 2 165
-25=8.
Variance: 02 — — -( 5)2 =
5
without
(i) The total number of samples of size n = 2 in simple random sampling
replacement (srwor) is:

2!
= 10 . These ten samples are given below:
Sam lin and EstimationTheo
6.11
Sample No. 2 3 4
Sample Values (x) • (l, 3) (l, 5) (l,
7) (1,9) (3,5) (5, 7) (5, 9) (7,9
Sample Mean (i)
5 4 5 6 7
6 8
= (i -51 2 . 9 4
0 4 9
Also, = 50,
Mean and Variance : 30.

(ii) Mean : 50 50
-4 The mean of the sampling
distribution of the sample mean is equal to the population

Var (E) 1
30 30
5C2 10
Hence the variance of the sampling
distribution of the sample mean is 3.
(iil) Comparing this result with part (ii), we
get:
Var (F)

Variance of the sampling distribution of mean is less than the population

variance
Example 4. Construct a sampling distribution of the sample mean for the following
population when random samples of size 2 are takenfrom it (a) with replacement and (b) without
replacement.Also find the mean and standard error of the distributionm each case.
Population Unit 1 2 3 4
Observation 22 24 26 28
Solution.
22+24+26+28
Mean of pon±8tion: 4 = 25.

(22)2
S.D. of population: =
4 - (25)2 - = 2.236.

Case 1. When the sampling is with replacement

Where the samples of size 2 are drawn with replacement
16 [Here m = 4 and n = 21
Then, the number of sample: N = mn = 42 =
The 16 samples are shown below :
Sample No. Sample Values (R)
Sample No. Sample Values (R)
22 9 26, 22 24
1 22, 22
22, 24 23 10 26, 24 25
2 26
22, 26 24 11 26, 26
3 26, 28 27
25 12
4 22, 28
23 13 28, 22 25
5 24, 22
24 14 28, 24 26
6 24, 24
25 15 28, 26 27
7 24, 26
16 28, 28 28
24, 28 26
8
 2 Common Proficienc Test: QuantitativeA titude
Statis
Since all the above samples are equally likely, therefore, the probability of each
value
— . Thus. we can write the sampling distribution of R in the following table:

Mean: = 1
16 16 16 16 16 16

Also, E(R2) = — 222 +23

116( x3+27 627.5.

627.5-252 = ES = 1.581
Case Il. When the sampling is without Replacement
When random samples of size 2 are drawn without replacement,ye have : n
Sample No. Sample Values (R) Sample No. Sample Valu (R)
1 22, 24 23 4 24, 26 25
2 22, 26 24 5 24, 28 26
3 22, 28 25 6 26, 28 27

1
Since all the samples are equally likely, the probability of each value is
Thus, we can write the sampling distribution of R as .
R 23 24 25 26 27 Total

1
Sample Mean: = E(R) [23 + 24 + 25 x 2 + 26 + 27] = 25.
To find S.E. (R), we first find E(R 2) :
3760
E(R 2) —1232 + 24 2 + 205 2 + 262 + 27] = = 626.67.
6

626.67-252 =JfGi = 1.292.

Example 5. A population consists offive number 2, 3, 6, 8, ll. Consider all possible samples
of size two which can be drawn with replacement from this population, Calculate the standard
error of sample mean. Also calculate the standard error of the sample mega when thesamplesOf
size two are drawn without replacement.
Solution. In random sampling with replacernent, any one of the five numbers 2, 3, 6, 8, I I
in the first draw can be associated with any one of the these five numbers drawn in the second
 Sam i and EstimationTheo

drawand hence the total number .13

ofpossible ganples of
Siu 2 is - 25 given by crms
The possible samples are:

(6.2) (3, 11)

(6,11)

Here N = 25 and n = 2 (11,8) (11, 11)

Case 1. Sampling with
replacement
we know that the S.E.
of sample
random sampling with replacement REan in random sarrpling from an infinite or
is given by

where population standard deviation ;

n = san* siz
The population values are 2, 3,
6, 8, 11

g Ex = —(2+3+6+8+
1
11) 30
N 5

02 = Ecx-R)2 1
54

2
54
S.E.(R) = = =2.3238. = 21
Case 2. Sampling without replacement: If we have to draw sanples
then N = sc, = 10. In this case the variance of the sampling distribution of(F)
will be given by
54 10-2 54 8
Var(R) = n IV-I
10-1 10 9

S.E. (R) = = 2.1908.

6.13 UTILITY OF STANDARD ERROR OF STATISTIC

The standard error of sarnple mean and the standard error of proportion are used in
in order to obtain the following facts:
1• Standard error is used to set up the confidencelimits within which the ppulation
parameter may lie.
2• Standard error is used to test the hypothesisand to draw a statistical conclwionfrom it
3• Standard error is used to measure the variabilityofthe valuesof a statisticfrcm is ma.
4 It is generally, usedfor large samples and gives us the idea about the average amunt
error which actually occurs in estimating the values of a parameter on the basis of a
statistic.