CHAPTER 10:

SAMPLING
DESIGN AND
SAMPLE SIZE
SUBTOPICS Practical sampling concepts and sampling terminology
Rationales for sample
Probability and non-probability sampling
Types of probability sampling
Types of nonprobability sampling
Sample statistics and population parameters
Measures of central tendency
Measures of dispersions
The normal distribution
Population distribution, sample distribution and sampling distribution
Determination of sample size
SAMPLING TERMINOLOGY

• Process of sampling involves using a portion of a population to make conclusions about the whole
population.
• The purpose of sampling is to estimate an unknown characteristic of a population.
• A sample: a subset, or some part, of a larger population
• Population (universe): Any complete group of entities that share some common set of
characteristics.
• A census: an investigation of all the individual elements that make up the population—a total
enumeration rather than a sample
RATIONALES FOR SAMPLE

• budget and time constraints, labor requirements

• inaccessible, and it would be impossible to contact all these people within a short time period
• most properly selected samples give results that are reasonably accurate
• Can be more accurate than a census- avoid possible of interviewer mistakes, tabulation errors, and
other nonsampling errors
• fieldwork and tabulation of data can be more closely supervised, a small, well-trained, closely
supervised group may do a more careful and accurate job of collecting information than a large
group of nonprofessional interviewers who try to contact everyone.
 What is the relevant population?

PRACTICAL SAMPLING
CONCEPTS: A list of elements from which a sample may be drawn;
STAGES IN THE also called working population.
SELECTION
Probability sampling: every member of the population
OF A SAMPLE has a known, equal probability of selection.
Nonprobability sampling: sample are selected based on
personal judgment or convenience
SAMPLE STATISTICS & POPULATION
PARAMETERS
• Sample statistics: measures computed from sample data
• Population parameters: measured characteristics of a specific population.
• Sample statistics are used to make inferences (guesses) about population parameters based on
sample data
• Descriptive statistics: describe basic characteristics and summarize the data in a straightforward and
understandable manner
• Inferential statistics: make inferences or to project from a sample to an entire population.
DESCRIPTIVE STATISTICS: CENTRAL TENDENCY OF
FREQUENCY DISTRIBUTION

• The mean is simply the arithmetic average

• The median is the midpoint of the distribution, or the 50th percentile
• The mode identifies the value that occurs most often
DESCRIPTIVE STATISTICS: MEASURES OF DISPERSIONS

• how the observations vary from the mean

• The range; the distance between the smallest and the largest values of a frequency distribution
• Standard deviation: A quantitative index of a distribution’s spread, or variability; the square root of
the variance for a distribution.
PROBABILITY DISTRIBUTIONS: THE NORMAL DISTRIBUTION

• Normal distribution: A symmetrical, bell-shaped distribution that describes the expected probability
distribution of many chance occurrences.
POPULATION
DISTRIBUTION, SAMPLE
DISTRIBUTION AND
SAMPLING
DISTRIBUTION
• Population distribution: A frequency distribution
of the elements of a population
• Sample distribution: A frequency distribution of
a sample
• Sampling distribution: A theoretical probability
distribution of sample means for all possible
samples of a certain size drawn from a particular
population.
ESTIMATION OF PARAMETERS
• Our goal in using statistics is to make an estimate about population parameters. A population mean,
and standard deviation, are constants, but in most instances of business research, they are unknown.
To estimate population values, we are required to sample.
• Point estimate: An estimate of the population mean in the form of a single value, usually the sample
mean
• If we specify a range of numbers, or interval, within which the population mean should lie, we can
be more confident that our inference is correct.
• Confidence interval estimate: A specified range of numbers within which a population mean is
expected to lie; an estimate of the population mean based on the knowledge that it will be equal to
the sample mean plus or minus a small sampling error
ESTIMATION OF PARAMETERS (CONT.)
• Confidence level: A percentage or decimal value that tells how confident a researcher can be about
being correct; it states the long-run percentage of confidence intervals that will include the true
population mean.
DETERMINATION OF SAMPLE SIZE

• Increasing the sample size reduces the sampling error

• Three factors are required to specify sample size: (1) the heterogeneity (i.e., variance) of the
population; (2) the magnitude of acceptable error (i.e., + some amount); and (3) the confidence level
(i.e., 90 percent, 95 percent, 99 percent).
• Only a small sample is required if the population is homogeneous.
• The magnitude of error indicates how precise the estimate must be.
DETERMINATION OF SAMPLE SIZE (CONT.)

• Three steps in determining the actual size for a simple random;

1. Estimate the standard deviation of the population.
2. Make a judgment about the allowable magnitude of error.
3. Determine a confidence level.
• The judgment about the allowable error and the confidence level are the manager’s decision to make.
Ideally, similar studies conducted in the past will give a basis for judging the standard deviation.
• However, most researchers use tables that indicate predetermined sample sizes.