APPLIED STATISTICS

ECN 416

SIMPLE RANDOM SAMPLING (SRS)

 SIMPLE RANDOM SAMPLING (SRS)

• A method of selecting small n units out of the N units such

that every one of the NCn distinct samples has an equal
chance of being drawn is called simple random sampling
(SRS).
• In practice, a SRS is drawn unit by unit. The units in the
population are numbered from 1 to N.
• A series of random numbers between 1 and N is then
drawn, either by mean of a table of random numbers or by
placing the numbers 1 to N in a bowl and mixing thoroughly.
• .
SIMPLE RANDOM SAMPLING (SRS) Contd.
• At any draw, the process used must give an equal chance of
selection to any number in the population not already
drawn. Those units that bear these n numbers constitute
the sample.
• Since a number that has been drawn is removed from the
population for all subsequent draws, this method is called
sampling without replacement.
• Random Sampling with replacement is also feasible: at any
draw, all N members of the population are given equal
chance of being drawn, no matter how often they have
already been drawn.
SIMPLE RANDOM SAMPLING (SRS) Contd.

• The formulas for the variance and estimated

variances of estimates made from the sample
are often simpler when sampling with
replacement.
• For this reason sampling with replacement is
sometimes used in the more complex sampling
plans although at first sight there seems little
point in having the same unit two or more
times in the sample.
 Definitions and Notations
• Usually in sample survey we decide on certain
properties that we attempt to measure and
record for every unit that comes into the
sample.
• These properties of the units are referred to
as Characteristics or more simply as items. For
example, age, height, weight, income, etc.
 Definitions and Notations Contd.
• The values obtained for any specific item in
the N units that comprise the population are
denoted by Y1, Y2, Y3, …….., YN. The
corresponding values for the units in the
sample are denoted by y1, y2, y3, ……, yn or if
we wish to refer to a typical sample member,
by yi (I = 1, 2, ….., n).
 Definitions and Notations Contd.
• We shall use capital letters to refer to
characteristics of the population and small
letters to refer to those of the sample.
 Definitions and Notations Contd.
For totals and mean we have the following
definitions:

• Population Total: Y = ∑Ni=1 (Yi) = Y1 + Y2 + Y3 +

…….. + YN
• Population Mean: Y = [ ∑Ni=1 (Yi)] / N = [ Y1 + Y2
+ Y3 +…….. + YN] / N
 Definitions and Notations Contd.

• Sample Total: y = ∑ni=1 yi = y1 + y2+ y3 + ……+ yn

• Sample Mean: y = [ ∑ni=1 yi ] / n = [y1 + y2+ y3
+ ……+ yn] / n
 Definitions and Notations Contd.
Even though we sample for many purposes our interest usually
centers on the estimation of the following population
parameters.
• Mean = Y (e.g. the average number of undergraduates per
University in Nigeria)
• Total = Y (e.g. the total number of registered commercial
buses In Ogun state
• Ratio of two totals or means R = Y/X = Y / X
• Proportion of units that fall into some defined class (e.g.
proportion of Economics students in CU for the last academic
session) P = No / N
 Definitions and Notations Contd.

• (Statement of other Relevant Definitions and

Notations)
 Example 1

• In the Nigerian census of non-agricultural

establishments, about 493 small
establishments (establishment that employs
less than 10 people) were listed in a section of
Lagos alone. A simple random sample of 30
establishments gives the following data on
employment y.
 Example 1
2, 2, 2, 2, 3, 5, 2, 3, 4, 5,
2, 4, 2, 6, 6, 7, 5, 4, 5, 3,
2, 2, 2, 2, 5, 2, 2, 2, 2, 2

• What is the average number of employees per

establishment?
• Calculate the sample estimate of the variance of
this average
 
 ESTIMATION OF PROPORTIONS
• A proportion is the mean of dichotomous or
binomial variables. When members of a class
are each associated with the characteristics
value Yi = 1 and non-members with Yi = 0.
 ESTIMATION OF PROPORTIONS Contd.

• For instance, if we want to estimate from a

simple random sample, the proportion p of
units of a population which belong to a class A
(e.g. proportion of male population
unemployed) we associate with the ith unit in
the population class a variable Yi which takes
off the value unity (1), if the unit belongs to
class A and 0 otherwise.
 ESTIMATION OF PROPORTIONS Contd.

• The total number of units belonging to a class

A is
Y = ∑Ni = 1 Yi
while the proportion belonging to class A is
P = ∑Ni = 1 Yi / N = Y
 ESTIMATION OF PROPORTIONS Contd.
• Thus the problem of estimating a population
proportion reduces to that of estimating a
population mean by defining the variable y as above.
• Hence, no new principles are involved provided that
we work with the new variate y for the purpose of
making estimates from the sample. If we denote the
number of units belonging to the class A in the
population and in the sample of size n, by N 0 and n0
respectively, then we have
 ESTIMATION OF PROPORTIONS Contd.

∑Ni = 1 Yi = N0 = ∑Ni = 1 Yi2 = NP ( for the

population)
 
∑Ni = 1 yi = n0 = ∑Ni = 1 yi2 = np (for the
sample)
Where p is the sample proportion.
 ESTIMATION OF PROPORTIONS Contd.

• An unbiased estimate of the population

proportion P in simple random sampling is
given by
P = 1/n ∑Ni = 1 yi
= n0 / n = p
 ESTIMATION OF PROPORTIONS Contd.

• In without replacement sampling, the variance

of p is

V(P) = [ 1/n(1-f) NP(1-P) ] / N -1

 ESTIMATION OF PROPORTIONS Contd.

And further,
V(p) = [ 1/n(1-f) ∑ni = 1 yi2 - ny2 ] / n-1
= [ 1/n(1-f) np (1 - p) ] / n – 1
= [ (1-f) p (1-p) ]/ n-1
 ESTIMATION OF PROPORTIONS Contd.

In with replacement sampling, we have,

V(P) = [ P (1-P) ] / n
and,
V(P) = [ p (1 - p ] / n - 1
 ESTIMATION OF RATIOS
• Very often the quantity that is to be estimated
from a SRS is the ratio of 2 variables, both of
which vary from unit to unit.
• For example, in a household survey, we may be
interested in the average number of shirts per
male. In order to do this we would record for the
ith household (i = 1, 2, 3, …….,n) , the number of
males of xi who lives there as well as the total
number of shirts yi which they possess.
 ESTIMATION OF RATIOS Contd.
• The population parameter to be estimated is
the ratio

R = Total No of Shirts / Total No of Males

= ∑Yi / ∑Xi
= Y/X
= Y / X
 ESTIMATION OF RATIOS Contd.
The corresponding sample estimate is

R = ∑yi / ∑xi
= y/ x