Business Analytics for Decision

Making

Submitted to Submitted by Ms. Diksha Gandhi

Barsha Lama Ghising
210354
MBA 2nd semester
 SAMPLING METHODS

There are two types of sampling methods i.e.

1) Probability sampling method

2) Non-Probability sampling method
 Probability sampling method
Under this every member of the population has a equal chance of being selected . This is
the most common method of sampling. Probability sampling involves random selection,
allowing you to make strong statistical inferences about the whole group.
There are various probability sampling methods such as
1. Simple random sampling
2. Stratified random sampling
3. Systematic sampling
4. Cluster sampling
5. Multi-stage sampling
 Simple random sampling -
Under this, an equal chance of selection is given to each and every item of the universe in
the sample. It is the most common and effective method of selecting a sample. There is no
biasness in this method as it is randomly chosen.
Example – Lottery method.

 Stratified random sampling –

In this method, the sample is selected from different homogeneous strata or groups of a
universe instead of a heterogenous universe as a whole. In simple terms, the population is
divided into groups called strata based on relevant characters such as gender, age, income
etc and random samples are drawn from each group.
 Systematic sampling –
A systematic sample is formed by selecting one unit at random and then selecting random
units at evenly spaced intervals until the sample has been formed. This method is used in
those cases where a complete list of the population from which the sample is to be drawn is
available. The list may be prepared in alphabetical, geographical, numerical or in
ascending or descending order.

 Multi-stage sampling –
Under this method, first the entire population is divided into stages or sub stages, then
these units are further subdivided and this sub-division is done randomly if possible, after
this the sub-division goes on up till the selection of sample.
Cluster sampling –
In cluster sampling, researchers divide a population into smaller groups known as
clusters. They then randomly select among these clusters to form a sample. Cluster
sampling is a method of probability sampling that is often used to study large
populations.
Non-Probability sampling methods

Under this not all members of the population have an equal chance of participating in
the study. Non-probability sampling is defined as a sampling technique in which the
researcher selects samples based on the subjective judgment of the researcher rather
than random selection.
There are four types of non-probability sampling methods.
1. Convenience sampling
2. Judgement/purposive sampling
3. Quota sampling
4. Snowball sampling
 Convenience sampling –
Convenience sampling is defined as a method adopted by researchers where they collect
market research data from a conveniently available pool of respondents. It is the most
commonly used sampling technique as it is uncomplicated, and economical. The choice
of sampling units chosen by the researcher on the basis of convenience and
approachability is known as convenience sampling.

 Judgement/Purposive sampling –
Judgmental sampling, also called purposive sampling or authoritative sampling, is a non-
probability sampling technique in which the sample members are chosen only on the
basis of the researcher’s knowledge and judgment.
 Quota sampling –
Quota sampling is the most commonly used non-probability sample method which is
most commonly used in consumer surveys. In this method, data is collected from a
homogeneous group.
Example - 65% female and 35% male.
 Snowball sampling –
Snowball sampling or chain-referral sampling is defined as a non-probability sampling
technique in which the samples have traits that are rare to find. This is a sampling
technique, in which existing subjects provide referrals to recruit samples required for a
research study.