Sampling

MBA -I

 Sample: A small part representing the full population or universe. Importance(advantages) Economical Saves time Saves work force Testing of accuracy-results of two samples can be compared. Only method in many cases.

Disadvantages(demerits): Can mislead result.(if survey is not properly done). Need specialised knowledge. Not useful in hetrogeneous units. Impossibility of sampling(when population is very small)

Methods of sampling
1. Random sampling- also known as chance or probability sampling as each unit has equal chance of being selected. Types of random sampling:a) Simple random sampling-practically simple random sampling is known as random sampling. Example: Lottery Method Rotating the drum- contains wooden square pieces numbering 0 ,1,29.

b) Restrictive random sampling-(those random sampling which has some restrictions) Example: Stratified random sampling:total no of units of population is divided into groups or strata and units are picked from these groups. Systematic random sampling:-units are arranged in some systematic way like alphabets,numericals,etc and then units of sample are selected with definite sequence and equal diatances.

c)Multi stage random sampling:samples are selected at every stage and at each stage random sampling is used. d)Cluster sampling:total population is divided in to clusters (groups) and simple random sample is drawn from each cluster.

2. Non-random sampling- does not provide equal chance to each unit of population in selection. Types of non-random sampling: a. Purposive sampling- investigators selects the units according to his own choice and requirements. b. Qouta sampling- investigators fixes certain qouta and then selection is done from these qoutas.

c). Convenience Sampling- sample units are selected at the convenience of the investigator e.g using telephone directory,using government records.etc for selecting units of sample. d). Extensive sampling-only those units are ignored which are difficult to collect.

Sampling theory
A study concern with population and samples drawn from population. Objectives of sampling theory: 1.Study of population characteristics. 2.Hypothesis testing.

Sampling and non sampling errors

Sampling errors: difference between sample result and population result caused mainly by faulty selection of samples . Non-sampling error: causes: Incomplete investigation. Printing errors. Faulty questions in questionnaire. Calculations mistakes. Incomplete investigation,etc.

Parameter and statistic

Sampling Distribution
The frequency distribution which is formed with different values of statistic(like mean ,median,standard deviation,etc)computed from different samples of equal size drawn from the same population . It has two properties 1.It is equal to Normal Distribution. 2.Equity of mean

Concept of Standard Error

When variation of observation of a sampling distribution is calculated it is called as standard error. Therefore the standard deviation of sampling distribution is known as standard error of a statistic.

Hypothesis testing
Hypothesis :- an assumption or statement about population. Hypothesis testing:- a procedure that decides whether to accept the hypothesis or not by analysing the information obtained from the sample.

General procedure for testing the hypothesis

1. Statement of the problem :- problem is clearly stated or defined i.e. whether decision is taken to accept the hypothesis or to reject it or it is to be taken in respect of difference between sample or population. 2. Setting up a hypothesis:- here a hypothesis is set up(null hypothesis & alternative hypothesis) ; common way of formulating the hypothesis is that there is no difference between sample mean and population mean. example: mean salary of employees of the company and mean salary of sample of 50 employees from the same company is equal will be written as Ho: = x Ho:-Null hypothesis :-population mean x :-sample mean

As against null hypothesis there will be altenate hypothesis(H) which challenges the null hypothesis. Example: H: x H Alternate hypothesis
:- population mean

x:- sample mean

or or H : < x H : > x

3.Applying test :- this step uses various test to

check the hypothesis.We use different test for large and small samples. 4. Level of significance:- this step checks the confidence level .Generally confidence is checked at 1% and 5% level of significance. 1% level of significance means 99% confidence. 5% level of significance means 95% confidence .

5.) critical values: these are standard values obtained from specific tables at a particular level of significance from which test values are compared. 6.) Interpretation: in this method final decision is taken by comparing test values from critical value.

Errors in hypothesis
Type I error: when null hypothesis is true but it is rejected . Type II error : when null hypothesis is false but it is accepted.