INTERNATIONAL ISLAMIC

UNIVERSITY ISLAMABAD

Department of Business Administration

Course Title: Advanced Quantitative Technique

Course Facilitator:

Presented by: Muhammad Bilal

Registration #: F10-MSFIN-96
SAMPLING:
Sampling is that part of statistical practice concerned with the selection of an unbiased
or random subset of individual observations within a population of individuals intended
to yield some knowledge about the population of concern, especially for the purposes of
making predictions based on statistical inference. Sampling is an important aspect of data
collection.

Researchers rarely survey the entire population for two reasons the cost is too high, and
the population is dynamic in that the individuals making up the population may change
over time. The three main advantages of sampling are that the cost is lower, data
collection is faster, and since the data set is smaller it is possible to ensure homogeneity
and to improve the accuracy and quality of the data.

Each observation measures one or more properties (such as weight, location, color) of
observable bodies distinguished as independent objects or individuals. In survey
sampling, survey weights can be applied to the data to adjust for the sample design.
Results from probability theory and statistical theory are employed to guide practice. In
business and medical research, sampling is widely used for gathering information about a
population.
SAMPLING TECHNIQUES
Probability Techniques
o Random sampling
o Stratified random sampling
o Cluster sampling
o Systematic sampling
Non probability Techniques
o Convenience sampling
o Judgmental (a.k.a., purposive) sampling
o Snowball (a.k.a., network or chain) sampling
o Quota sampling

a) Probability Techniques

A probability sampling method is any method of sampling that utilizes some form
of random selection. In order to have a random selection method, you must set up some
process or procedure that assures that the different units in your population have equal
probabilities of being chosen. Humans have long practiced various forms of random
selection, such as picking a name out of a hat, or choosing the short straw. These days,
we tend to use computers as the mechanism for generating random numbers as the basis
for random selection.

1. Random Sampling:

A method of selecting items from a population such that every possible sample of a
specific size has an equal chance of being chosen
o Sampling without replacement.
o Sampling with replacement.
o The random number table.

2. Stratified Random Sampling:

To ensure that the sample is representative of the characterizing features, a population

can be divided into sub-populations called strata Stratified random sampling is
particularly useful when some sub-populations are relatively small and may be missed in
a simple random sample.
If done correctly, stratified sampling can be used to estimate a population's characteristics
with less error than the same- size simple random sample.
The technique is particularly useful when the population contains extreme points that can
be grouped into separate strata.
3. Cluster Sampling:

Contacting randomly selected individuals may sometimes be very costly and time
consuming (e.g. traveling to a lot of parts of Pennsylvania, the US, or the world).
A systematic or stratified sampling procedure also would probably require visiting each
location. Cluster sampling is a method by which the population is divided into groups, or
clusters, and a sample of clusters is taken to represent the population.
First step is to randomly select various clusters (m) from the total possible clusters
(M).Then, question each individual or select respondents randomly.
Each cluster should be representative of all the population and thus heterogeneous with
respect to the variable of interest.
However, we often experience some degree of homogeneity (e.g. if clusters are
determined geographically). Since similar people and items tend to group together, more
clusters will have to be samples than if the clusters were heterogeneous.
The cost and problems associated with statistically analyzing the sample data obtained
from cluster sampling are generally increased.
However, cost advantage over other methods makes cluster sampling popular in e.g.
political polls

4. Systematic Sampling

Example: Determine the viewpoint on NAFTA among Duquesne's 10,000 students.

Contact 250 students by selecting every 40th student on the roster.
First, randomly chose the starting point.
Systematic sampling should be used as an alternative to simple random sampling only
when the population is randomly ordered .
Easy method to use.Sample can be more evenly distributed across the population and
thus be more representative

b) Non probability Sampling Techniques

Sometimes a probability sample is either not possible or not desirable. Judgment

sampling is appropriate when decision makers believe that some population members
have more or better information those other members.
Example: If you had to pick only one city in the US in which to test market a new
product, you probably would not select that city randomly.

1.Convenience (ease) sampling

Example: Market research sampling outside of commercial entities: Here they hope to get
a large sample of people who they hope represent the target population.
2. Judgmental Sampling:

Hand-pick subjects on the basis of specific characteristics. Ensures balance of group sizes
when multiple groups are to be selected. Samples are not easily defensible as being
representative of populations due to potential subjectivity of researcher.

3. Snow Ball Sampling:

Subjects with desired traits or characteristics give names of further appropriate subjects.
Possible to include members of groups where no lists or identifiable clusters even exist
(e.g., drug abusers, criminals). No way of knowing whether the sample is representative
of the population.

4. Quota sampling:

The decision maker requires the sample to contain a certain number of items with a given
characteristic. Ensures selection of adequate numbers of subjects with appropriate
characteristics. Not possible to prove that the sample is representative of designated
population.