CHAPTER 4:

Data Collection
and Sampling Methods
to accompany

Introduction to Business Statistics

fourth edition, by Ronald M. Weiers

Presentation by Priscilla Chaffe-Stengel

Donald N. Stengel

2002 The Wadsworth Group

 Chapter 4 - Learning

Objectives
Describe the types of studies and their
purposes:
Exploratory
Descriptive
Causal
Predictive
Explain the differences between data sources:
Primary
Secondary: Internal versus External
Differentiate between sampling designs:
Probabilitistic versus nonprobabilitistic designs
Differentiate between sampling and
nonsampling errors. 2002 The Wadsworth Group
Chapter 4 - Key Terms
Error Probability sample
Sampling Simple random sample
Nonsampling Systematic sample
Types of Studies Stratified sample
Exploratory Cluster sample
Descriptive Nonprobability sample
Causal Convenience sample
Predictive Quota sample
Types of Data Purposive sample
Primary Judgment sample
Secondary
Internal vs External
2002 The Wadsworth Group
 Types of Studies
Exploratory
Understand a problem, identify relevant
variables, formulate hypotheses
Descriptive
Establish reliable measurements
Causal
Determine relationships among variables
Predictive
Use analysis to forecast
2002 The Wadsworth Group
 Sources of Data
Primary
Data generated by the researcher for this study
Survey, experimental, observational research
most popular
Tend to require more time and expense than
secondary data
Secondary
Data gathered from another source or for another
purpose
Internal sources within the researchers
organization
External sources, including governmental,
trade, commercial and internet sources
2002 The Wadsworth Group
 Types and Sources of Error
Sampling Error
Random, nondirectional
When a sample is used instead of a census
Nonsampling Error
Directional bias overstating or understating
the true population parameter
Potential sources:
Poor sample design
Poor measurement
Poor instrumentation

2002 The Wadsworth Group

 Types of Samples
Probability, or Scientific, Samples: Each element
to be sampled has a known (or calculable) chance of
being selected. Every person has an equal
Simple
random chance of being selected.
Best when roster of the
population exists.
Randomly enter a stream
of elements and sample
Systematic every kth element. Best
when elements are
randomly ordered, no
cyclic variation.
2002 The Wadsworth Group
 Types of Samples
Probability, or Scientific, Samples: Each element
to be sampled has a known (or calculable) chance of
being selected. Randomly sample elements
Stratified
from every layer, or
stratum, of the population.
Best when elements within
strata are homogeneous.
Randomly sample elements
Cluster within some of the strata.
Best when elements within
strata are heterogeneous.

2002 The Wadsworth Group

 Types of Samples
Nonprobability Samples: Not every element has a
chance to be sampled. Selection process usually
involves subjectivity.
Convenience Elements are sampled
because of ease and
availability.
Quota Elements are sampled,
but not randomly, from
every layer, or stratum,
of the population.

2002 The Wadsworth Group

 Types of Samples
Nonprobability Samples: Not every element has a
chance to be sampled. Selection process usually
involves subjectivity. Elements are sampled
Purposive
because they are
atypical, not
representative of the
population.
Judgment
Elements are sampled
because the researcher
believes the members
are representative of the
population.
2002 The Wadsworth Group
Example: Types of Data
Problem 4.46
The Sonic Travel Agency has not kept
pace with the current boom in family
vacation air travel between the
agencys northern city and sunny
Florida. For each of the following,
indicate whether they are primary or
secondary. If secondary, further
indicate whether they are internal or
external.

2002 The Wadsworth Group

Problem 4.46
a) Sonics research a) Primary data
department The data were
conducts a survey generated by the
of past customers researcher to study
this problem.
to determine their
level of
satisfaction with
the agencys
service

2002 The Wadsworth Group

 Problem 4.46, continued
b) The Florida b) Secondary data
Bureau of Tourism The data were not
sends travel generated for the purpose
agencies across the of examining the question
nation the results of at hand.
a study describing
the characteristics External data
of winter The data were provided by
vacationers to the an outside agency, the
state, including Florida Bureau of Tourism.
where and how long
people intended to
stay.
2002 The Wadsworth Group
 Problem 4.46, continued

c) To get a c) Secondary data

better grasp of The data were not
the problem, the generated for the purpose
president of of examining the problem
at hand.
Sonic examines
the companys Internal data
annual reports The data were produced
for the past ten from within the firm, so
they are internal data.
years.
2002 The Wadsworth Grou
Example: Types of Studies
Problem 4.48
For each of the report titles below,
indicate whether the study
involved was exploratory,
descriptive, causal, or predictive.

2002 The Wadsworth Group

 Problem 4.48
a) The Popularity a) Descriptive study
of Bowling as a This is probably a
Participant Sport in descriptive study
showing the number of
Ohio. people who bowl in Ohio.

b) Causal study
b) The Effects of
This is probably a causal
TV Violence on study that examines the
Crime in Small effect of TV violence (the
Towns. cause) on crimes in
small towns (the
outcomes).
2002 The Wadsworth Group
 Problem 4.48, continued
c) A Preliminary c) Exploratory study
Investigation of This is probably an
the Market for exploratory study that
Pet Foods. points out relationships
and possible hypotheses
for further study.
d) Family d) Predictive study
Vacationing in This is probably a
the 21st predictive study to
Century. forecast vacationing
patterns in the 21st
century.
2002 The Wadsworth Grou
Example: Types of Errors
Problem 4.64
Researchers at a university with an
enrollment of 12,000 take a census of
the entire student population, asking:
Shoplifting is not only illegal, it raises
the prices that we all have to pay. Have
you ever shoplifted from the university
bookstore? Based on this, discuss the
possible presence of a) sampling and
b) nonsampling error.
2002 The Wadsworth Group
 Problem 4.64
a) Sampling error a) Since the study
not present includes the entire
student population,
there will be no
sampling error present.
b) Because the
b) Nonsampling questions wording
error present invites biased
responses, students
may be afraid to admit
to shoplifting, so there
will be nonsampling
errors present.
2002 The Wadsworth Group