Sampling Theory

Dr. T. T. Kachwala

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 Population Characteristics

There are two ways in which reliable data or information

for Population Characteristics may be obtained:

i. Complete Enumeration Survey (Census Method)

ii. Sampling Method

 We use Complete Enumeration Survey to examine every

person or item in the population we wish to describe. This

method is accurate but costly & time consuming.

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 Sampling Method

 We use sampling methods, when it is not possible to count or measure

every item in the population. Sampling is simply the process of

learning about the population on the basis of the sample drawn from it.

 Thus, in the sampling technique instead of every unit of the population,

only a part of the population is studied and the conclusions are drawn
on that basis for the entire population.

 A sample is not studied for its own sake. The basic objective of its

study is to draw inference about the population. In other words,

sampling is only a tool which helps to know the characteristics of the
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 Characteristics of Population & Sample
Mathematically, we can describe the characteristics of samples and populations
by using measures such as mean, standard deviation and proportion of success.
When these terms describe the characteristics of a sample, they are called
statistics. When they describe the characteristics of a population, they are called
parameters. i.e. A statistic is a characteristic of a sample & A parameter is a
characteristic of a population. In both the cases the study objective is the same
i.e. to predict the value of the population parameter ( or  or p).
We use the following symbol to differentiate population characteristic and
sample characteristic :
Parameters (Population) Statistics (Sample)
Population size = N Sample size = n
Population mean =  Sample mean = X bar
Population S.D =  Sample S.D = s
Population proportion of success = p Sample proportion of success = p bar

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 Principles of Sampling
There are two important principles on which the theory of sampling is based:
i. Principle of Statistical Regularity
ii. Principle of Inertia of Large Numbers
Principle of Statistical Regularity: states that if the sample drawn is a random
sample, then the characteristics of the sample will be very close to the
characteristics of the population.
Random Sample is a sample such that each an every item of the population
has an equal and independent chance of being selected in the sample.
 Principle of Inertia of Large Numbers: states that every thing else remaining
the same, larger the sample sizes, more accurate are the estimates of the
Population Parameters.

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 Selection of Random Sample

To select a simple random sample one may use:

 Lottery method
 Random Number Tables
 Excel Functions

Apart from simple random sampling, there are other

attempts of sampling to approximate simple random
sampling. These are systematic sampling, stratified
sampling and cluster sampling.

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 Methods of Sampling

 Systematic Sampling: In this method, elements are

selected from the population at a uniform interval that is
measured in time, order or space
 Example 1: We want to interview every tenth student in a class
of 100 students; we choose a random starting point in the first
10 names and then pick every 10th name thereafter; example -
Roll Nos. 5, 15, 25, 35, 45 and up to 95}.
 Example 2: In an audit in Bank for Cheque transactions
(cheques are arranged in time chronology from 1st day to the
last day), by selecting cheques at regular intervals we can
ensure that cheques prepared at different times (days) are
selected in our sample study

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 Methods of Sampling

 Stratified Sampling: We divide the population into relatively

homogenous groups (strata). We select at random from each stratum
a specified number of elements corresponding to the proportion of
that stratum in the population as a whole.
 Example 1: Selection of students for group work based on academic
background Arts, Commerce, Science, Engineering, Other Disciplines.
 Example 2: Consumer Price Index is based on predefined groups
(strata) like food & beverages, light, housing, clothing etc.
 Example 3: Doctor wants to find out how many hours his patient
sleeps. He takes a random sample of four age groups: less than 19
years, 20-39, 40-59, 60 & above
 Stratified Sampling is popular when the population is already
divided in to groups of different sizes & we wish to acknowledge
this fact

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 Methods of Sampling

 Cluster Sampling: We divide the population into clusters and then

select a random sample of these clusters. After selecting a certain
cluster, each element of this cluster would be examined.
 Cluster Sampling is sometimes referred as Area sampling or
Territory sampling. We divide the city map in to areas & then select
a few areas randomly & then study each house in that area
 Example 1: Survey to find out the number of TV sets per house in
Mumbai city
 Example 2: Political polling for exit interviews in an election ward
Each of these methods have been developed for their precision,
economy or physical ease. They are at best an approximation of
simple random sampling. However simple random sampling
procedure is assumed in all our discussions of statistical inferences.
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 Thank you

Dr. T. T. Kachwala

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