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Paper 3 · Statistics

Sampling

Simple and exam-focused CA Foundation Statistics notes on sampling, sample surveys, errors, sampling distribution, standard error and methods of sampling.

Sampling in One Minute

Sampling means studying a properly selected part of a population and using it to understand the whole population.

PopulationThe complete group
SampleThe part actually studied
ParameterA population measure
StatisticA sample measure
Sampling ErrorDifference caused by using a sample
Standard ErrorPrecision of a sample statistic

1. Meaning and Need for Sampling

A business may want to know the average life of all bulbs produced in a factory. Testing every bulb would be costly, slow and destructive. So, a smaller representative group is tested and the result is used to judge the full production.

Core Idea Study a representative part when studying the whole population is impractical.

Why do we use sampling?

  • The population may be too large or infinite.
  • A complete enquiry may require too much time and money.
  • Testing may destroy the item, such as bulb-life or strength testing.
  • A smaller enquiry can be supervised more carefully.
  • Decisions may be needed quickly.

Three stages of a sampling problem

1SelectDraw a representative sample
2EstimateCalculate a sample measure
3DecideInfer about the population

2. Four Basic Principles of a Sample Survey

R

Statistical Regularity

A fairly large sample selected at random tends, on average, to represent the population.

I

Inertia of Large Numbers

Other things remaining the same, larger samples generally give more stable and reliable results.

O

Optimisation

Select the design that gives the required accuracy at minimum cost, or maximum accuracy for the available cost.

V

Validity

The design must permit valid estimation and valid testing of population parameters.

Memory Code RIOV — Regularity, Inertia, Optimisation and Validity.
Important A large sample is not necessarily a good sample. It must also be selected properly and without bias.

3. Sampling or Census?

A census studies every unit of the population. A sample survey studies only selected units.

Basis Sample Survey Census
CoverageSelected unitsEvery unit
TimeUsually fasterUsually slower
Total costUsually lowerUsually higher
Sampling errorPresentAbsent
Non-sampling errorPossiblePossible
Destructive testingSuitableNot possible
Information on every unitNot availableAvailable

Prefer Sampling When

  • The population is very large.
  • Testing is destructive.
  • Time and cost are limited.

Prefer Census When

  • The population is small.
  • Every individual unit must be known.
  • Missing one defect can be dangerous.

4. Errors in a Survey

Sampling Error

It arises because only a part of the population is studied.

  • Defective sampling design
  • Substitution of selected units
  • Faulty definition of sampling units
  • Wrong choice of statistic
  • High variability in the population

Non-Sampling Error

It arises from collection, response, recording or measurement problems.

  • Non-response or incomplete coverage
  • Wrong measurement or recording
  • Memory failure or incorrect answers
  • Enumerator or respondent bias
  • Communication gap
Most Important Distinction Sampling error occurs only in a sample survey. Non-sampling error can occur in both a sample survey and a census.

5. Essential Terms

Population or Universe

The complete collection of all units under study.

Population Size (N)

The total number of units in the population.

Sample

A representative part selected from the population.

Sample Size (n)

The number of units included in the sample.

Sampling Unit

The basic unit selected, such as a person, household, machine or product.

Sampling Frame

A complete and updated list of all sampling units.

Types of Population

TypeMeaningExample
FiniteContains a countable number of unitsStudents in a college
InfiniteContains unlimited or practically uncountable unitsFuture production of bulbs
ExistentConsists of real unitsWorkers in a factory
HypotheticalExists only conceptuallyOutcomes from unlimited coin tosses

6. Parameter, Statistic and Statistical Inference

PopulationUnknown parameter
InferenceEstimate or decision
SampleKnown statistic
ConceptMeaningExamples
ParameterA numerical characteristic of the populationPopulation mean μ, population variance σ², population proportion P
StatisticA numerical measure calculated from sample observationsSample mean x̄, sample variance s², sample proportion p
Memory Link Parameter belongs to the Population. Statistic belongs to the Sample.

7. Sampling Distribution and Standard Error

Sampling Fluctuation

Different samples of the same size may contain different units. Therefore, the value of a statistic such as the sample mean may change from one sample to another. This variation is called sampling fluctuation.

Sampling Distribution

The probability distribution of a statistic obtained from all possible samples of a fixed size is called its sampling distribution.

Standard Error

The standard deviation of a statistic is called its standard error. It measures the precision of the statistic as an estimate of the population parameter.

Mean, SRS with replacementSE(x̄) = σ / √n
Mean, SRS without replacementSE(x̄) = (σ / √n) × √[(N − n)/(N − 1)]
Proportion, SRS with replacementSE(p) = √(PQ / n)
Effect of Sample Size Standard error decreases as sample size increases because SE is inversely related to √n.

Number of Possible Samples

With ReplacementNn
Without ReplacementNCn

8. Types of Sampling

Probability Sampling

Each population unit has a known chance of selection.

Simple Random · Stratified · Multistage

Mixed Sampling

Selection is partly random and partly based on a fixed rule.

Systematic Sampling

Non-Probability Sampling

Selection depends on judgement rather than known probabilities.

Purposive or Judgement Sampling

9. Probability Sampling Methods

Simple Random Sampling

Every unit has an equal chance of being selected. Selection may be with replacement or without replacement.

Best suited for: A population that is reasonably homogeneous and not extremely large.

Stratified Sampling

The population is divided into internally homogeneous groups called strata. A sample is then selected from each stratum.

Best suited for: A large heterogeneous population containing clearly different groups.
  • Proportional or Bowley allocation: sample size from each stratum is proportional to its population size.
  • Neyman allocation: allocation depends jointly on population size and standard deviation of the stratum.

Multistage Sampling

Selection is made through successive levels. For example: State → District → Village → Household.

Best suited for: A large population spread over a wide geographical area.

10. Systematic and Purposive Sampling

Systematic Sampling

Select one starting unit at random and then choose every kth unit.

Sampling interval: k = N / n

Advantage: Simple, quick and inexpensive.

Risk: Hidden periodicity in the list may produce a biased sample.

Purposive Sampling

The sampler selects units according to personal judgement.

Advantage: Useful for specialised or exploratory enquiries.

Limitation: It is subjective and does not support valid statistical hypothesis testing.

Quick Method Selector

SituationSuitable Method
Population is fairly homogeneousSimple Random Sampling
Population contains distinct groupsStratified Sampling
Population is geographically widespreadMultistage Sampling
A complete ordered list is availableSystematic Sampling
Selection depends on expert judgementPurposive Sampling

11. Worked Examples

Example 1: Number of Samples

A population has 5 units and a sample of 3 units is drawn without replacement.

Number of samples5C3 = 10

Example 2: With Replacement

A population has 3 units and samples of size 2 are drawn with replacement.

Number of samples32 = 9

Example 3: Systematic Sample

A list contains 1,000 customers and a sample of 100 is required.

Sampling intervalk = 1000 / 100 = 10

If the random start is 6, the selected units are 6, 16, 26, 36 and so on.

MCQ Shortcut With replacement usually suggests Nn. Without replacement usually suggests NCn.
Chapter at a Glance

12. Sampling — Visual Revision Map

Read the complete chapter in one connected flow.

SAMPLING Study a representative part to understand the whole population
WHY SAMPLE? Time · Cost · Speed · Destructive Testing
Population Complete group
Sample Selected part
Statistic Sample measure
Inference Estimate or decision
Parameter Population measure

Survey Errors

Sampling Error Arises because only part of the population is studied
Non-Sampling Error Recording, response, measurement or coverage error

Sampling Methods

Simple Random Stratified Multistage Systematic Purposive

Choose the Correct Method

Homogeneous → Simple Random Distinct Groups → Stratified Geographical Levels → Multistage Ordered List → Systematic Personal Judgement → Purposive
With Replacement Nn
Without Replacement NCn
Precision SE ∝ 1 / √n