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Basics of sampling I

A sample is a part of a whole to show what the rest is like. Sampling helps to determine the corresponding value of the population and plays a vital role in marketing research.

Samples offer many benefits: Save costs: Less expensive to study the sample than the population. Save time: Less time needed to study the sample than the population . Accuracy: Since sampling is done with care and studies are conducted by skilled and qualified interviewers, the results are expected to be accurate. estructive nature of elements: For some elements, sampling is the way to test, since tests destroy the element itself.

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Basics of sampling II

Limitations of Sampling

Sampling Process

Defining the population Developing a sampling Frame

Demands more rigid control in undertaking sample operation. Minority and smallness in number of sub-groups often render study to be suspected. Accuracy level may be affected when data is subjected to weighing. Sample results are good approximations at best.

What constitutes the units of analysis (HDB apartments)? What are the sampling units (HDB apartments occupied in the last three months)? What is the specific designation of the units to be covered (HDB in town area)? What time period does the data refer to (December 31, 1995)

A sample frame is the list of all elements in the population (such as telephone directories, electoral registers, club membership etc.) from which the samples are drawn.

A sample frame which does not fully represent an intended population will result in frame error and affect the degree of reliability of sample result.

Subjective methods (less sophisticated methods)

The rule of thumb approach: eg. 5% of population Conventional approach: eg. Average of sample sizes of similar other studies; Cost basis approach: The number that can be studied with the available funds;

Confidence interval approach.

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Sample sizes used in different marketing research studies

TYPE OF STUDY Identifying a problem (e.g.market segmentation) Problem-solving (e.g., promotion) Product tests Advertising (TV, Radio, or print Media per commercial or ad tested) Test marketing Test market audits Focus groups MINIMUM SIZE 500 200 200 150 200 10 stores/outlets 2 groups TYPICAL RANGE 1000-2500 300-500 300-500 200-300 300-500 10-20 stores/outlets 4-12 groups

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Sample size determination using statistical formulae: The confidence interval approach

To determine sample sizes using statistical formulae, researchers use the confidence interval approach based on the following factors:

Desired level of data precision or accuracy; Amount of variability in the population (homogeneity); Level of confidence required in the estimates of population values.

Availability of resources such as money, manpower and time may prompt the researcher to modify the computed sample size. Students are encouraged to consult any standard marketing research textbook to have an understanding of these formulae.

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Probability Sampling

Every element in the target population or universe [sampling frame] has equal probability of being chosen in the sample for the survey being conducted. Scientific, operationally convenient and simple in theory. Results may be generalized.

Non-Probability Sampling

Every element in the universe [sampling frame] does not have equal probability of being chosen in the sample. Operationally convenient and simple in theory. Results may not be generalized.

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Probability sampling

Four types of probability sampling

Simple random sampling

Requires the use of a random number table.

Stratified sampling

Use of random number table may be necessary

Systematic sampling

Requires the sample frame only, No random number table is necessary

Cluster sampling

Use of random number table may be necessary

NonNon-probability sampling

Very simple types, based on subjective criteria

Convenient sampling Judgmental sampling

Quota sampling

Special type

Snowball Sampling

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1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 37 50 99 70 18 65 83 58 54 56 34 02 43 92 67

2 75 91 14 72 46 76 76 90 74 81 99 26 04 56 42

3 4 10 56 23 01 06 34 95 07 67 92 06 92 25 51 43 49 41 50 00 49 11 25 84 11 73 21 27 36 22 26

5 98 52 21 33 47 33 70 20 15 40 22 95 00 11 20

6 66 82 01 25 32 60 60 98 78 07

9 10 11 12 13 14 15 16 17 18 19 20 45 35 12 77 22 51 82 42 02 59 83 34 15 88 35 78 84 46 54 15 53 47 15 15 97 76 99 34 51 46 86 01 03 02 74 45 02 61 78 09 23 36 68 55 30 26 64 44 76 75 51 08 56 67 80 45 00 01 76 64

03 86 34 80 98 44 22 22 98 11 57 96 27 10 27 16 03 25 79 07 80 54 55 41 19 16 23 58 03 78 47 43 58 08 75 29 63 66 89 09 95 13 57 21 20 03 32 93 96 05 53 52 36 43 26 72 11 65 14 63 06 87 10 11 57 78 38 71 22 86 28 49 83 74 48 14 01 93 17 51

38 22 32 85 26 37 00 62 27 74 46 02 61 59 81 87 59 38 18 30 95 38 36 78 23 20 19 65 48 50 45 73 80 02 61 31 10 06 72 39 02 00 47 06 98 06 86 88 77 86 59 57 66 13 82 33 97 21 31 61 60 84 18 68 48 85 00 00 48 35 48 57 63 38 84

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________________________________________________ 1. Assign a unique number to each population element in the sampling frame. Start with serial number 1, or 01, or 001, etc. upwards depending on the number of digits required. 2. Choose a random starting position. 3. Select serial numbers systematically across rows or down columns. 4. Discard numbers that are not assigned to any population element and ignore numbers that have already been selected. 5. Repeat the selection process until the required number of sample elements is selected.

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Your marketing research lecturer wants to randomly select 20 students from your class of 100 students. Here is how he can do it using a random number table.

Step 1: Assign all the 100 members of the population a unique number.You may identify each element by assigning a two-digit number. Assign 01 to the first name on the list, and 00 to the last name. If this is done, then the task of selecting the sample will be easier as you would be able to use a 2-digit random number table.

NAME NUMBER NAME NUMBER

Adam, Tan Carrol, Chan . Jerry Lewis . Lim Chin Nam . Singh, Arun

01 08 18 26 30

Tan Teck Wah Tay Thiam Soon .. Teo Tai Meng . Yeo Teck Lan Zailani bt Samat

42 61 87 99 00

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Step 2: Select any starting point in the Random Number Table and find the first number that corresponds to a number on the list of your population. In the example below, # 08 has been chosen as the starting point and the first student chosen is Carol Chan. 10 09 73 25 33 76 37 54 20 48 05 64 08 42 26 89 53 19 90 01 90 25 29 09 12 80 79 99 70 80 66 06 57 47 17 34 31 06 01 08 05 45 Step 3: Move to the next number, 42 and select the person corresponding to that number into the sample. #87 Tan Teck Wah Step 4: Continue to the next number that qualifies and select that person into the sample. # 26 -- Jerry Lewis, followed by #89, #53 and #19 Step 5: After you have selected the student # 19, go to the next line and choose #90. Continue in the same manner until the full sample is selected. If you encounter a number selected earlier (e.g., 90, 06 in this example) simply skip over it and choose the next number.

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Starting point: move right to the end of the row, then down to the next row row; move left to the end, then down to the next row, and so on.

Systematic sampling

y Very similar to simple random sampling with one exception. y In systematic sampling only one random number is needed throughout the entire sampling process. y To use systematic sampling, a researcher needs: [i] a sampling frame of the population; and is needed. [ii] a skip interval calculated as follows: Skip interval = population list size Sample size y Names are selected using the skip interval. y f a researcher were to select a sample of 1000 people using the local telephone directory containing 215,000 listings as the sampling frame, skip interval is [215,000/1000], or 215. The researcher can select every 215th name of the entire directory [sampling frame], and select his sample.

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Step 1: Select a listing of the population, say the City Telephone Directory, from which to sample. Remember that the list will have an acceptable level of sample frame error. Step 2: Compute the skip interval by dividing the number of entries in the directory by the desired sample size. Example: 250,000 names in the phone book, desired a sample size of 2500, So skip interval = every 100th name Step 3: Using random number(s), determine a starting position for sampling the list. Example: Select: Random number for page number. (page 01) Select: Random number of column on that page. (col. 03) Select: Random number for name position in that column (#38, say, A..Mahadeva) Step 4: Apply the skip interval to determine which names on the list will be in the sample. Example: A. Mahadeva (Skip 100 names), new name chosen is A Rahman b Ahmad. Step 5: Consider the list as circular; that is, the first name on the list is now the initial name you selected, and the last name is now the name just prior to the initially selected one. Example: When you come to the end of the phone book names (Zs), just continue on through the beginning (As).

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Stratified sampling I

A three-stage process:

Step 1- Divide the population into homogeneous, mutually exclusive and collectively exhaustive subgroups or strata using some stratification variable; Step 2- Select an independent simple random sample from each stratum. Step 3- Form the final sample by consolidating all sample elements chosen in step 2.

May yield smaller standard errors of estimators than does the simple random sampling. Thus precision can be gained with smaller sample sizes.

Proportionate: involving the selection of sample elements from each stratum, such that the ratio of sample elements from each stratum to the sample size equals that of the population elements within each stratum to the total number of population elements. Disproportionate: the sample is disproportionate when the above mentioned ratio is unequal.

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To select a proportionate stratified sample of 20 members of the Island Video Club which has 100 members belonging to three language based groups of viewers i.e., English (E), Mandarin (M) and Others (X). Step 1: Identify each member from the membership list by his or her respective language groups

00 (E ) 01 (E ) 02 ( X ) 03 (E ) 04 (E ) 05 (E ) 06 (M) 07 (M) 08 (E ) 09 (E ) 10 (M) 11 (E ) 12 ( X ) 13 (M) 14 (E ) 15 (M) 16 (E ) 17 ( X ) 18 ( X ) 19 (M) 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 (M) (X) (E ) (X) (E ) (M) (E ) (M) (X) (E ) (E ) (E ) (E ) (M) (E ) (M) (E ) (E ) (X) (X) 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 (E ) (X) (X) (E ) (M) (E ) (X) (M) (E ) (E ) (E ) (M) (X) (M) (E ) (E ) (M) (E ) (M) (M) 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 (X) (M) (M) (E ) (E ) (X) (M) (E ) (M) (E ) (E ) (E ) (M) (E ) (X) (E ) (E ) (M) (M) (E ) 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 (M) (E ) (E ) (M) (X) (E ) (E ) (M) (X) (E ) (X) (E ) (M) (E ) (E ) (X) (E ) (E ) (M) (E )

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Step 2: Sub-divide the club members into three homogeneous sub-groups or strata by the language groups: English, Mandarin and others.

EnglishLanguage Stratum 00 22 40 64 82 01 24 43 67 85 03 26 45 69 86 04 29 48 70 89 05 30 49 71 91 08 31 50 73 93 09 32 54 75 94 11 34 55 76 96 14 36 57 79 97 16 37 63 81 99 Mandarin Language Stratum 06 35 66 07 44 68 10 47 72 13 51 77 15 53 78 19 56 80 20 58 83 25 59 87 27 61 92 33 62 98 Other Language Stratum . 02 42 12 46 17 52 18 60 21 65 23 74 28 84 38 88 39 90 41 95

0.2

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y Determine the number of sample elements (n1) to be selected from the English language stratum. In this example, n1 = 50 x f = 50 x 0.2 =10. By using a simple random sampling method [using a random number table] members whose numbers are 01, 03, 16, 30, 43, 48, 50, 54, 55, 75, are selected. y Next, determine the number of sample elements (n2) from the Mandarin language stratum. In this example, n2 = 30 x f = 30 X 0.2 = 6. By using a simple random sampling method as before, members having numbers 10,15, 27, 51, 59, 87 are selected from the Mandarin language stratum. y In the same manner, the number of sample elements (n3) from the Other language stratum is calculated. In this example, n3 = 20 x f = 20 X 0.2 = 4. For this stratum, members whose numbers are 17, 18, 28, 38 are selected y These three different sets of numbers are now aggregated to obtain the ultimate stratified sample as shown below. S = (01, 03, 10, 15, 16, 17, 18, 27, 28, 30, 38, 43, 48, 50, 51, 54, 55, 59, 75, 87)

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Cluster sampling

Is a type of sampling in which clusters or groups of elements are sampled at the same time. Such a procedure is economic, and it retains the characteristics of probability sampling. A two-step-process:

Step 1- Defined population is divided into number of mutually exclusive and collectively exhaustive subgroups or clusters; Step 2- Select an independent simple random sample of clusters. One special type of cluster sampling is called area sampling, where pieces of geographical areas are selected.

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Consider the same Island Video Club example involving 100 club members: y Step 1: Sub-divide the club members into 5 clusters, each cluster containing 20 members.

Cluster No. 1 2 3 4 5 English 00, 22, 40, 64, 82 01, 24, 43, 67, 85 03, 26, 45, 69, 86 04, 29, 48, 70, 89 05, 30, 49, 71, 91 08, 31, 50, 73, 93 09, 32, 54, 75, 94 11, 34, 55, 76, 96 14, 36, 57, 79, 97 16, 37, 63, 81, 99 Mandarin 06, 35, 66 07, 44, 68 10, 47, 72 13, 51, 77 15, 53, 78 19, 56, 80 20, 58, 83 25, 59, 87 27, 61, 92 33, 62, 98 Others 02, 42 12, 46 17, 52 18, 60 21, 65 23, 74 28, 84 38, 88 39, 90 41, 95

y Step 2: Select one of the 5 clusters. If cluster 4 is selected, then all its elements (i.e. Club Members with numbers 09, 11, 32, 34, 54, 55, 75, 76, 94, 96, 20, 25, 58, 59, 83, 87, 28, 38, 84, 88) are selected. y Step 3: If a two-stage cluster sampling is desired, the researcher may randomly select 4 members from each of the five clusters. In this case, the sample will be different from that shown in step 2 above.

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Stratified Sampling Cluster Sampling 1. The target population is sub-divided 1. The target population is subinto a few subgroups or strata, each divided into a large number of containing a large number of elements. sub-population or clusters, each containing a few elements. 2. Within each stratum, the elements are 2. Within each cluster, the elements are heterogeneous. Between homogeneous. However, high degree of clusters, there is a high degree of heterogeneity exists between strata. homogeneity. 3. A sample element is selected each time. 3. A cluster is selected each time. 4. Less sampling error. 4. More prone to sampling error. 5. Objective is to increase precision. 5. Objective is to increase sampling efficiency by decreasing cost.

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AREA SAMPLING

y A common form of cluster sampling where clusters consist of geographic areas, such as districts, housing blocks or townships. Area sampling could be one-stage, two-stage, or multi-stage.

How to Take an Area Sample Using Subdivisions Your company wants to conduct a survey on the expected patronage of its new outlet in a new housing estate. The company wants to use area sampling to select the sample households to be interviewed. The sample may be drawn in the manner outlined below. ___________________________________________________________________________________ Step 1: Determine the geographic area to be surveyed, and identify its subdivisions. Each subdivision cluster should be highly similar to all others. For example, choose ten housing blocks within 2 kilometers of the proposed site [say, Model Town ] for your new retail outlet; assign each a number. Step 2: Decide on the use of one-step or two-step cluster sampling. Assume that you decide to use a two-stage cluster sampling. Step 3: Using random numbers, select the housing blocks to be sampled. Here, you select 4 blocks randomly, say numbers #102, #104, #106, and #108. Step 4: Using some probability method of sample selection, select the households in each of the chosen housing block to be included in the sample. Identify a random starting point (say, apartment no. 103), instruct field workers to drop off the survey at every fifth house (systematic sampling).

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NonNon-probability samples

Convenience sampling

Drawn at the convenience of the researcher. Common in exploratory research. Does not lead to any conclusion.

Judgmental sampling

Sampling based on some judgment, gut-feelings or experience of the researcher. Common in commercial marketing research projects. If inference drawing is not necessary, these samples are quite useful.

Quota sampling

An extension of judgmental sampling. It is something like a two-stage judgmental sampling. Quite difficult to draw.

Snowball sampling

Used in studies involving respondents who are rare to find. To start with, the researcher compiles a short list of sample units from various sources. Each of these respondents are contacted to provide names of other probable respondents.

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Quota Sampling

y To select a quota sample comprising 3000 persons in country X using three control characteristics: sex, age and level of education. y Here, the three control characteristics are considered independently of one another. In order to calculate the desired number of sample elements possessing the various attributes of the specified control characteristics, the distribution pattern of the general population in country X in terms of each control characteristics is examined.

Control Characteristics Gender: .... ................. Age: ......... ................. ................. Population Male...................... Female .................. 20-29 years ........... 30-39 years ........... 40 years & over .... Distribution 50.7% 49.3% 13.4% 53.3% 33.3% Male Female 20-29 years 30-39 years 40 years & over Sample Elements 3000 x 50.7% = 1521 3000 x 49.3% = 1479 3000 x 13.4% = 402 3000 x 52.3% = 1569 3000 x 34.3% = 1029 .

Religion: .. Christianity ........... 76.4% Christianity 3000 x 76.4% = 2292 ................. Islam ..................... 14.8% Islam 3000 x 14.8% = 444 ................. Hinduism .............. 6.6% Hinduism 3000 x 6.6% = 198 ................. Others ................... 2.2% Others 3000 x 2.2% = 66 _________________________________________________________________________________ _

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Very small sample Size sample Larger sample size sample Still larger sample Complete census

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Conclusive Larger sampling errors

Evaluation Criteria Nature of research Relative magnitude sampling vs. non-sampling error Population variability Statistical Considerations Sophistication Needed Time Budget Needed

Non-probability sampling

Exploratory Larger non-sampling error

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Sampling Examples I

Topic: A Comparative empirical study between Public & Private life insurance companies Population: Public & Private life insurance holders Sample: Sample of 100 selected using Judgment & convenient method where 76 belongs to LIC and 24 Private sector

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Example II

Topic: Challenges faced by working women in Bangladesh A Study on Khulna City Population: Working women in Khulna City (Public & Pvt sector banks, Insurance, MNCs, NGOs, Govt Organizations) Sampling Method: Stratified Random Sample ( Proportional allocation)

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Banks 40

Govt Org 10

NGOs 15

MNCS 15

Others 20

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Example III

Topic: Performance Management in Retail Sector in India An Empirical Study Population: Employees of Retail Industry of Indore city Source List: Big Bazaar, Pantaloons, Reliance Fresh, West side, Treasure Island Sample Size: 104 front line employees are selected using Simple Random Sample

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Example IV

Topic: Effect of e-CRM on Business Opportunities: A Study with reference to small and medium scale Enterprises in India Population: Consumers of SME Location: Bangalore ( Major SME Locations identified and from each location one SME is considered for the study. Homogeneity in size, structure, other demographic & organizational factors are considered in selection)

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Further Criterion; SMEs must posses a web site and a valid email Id, because, this is minimum technological infrastructure to implement e-CRM. Sample Size: From each SME 10 consumers are selected at random. Total size: 10 * 10 = 100

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Example V

Topic: The Production & Labour problems of small scale Entrepreneurs Location: Madurai Region of Tamil Nadu Source: Tamil Nadu Small Industries Development Corporation (TNSIDCO) Manual & Web site Sample: Divided Madurai region into 5 Industrial estates. Stratified Random Sampling (Proportional allocation) method is followed in selecting sample.

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Region Population Kappalur 169 Andipatti 05 Theni 37 Pudur 74 Uranganpatti 147 Total 432

Sample 56 02 12 25 49 144

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