ASSIGNMENT-2

(Apex Institute of Technology,

Management)

Subject: Statistical Analysis for Business Decisions

Subject code: 23BBT-601

Submitted By: Submitted To:

Name: ANANT KUMAR TYAGI Prof. Jasbir Kaur

UID: 23MBA20171

Branch/Sec: 23MBM-103
Assignment –2

(1).

Probability sampling and non-probability sampling are two distinct methods used in statistics

to select a sample from a population. These methods differ in their approach to ensuring that

each element in the population has a known and non-zero chance of being included in the

sample.

Probability Sampling:

Definition: Probability sampling involves random selection, where each element in the

population has a known and equal chance of being chosen for the sample.

Methods:

Simple Random Sampling: Every individual in the population has an equal chance of being

selected.

Stratified Random Sampling: The population is divided into subgroups (strata), and random

samples are taken from each stratum.

Systematic Sampling: Every kth element is selected from a list after a random start.
Cluster Sampling: The population is divided into clusters, and random clusters are selected

for the sample.

Advantages:

Results in a representative sample.

Statistical inferences can be made about the population based on the sample.

Disadvantages:

Requires a complete list of the population.

Can be more time-consuming and expensive.

Non-Probability Sampling:

Definition: Non-probability sampling does not rely on random selection, and not every

element in the population has a known chance of being included in the sample.

Methods:

Convenience Sampling: Selecting individuals who are easiest to reach or most convenient.
Purposive (Judgmental) Sampling: Handpicking individuals based on specific characteristics

relevant to the study.

Snowball Sampling: Initial participants refer others to participate.

Quota Sampling: Selecting a predetermined number of individuals from different subgroups.

Advantages:

Quick and inexpensive.

Useful when it's challenging to create a complete list of the population.

Disadvantages:

Results may not be representative of the population.

Generalizability to the larger population may be limited.

Summary:

Probability sampling aims to ensure a random and representative sample from the

population, allowing for generalizability and statistical inference. Non-probability sampling,

on the other hand, is more flexible and convenient but may result in a sample that is not truly

representative of the population, limiting the ability to make broader statistical inferences.

The choice between these methods depends on the research goals, available resources, and

the nature of the population being studied.

(2).

(a) Simple Random Sampling (SRS):- is a probability sampling method where each member

of the population has an equal chance of being selected, and the selection of one member

does not influence the selection of another. This method ensures that the sample is

representative of the entire population.

Here's how simple random sampling works, along with examples:

Procedure:

Define the Population:

Clearly define the population of interest. This could be a list of individuals, items, or events

that share common characteristics.

List the Population:

Create a complete and exhaustive list of all the elements in the population. Each element

should be uniquely identified.

Randomly Select Samples:

Use a randomization technique to select samples from the list. This could involve using

random number generators, drawing names from a hat, or employing a random sampling

software.

Ensure Independence:

Ensure that the selection of one element does not influence the selection of another. Each

element should have an equal and independent chance of being chosen.

Example:

Let's say you want to conduct a simple random sample of students in a school with 500

students. Here's how you might do it:

Define the Population:

The population is all students in the school.

List the Population:

Create a list of all 500 students, assigning a unique identifier to each (e.g., Student ID

numbers).

Randomly Select Samples:

Use a random number generator or a random selection method to pick, for example, 50

student IDs from the list.

Ensure Independence:

Make sure that the selection of one student does not affect the selection of another. Each

student should have an equal chance of being chosen.

In this example, every student in the school has an equal chance of being selected, and the

resulting sample is representative of the entire student population.

(b) Stratified Random Sampling:

Definition:

Stratified random sampling is a probability sampling method in which a population is divided

into distinct subgroups or strata, and then random samples are taken independently from

each stratum. The goal is to ensure that each subgroup is adequately represented in the final
sample, allowing for more precise analysis within each stratum.

Steps in Stratified Random Sampling:

Identify Strata:

Divide the population into mutually exclusive and exhaustive strata based on relevant

characteristics. These characteristics should be relevant to the research question.

Determine Sample Size:

Decide the proportion of the sample that should be allocated to each stratum. This can be

based on the relative size or importance of each stratum in the population.

Random Sampling Within Strata:

Use a random sampling method (e.g., simple random sampling) to select samples

independently from each stratum.

Example:
Let's consider a university with a diverse student population, and we want to ensure our

sample represents different academic majors proportionally.

Population:

Business majors

Engineering majors

Arts majors

Science majors

Steps:

Identify Strata:

Divide the student population into four strata based on academic majors.

Determine Sample Size:

Suppose we decide to take a sample of 100 students, with proportional representation from

each stratum: 25 from Business, 25 from Engineering, 25 from Arts, and 25 from science.
Random Sampling Within Strata:

Use a random sampling method within each stratum to select the specified number of

students. For example, within the Business stratum, they conduct simple random sampling to

select 25 students majoring in Business.

Advantages of Stratified Random Sampling:

Ensures representation from all relevant subgroups in the population.

Provides more precise estimates for each stratum, allowing for detailed subgroup analysis.

Disadvantages:

Requires information about the population to create strata.

Can be more complex and time-consuming compared to simple random sampling.

Stratified random sampling is valuable when there is significant variability within the

population, and researchers want to ensure that all important subgroups are adequately

represented in the sample for more accurate analysis and generalization.

(3).

(a) Judgmental (Purposive) Sampling:

Definition:

Judgmental sampling, also known as purposive or subjective sampling, is a non-probability

sampling method in which the researcher uses their judgment to select participants based on

specific criteria. Unlike probability sampling methods, judgmental sampling does not rely on

random selection, and the choice of participants is subjective and based on the researcher's

expertise or knowledge of the population.

Steps in Judgmental Sampling:

Define Criteria:

Clearly specify the criteria for selecting participants. This could be based on characteristics

relevant to the research question, expertise, or the researcher's judgment.

Identify and Select Participants:

Use personal judgment to select participants who meet the defined criteria. This involves the

researcher actively choosing individuals or cases based on their knowledge or assumptions.

Example:
Suppose a researcher is conducting a study on the experiences of successful entrepreneurs in

a particular industry. In this case, the researcher might use judgmental sampling to select

participants with specific characteristics, such as:

Entrepreneurs who have successfully launched and sustained a business in the industry of

interest.

Entrepreneurs with a minimum of 10 years of experience in the field.

Entrepreneurs who have received recognition or awards for their contributions to the

industry.

The researcher, based on their judgment, would then identify and select participants who

meet these criteria for in-depth interviews or case studies.

Advantages of Judgmental Sampling:

Quick and convenient.

Useful when the researcher has specific criteria in mind and wants to focus on particular

characteristics or cases.

Appropriate when the population is not well-defined or hard to reach through random
methods.

Disadvantages:

Results may lack generalizability to the broader population.

Subjectivity in the selection process may introduce bias.

It relies heavily on the researcher's expertise and may not be transparent or reproducible.

Judgmental sampling is appropriate in situations where the researcher has a deep

understanding of the population and wants to select participants who possess specific

characteristics or experiences relevant to the research objectives. However, caution should

be exercised to acknowledge and address potential biases introduced by the subjective

nature of this sampling method.

(b) Convenience Sampling:

Definition:

Convenience sampling is a non-probability sampling method where the researcher selects

individuals who are easiest to reach or most readily available for inclusion in the sample.

Unlike probability sampling methods, convenience sampling does not ensure that every

individual in the population has an equal chance of being included.

Steps in Convenience Sampling:

Identify Available Participants:

Researchers choose participants based on their convenience and accessibility.

Data Collection:

Collect data from the selected participants who are easily accessible or willing to participate.

Analysis:

Analyze the collected data, recognizing that the sample may not be representative of the

entire population.

Example:

Suppose a researcher wants to conduct a study on smartphone usage habits among college

students. Instead of using a more systematic approach, the researcher stands in a central

location on campus and asks passing students to participate in the study.

Advantages of Convenience Sampling:

Quick and easy to implement.

Cost-effective and requires fewer resources.

Useful for exploratory studies or when it's challenging to access a broader population.

Disadvantages:

Lack of representativeness: Results may not be generalizable to the entire population.

Sampling bias: The sample may overrepresent certain groups and underrepresent others.

Limited external validity: Findings may not be applicable beyond the sample.

Considerations:

Convenience sampling is often used in pilot studies, initial exploratory research, or situations

where time and resources are limited. While it may provide useful insights into a specific

group of individuals, researchers should be cautious when generalizing findings to a broader

population, as the non-random nature of the sample introduces the risk of bias.

(c) Quota Sampling:

Definition:

Quota sampling is a non-probability sampling method in which the researcher selects

participants based on pre-defined quotas regarding certain characteristics. The goal is to

ensure that the sample reflects the known distribution of these characteristics in the

population, even though the selection of individuals within each quota is non-random.

Steps in Quota Sampling:

Identify Quotas:

Determine the key characteristics or demographics that are relevant to the study and for

which quotas will be established.

Set Quotas:

Define the desired proportions or quotas for each characteristic based on their prevalence in

the population.

Select Participants:

Non-randomly select participants who meet the criteria outlined in the quotas until each

quota is filled.

Example:
Suppose you are conducting a study on smartphone usage in a city with a known

demographic distribution in terms of age and income. You want your sample to mirror these

demographics.

Population:

Age groups: 18-24, 25-34, 35-44, 45-54, 55+

Income levels: Low, Medium, High

Steps:

Identify Quotas:

Age groups and income levels are chosen as key characteristics.

Set Quotas:

You decide to set quotas such that your sample includes participants in each age group and

income level proportionally to their representation in the city's population.

Select Participants:

Non-randomly select individuals who fit into each quota until the desired number is reached.

For example, if the city's population has 20% of people aged 18-24, your sample would also

have 20% of participants in that age group.

Advantages of Quota Sampling:

Quick and convenient, as it doesn't require a complete list of the population.

Allows for control over the composition of the sample based on specific characteristics.

Disadvantages:

Non-random selection may introduce bias.

Limited generalizability if the chosen quotas do not accurately represent the population.

Quota sampling is often used in market research, public opinion polling, and other situations

where the researcher wants to ensure that the sample reflects certain demographic

characteristics without going through the complexity and expense of a probability sampling

method.

(d) Snowball Sampling:

Definition:

Snowball sampling is a non-probability sampling method in which existing study participants

recruit future participants from among their acquaintances or social network. This method is

often used when it is difficult to identify and access participants directly, especially in

situations where the population is hidden, hard to reach, or not well-defined.

Steps in Snowball Sampling:

Identify Initial Participants:

Begin with a small number of participants who meet the criteria for inclusion in the study.

Recruitment by Initial Participants:

Ask the initial participants to refer others who might also meet the criteria or be interested in

participating.

Continued Recruitment:

The process continues, and each new participant is asked to refer additional participants.
Sampling Until Saturation:

Continue the process until the sample size is reached or until data saturation is achieved (no

new information or participants are identified).

Example:

Imagine you are conducting research on a stigmatized or sensitive topic, such as drug

addiction, where individuals may be hesitant to come forward. In such a case, you might use

snowball sampling.

Steps:

Identify Initial Participants:

Begin with a few individuals who have experienced drug addiction and are willing to

participate in the study.

Recruitment by Initial Participants:

These initial participants are then asked to refer others they know who have similar

experiences or perspectives.

Continued Recruitment:

The newly recruited participants are then asked to refer additional individuals with relevant

experiences.

Sampling Until Saturation:

The process continues until you reach your desired sample size or until additional participants

no longer provide new insights.

Advantages of Snowball Sampling:

Useful when the population is hard to reach or hidden.

Cost-effective and can be efficient in certain situations.

Disadvantages:

Not representative of the entire population since participants are not randomly selected.

Potential for bias as participants are likely to refer others with similar characteristics or

experiences.
Considerations:

Researchers should be aware of the limitations and potential biases introduced by this

method.

Snowball sampling is often more exploratory in nature and may not be suitable for studies

requiring a representative sample.