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Statistics for ManagersUsing Microsoft? Excel 5th Edition Chapter 7 Sampling and Sampling Distributions Learning Objectives In this chapter, you will learn: To distinguish between different survey sampling methods The concept of the sampling distribution To compute probabilities related to the sample mean and the sample proportion The importance of the Central Limit Theorem Why Sample? Selecting a sample is less time-consuming than selecting every item in the population (census). Selecting a sample is less costly than selecting every item in the population. An analysis of a sample is less cumbersome and more practical than an analysis of the entire population. Types of Samples Types of Samples In a nonprobability sample, items included are chosen without regard to their probability of occurrence. In convenience sampling, items are selected based only on the fact that they are easy, inexpensive, or convenient to sample. In a judgment sample, you get the opinions of pre-selected experts in the subject matter. Types of Samples In a probability sample, items in the sample are chosen on the basis of known probabilities. Simple Random Sampling Every individual or item from the frame has an equal chance of being selected Selection may be with replacement (selected individual is returned to frame for possible reselection) or without replacement (selected individual isn’t returned to the frame). Samples obtained from table of random numbers or computer random number generators. Systematic Sampling Decide on sample size: n Divide frame of N individuals into groups of k individuals: k=N/n Randomly select one individual from the 1st group Select every kth individual thereafter Stratified Sampling Divide population into two or more subgroups (called strata) according to some common characteristic. A simple random sample is selected from each subgroup, with sample sizes proportional to strata sizes. Samples from subgroups are combined into one. This is a common technique whe
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