CHAPTER ONE

1. Sampling and Sampling Distribution

Introduction
Given a variable X, if we arrange its values in ascending order and assign probability to each
of the values or if we present Xi in a form of relative frequency distribution the result is called
Sampling Distribution of X.
Definitions:
1. Parameter: Characteristic or measure obtained from a population.
2. Statistic: Characteristic or measure obtained from a sample.
3. Sampling: The process or method of sample selection from the population.
4. Sampling unit: the ultimate unit to be sampled or elements of the population to be
sampled.
Examples:
- If some body studies Scio-economic status of the households, households are the
sampling unit.
- If one studies performance of freshman students in some college, the student is the
sampling unit.
5. Sampling frame: is the list of all elements in a population.
Examples:
- List of households.
- List of students in the registrar office.
6. Errors in sample survey:
There are two types of errors
a) Sampling error:
- Is the discrepancy between the population value and sample value.
- May arise due to in appropriate sampling techniques applied
b) Non sampling errors: are errors due to procedure bias such as:
- Due to incorrect responses
- Measurement
- Errors at different stages in processing the data.
The Need for Sampling
- Reduced cost
- Greater speed
- Greater accuracy
- Greater scope
- More detailed information can be obtained
- There are two types of sampling.
1. Random Sampling or probability sampling.
- Is a method of sampling in which all elements in the population have a pre-assigned non-
zero probability to be included in to the sample.
Examples:
 Simple random sampling
 Stratified random sampling
 Cluster sampling

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  Systematic sampling
1. Simple Random Sampling:
- Is a method of selecting items from a population such that every possible sample of
specific size has an equal chance of being selected. In this case, sampling may be with
or without replacement. Or
- All elements in the population have the same pre-assigned non-zero probability to be
included in to the sample.
- Simple random sampling can be done either using the lottery method or table of
random numbers.
2. Stratified Random Sampling:
- The population will be divided in to non-overlapping but exhaustive groups called
strata.
- Simple random samples will be chosen from each stratum.
- Elements in the same strata should be more or less homogeneous while different in
different strata.
- It is applied if the population is heterogeneous.
- Some of the criteria for dividing a population into strata are: Sex (male, female); Age
(under 18, 18 to 28, 29 to 39); Occupation (blue-collar, professional, other).
3. Cluster Sampling:
- The population is divided in to non-overlapping groups called clusters.
- A simple random sample of groups or cluster of elements is chosen and all the
sampling units in the selected clusters will be surveyed.
- Clusters are formed in a way that elements with in a cluster are heterogeneous, i.e.
observations in each cluster should be more or less dissimilar.
- Cluster sampling is useful when it is difficult or costly to generate a simple random
sample. For example, to estimate the average annual household income in a large city
we use cluster sampling, because to use simple random sampling we need a complete
list of households in the city from which to sample. To use stratified random sampling,
we would again need the list of households. A less expensive way is to let each block
within the city represent a cluster. A sample of clusters could then be randomly
selected, and every household within these clusters could be interviewed to find the
average annual household income.
4. Systematic Sampling:
- A complete list of all elements with in the population (sampling frame) is required.
- The procedure starts in determining the first element to be included in the sample.
- Then the technique is to take the kth item from the sampling frame.
- Let

- Chose any number between 1 and . Suppose it is ( .

- The unit is selected at first and then until the required
sample size is reached.
2. Non Random Sampling or non-probability sampling.

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 - It is a sampling technique in which the choice of individuals for a sample depends on the
basis of convenience, personal choice or interest.
Examples:
 Judgment sampling.
 Convenience sampling
 Quota Sampling.
1. Judgment Sampling
- In this case, the person taking the sample has direct or indirect control over which
items are selected for the sample.
2. Convenience Sampling
- In this method, the decision maker selects a sample from the population in a manner
that is relatively easy and convenient.

3. Quota Sampling
- In this method, the decision maker requires the sample to contain a certain number of
items with a given characteristic. Many political polls are, in part, quota sampling.

Note:

1. Suppose simple random sampling is used

 We have possible samples if sampling is with replacement.
 We have possible samples if sampling is with out replacement.
2. After this on wards we consider that samples are drawn from a given population
using simple random sampling.

Sampling Distribution of the sample mean

- Sampling distribution of the sample mean is a theoretical probability distribution that

shows the functional relation ship between the possible values of a given sample mean
based on samples of size and the probability associated with each value, for all possible
samples of size drawn from that particular population.
- There are commonly three properties of interest of a given sampling distribution.
 Its Mean
 Its Variance
 Its Functional form.

Steps for the construction of Sampling Distribution of the mean

1. From a finite population of size , randomly draw all possible samples of size .
2. Calculate the mean for each sample.
3. Summarize the mean obtained in step 2 in terms of frequency distribution or relative
frequency distribution.

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Example:
Suppose we have a population of size , consisting of the age of five children: 6, 8, 10,
12, and 14

Take samples of size 2 with replacement and construct sampling distribution of the sample
mean.

Solution:

 We have possible samples since sampling is with replacement.

Step 1: Draw all possible samples:

6 8 10 12 14
6 (6, 6) (6, 8) (6, 10) (6, 12) (6, 14)
8 (8,6) (8,8) (8,10) (8,12) (8,14)
10 (10,6) (10,8) (10,10) (10,12) (10,14)
12 (12,6) (12,8) (12,10) (12,12) (12,14)
14 (14,6) (14,8) (12,10) (12,12) (12,14)
Step 2: Calculate the mean for each sample:

6 8 10 12 14
6 6 7 8 9 10
8 7 8 9 10 11
10 8 9 10 11 12
12 9 10 11 12 13
14 10 11 12 13 14

Step 3: Summarize the mean obtained in step 2 in terms of frequency distribution.

6 1
7 2
8 3
9 4
10 5
11 4
12 3
13 2
a) Find the mean of say
14 1

b) Find the variance of , say

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 Remark:
1. In general if sampling is with replacement

2. If sampling is with out replacement

3. In any case the sample mean is unbiased estimator of the population mean.i.e
(Show!)

- Sampling may be from a normally distributed population or from a non normally

distributed population.
- When sampling is from a normally distributed population, the distribution of will
posses the following property.

1. The distribution of will be normal

2. The mean of is equal to the population mean , i.e.
3. The variance of is equal to the population variance divided by the sample size, i.e.

Central Limit Theorem

Given a population of any functional form with mean and finite variance , the sampling
distribution of , computed from samples of size from the population will be approximately
normally distributed with mean and variance , when the sample size is large.

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