BUSINESS

STATISTICS
Lecture 2
 METHODS OF
SAMPLING
SAMPLE – is a portion/part or subgroup of the
population/universe

TWO MAIN SAMPLING TECHNIQUES

•RANDOM SAMPLING
•NON-RANDOM SAMPLING
RANDOM SAMPLING
 is the most commonly used sampling technique in
which each member of the population is given an
equal chance of being selected in the sample.

PROPERTIES OF RANDOM SAMPLING

1. EQUIPROBABILITY – means that each member of

the population has an equal chance of being
selected and included in the sample.

2. INDEPENDENCE – means that the chance of one

member of being drawn does not affect the chance
of the other member.
 TWO KINDS OF RANDOM SAMPLING
1. RESTRICTED RANDOM SAMPLING
- involves certain restrictions intended to
improve the validity of the sample
- this design is applicable only when the
population being investigated requires homogeneity.
Example: A study on the effectiveness of a new
drug can be tested to two groups of the animals,
the controlled and experimental groups. Those
animals that belong to the controlled group will
not be treated with a new drug while those that
belong to the experimental group will be treated
with new drug. The selection of a sample of
paired animals should be with restrictions
according to their degree of illnesses so that the
significant difference between the two groups
will be accepted.
2. UNRESTRICTED RANDOM SAMPLING
- is considered the best random
sampling design because there were
no restrictions imposed and every
member in the population has an
equal chance of being included in
the sample.
 “SAMPLING TECHNIQUES”

A. RANDOM SAMPLING
1. LOTTERRY OR FISHBOWL SAMPLING
- this is done by simply writing the
names or numbers of all the members
of the population in small rolled pieces
of paper which are later placed in a
container. The researcher shakes the
container thoroughly then draws “n”
out of “N” pieces of papers as desired
for a sample. This is usually done in a
lottery.
 2. SAMPLING WITH THE USE OF TABLE OF
RANDOM NUMBERS

- if the population is large, a more practical

procedure is the use of Table of Random
numbers which contains rows and columns of
digits randomly ordered by a computer.
A sample of size “n” can be
generated by beginning at an arbitrary point
in Table of Random Numbers, closing your
eyes and haphazardly pointing at an entry in
the Table. Then the proceed in any direction,
vertically, horizontally, or diagonally until “n”
distinct numbers could represent the
numerically coded elements in the
3. SYSTEMATIC SAMPLING
- is done by taking every kth element in the
population. It implies to a group of individuals
arranged in a waiting line or in a methodical
manner.
For instance, the objective is to get the
opinion of employees regarding employee-
management relations, a sample of size “n” will be
selected from the list of employees arranged
alphabetically or according to age, experience,
position or academic rank.
by systematic sampling, every kth
employee from the listed order will be included in a
sample. if “N” is known, k value can be calculated
as

k = N/n where N is the population

4. STRATIFIED RANDOM SAMPLING

- this is when the population can be partitioned

into several strata or subgroups, it may be wiser to
employ the stratified technique to ensure a
representative of each group in the sample
Random samples will be selected from each
stratum. Selecting of a sample with this technique is
quite difficult and costly since it requires a complete
listing, called frame, of all elements in the
population.

Two kinds of stratified random

sampling
Stratified
Simple Stratified
Proportional
Random
Random
Sampling
Sampling
4.1 SIMPLE STRATIFIED RANDOM
SAMPLING
- when the population is grouped into more
or less homogeneous classes, that is, different
groups but with a relatively common
characteristics, then each can be sampled
independently by taking equal number of elements
from each stratum.

Example: Students taking history subjects of N= 800

TABLE 1
POPULATION SAMPLE
Fourth year 185 50
Third year 200 50
Second year 215 50
First year 200 50
TOTAL 800 200
 4.2 STRATIFIED PROPORTIONAL
RANDOM SAMPLING
- in some cases, the characteristic of the
population is such that the proportions of the
subgroups are grossly equal. The researcher may
wish to maintain these characteristics in the sample
with the use of the stratified proportion technique.
TABLE 2

POPULATION PROPORTION SAMPLE

Fourth year 120 15 30

Third year 200 25 50

Second year 220 27.5 55

First year 260 32.5 65

TOTAL 800 100 200

 5. MULTI-STAGE OR MULTIPLE
SAMPLING
- this technique uses several
stages or phases in getting sample
from the population. however,
selection of the sample is still done
at random. This method is an
extension or a multiple of the
stratified random sampling
technique. The number of stages
depends on the number of the
population and the sample size
 B. NON- RANDOM SAMPLING
TECHNIQUE

1. JUDGMENT or PURPOSIVE SAMPLING

- non-random or non-probability sampling
- it plays a major role in the selection of a
particular item and/or in making decisions in
cases of incomplete responses or observation.
This is usually based on a criteria laid down by
the researcher or his adviser.
2. QUOTA SAMPLING

- this is a relatively quick and

inexpensive method to operate since
the choice of the number of person or
elements to be included in a sample is
done at the researcher's own
convenience or preference and is not
preference and is not predetermined
by some carefully operated
randomizing plan.
3. CLUSTER SAMPLING
- sometimes referred to as an area
sampling because it is usually applied on a
geographical basis. The population is
grouped into cluster or small units, e.g.,
blocks or districts, in city or municipality.
area sampling usually requires larger
elementary units than those required in
simple random sampling. It is not a
common practice, however, that every
individual located in selected area is
interviewed. Often additional sampling
stages are introduced.
4. INCIDENTAL SAMPLING
- this design is applied to those
samples which are taken because they
are the most available. In an interview,
for instance, an interviewer can simply
choose to ask those people around him
or in a coffee shop where he is taking
a break.
5. CONVENIENCE SAMPLING

- this method has been widely used

in televisions and radio programs to find
out opinions of TV viewers and listeners
regarding a controversial issues. While
the issue is being discussed in a talk
show, the hosts will immediately get
responses and comments from those
who will call their telephone operators.
This method, of course, is bias against
those without telephones in their houses.
SAMPLE TECHNIQUES

B. Non-random
A. RANDOM SAMPLING TECHNIQUES
Sampling Techniques
1. Lottery or Fishbowl 1. Judgment or
sampling Purposive Sampling
2. Sampling with the
use of Table of 2. Quota Sampling
Random Numbers
3. Systematic
3. Cluster Sampling
Sampling
4. Stratified Random a. Simple Stratified 4. Incidental
Sampling Random Sampling Sampling
b. Stratified
5. Convenience
Proportional Random
Sampling
Sampling
5. Multi-stage or
Multiple Sampling
DETERMINING THE SAMPLE
SIZE
- in determining the size of the sample “n” for
a specific population “N”, we use the SLOVEN’S
Formula:

n = N/(1 + Ne²)

Note: This margin of error, e, could range between

1% and 10% depending on the desire or intention
of the researcher. However, the researcher, should
be aware of the Law of Large Numbers which
states, “The larger the size of the sample, the
more certain we can be sure that the sample
mean will be good estimate of the population
mean.” The larger the size of the sample, the
closer its characteristics would be to the
 SOURCES OF DATA

TWO SOURCES OF DATA

1. Primarysource
2. Secondary source
PRIMARY SOURCE
- which a first-hand information is
obtained usually by means of personal
interview and actual observation

SECONDARY SOURCE
- information is taken from other’s
works, new reports, readings, and those that
are kept by National Statistics Office,
Securities and Exchange Commissions, SSS,
and other government and private agencies
 Data are said to be an asset of a
company if they are accurate,
updated, and available when
needed. Hence, any institution or
business organization must have a
database called Management
Information System where all
information about their business are
made available in order to facilitate
verification of claims and to come up
with wise management decisions.
 METHODS OF COLLECTING DATA:
ITS ADVANTAGES AND
DISADVANTAGES
1. DIRECT or INTERVIEW METHOD
- is a person-to-person interaction between
an interviewer and interviewee. Tape
recorded or written interviews will help the
researcher obtain exact information from
the interviewee.
ADVANTAGES DISADVANTAGES

Precise and consistent It is time, money,

answers can be and effort consuming
obtained by modifying and it will be
or rephrasing the applicable only for
questions especially to small population,
illiterate respondents or
except when
to children under study
conducting a census.
2. INDIRECT or QUESTIONNAIRE METHOD
- is an alternative method for the interview method.
Written responses are obtained by disturbing
questionnaires (a list of questions intended to
elicit answers to a given problem, must be given
in a logical order and not too personal) to the
respondents through mail or hand-carry
ADVANTAGES DISADVANTAGES

Lesser time, money, Many responses may not

and efforts are be consistent due to the
poor construction of the
consumed. questionnaire. The meaning
of the questions may be
different from each
respondent. Inconsistent
responses can no longer
modified, thus, it reduces
valid number of
respondents.
3. REGISTRATION METHOD
- is enforced by private organizations or
government agencies for recording purposes

ADVANTAGES DISADVANTAGES

Organized data Problems arises only

from an institution can when an agency
serve as ready doesn’t have a
references for future Management
study or for personal Information System
claims of people’s and if the system or
records. process of registration
is not implemented
well.
4. OBSERVATION METHOD
- is a scientific method of investigation that
makes possible use of all senses to measure or
obtain outcomes/responses from the object of
study.
ADVANTAGES DISADVANTAGES

Observation method is Subjectivity of

usually applied to information sought
respondents that cannot cannot be avoided.
be asked or need not
speak, especially when
behaviors of persons/
culture of organization/
performance outcomes
of employees/ students
are to be considered.
5. EXPERIMENTATION
- is used when the objective is to determine the
cause-and-effect of a certain phenomenon under
some controlled conditions.

ADVANTAGES DISADVANTAGES

• There is objectivity of •It’s to difficult to find

information since a respondents with almost
scientific method of similar characteristics.
inquiry is used. •The whole method must
•An equal number of be repeated if the desired
respondents with outcome is not reached.
relatively similar
characteristics are being
examined to obtained the
different effects of
something applied to the
experimental group.
NOTE:
Data that are collected by these
methods are usually referred to as raw
data. Responses out from taped
interviews, answered questionnaires,
furnished registration forms, recorder
observations and results of an
experiment are considered raw data
since they are not yet organized and
presented in a form ready for
interpretation. These data can only be
understood if appropriate forms of
presentation are adopted.
 ORGANIZATION AND
PRESENTATION OF DATA

FORMS OF PRESENATION OF DATA

TEXTUAL

TABULAR

GRAPHICAL
1. TEXTUAL PRESENTATION
this form of presentation combines text
and numerical facts in a statistical report

2. TABULAR PRESENTATION
- this form of presentation is better
than textual form because it provides
numerical facts in a more concise and
systematic manner.
- statistical tables are constructed to
facilitate the analysis of relationships
- each class/subclass is assigned to a
particular row or column and figures for
various classifications are noted in
 ADVANTAGES OF TABULAR
PRESENTATION
1. It is brief; it reduces the matter to the
minimum.
2. It provides the reader a good grasp of the
meaning of the quantitative relationship
indicated in the report.
3. It tells the whole story without the necessity
of mixing textual matter with figures.
4. The systematic arrangement of columns
and rows makes them easily read and
readily understood.
5. The column and rows make comparison
easier.
3. GRAPHICAL PRESENTATION
- this form is the most effective means of
organizing and presenting statistical data because
the important relationship are brought out more
clearly and creatively in virtual solid and colorful
figures.
DIFFERENT KINDS OF GRAOHS/CHARTS

PICTURE GRAPH OR
LINE GRAPH
PICTOGRAM

BAR GRAPH MAP GRAPH OR

CARTOGRAM

CIRCLE GRAPH OR SCATTER POINT

PIE CHART DIAGRAM
1. LINE GRAPH
- it shows relationships between
two sets of quantities
- this is done by plotting point of X
set of quantities along the horizontal axis
against the Y set of quantities along the
vertical axis in a Cartesian coordinate
plane
- those plotted points will be
connected by a line segment which
finally forms the line graph
- it is often use to predict growth
trends for a longer period of time
2. BAR GRAPH OR HISTOGRAM
- it consists of bars or rectangles of equal
widths, either drawn vertically or horizontally,
segmented or non-segmented
- is done by drawing rectangles with
length proportional to the frequencies of
observed items or magnitude of classes under
study
- two or more kinds of information can be
compared by showing them in multiple bar
graphs, each of which is shaded with different
colors to give distinctions of each
- in some cases, bars can be shown in
opposite directions above and below a zero line
to illustrate profits/earnings (positive) and
3. CIRCLE GRAPH OR PIE CHART
- it represents relationships of the
different components of a single total as
revealed in the sectors of a circle
- the angles or size of the sectors
should be proportional to the percentage
components of the data which give a
total of 100%
- colors, legends, and cross
hatching will be useful in identifying
each components
4. PICTURE GRAPH OR PICTOGRAM
- it is a visual presentation of
statistical quantities by means of
drawing pictures or symbols related to
the subject under the study
- sizes and magnitudes drawn
pictures should be clear enough to
depict differences
- legends are sometimes used to
represent magnitude of a single unit of
the picture then repetitions of this
picture are drawn to indicate differences
in quantity
5. MAP GRAPH OR CARTOGRAM
- it is one of the best ways to
present geographical data
- this kind of graph is always
accompanied by a legend which
tells us the meaning of the lines,
colors or other symbols used and
positioned in a map
6. SCATTER POINT DIAGRAM
- it is a graphical device to show the
relationship between two quantitative
variables
- unlike the line graph, the plotted
points for every pair of X and Y set of
quantities are not connected by line
segments but are simply scattered on
the Cartesian coordinate plane