DSC1371 - Chapter 8 - Sampling and Sampling Distributions

DSC 1371
Business Statistics
Chapter 08: Sampling & Sampling Distributions
Department of Decision Sciences

Faculty of Management Studies and Commerce
University of Sri Jayewardenepura
Objectives
From this chapter, it is expected to;
• Explain the concepts of census and sampling, and the purpose of sampling.
• Explain sampling and non-sampling errors.
• Introduce the probability sampling and non-probability sampling methods.
• Introduce the concept of Sampling Distribution.
• Discuss the applications of sampling distributions of sample mean and sample
proportion under different conditions
2
Outcomes
• After learning the content of this chapter, the students should be able to;
 Explain the difference between census and sampling.

 Explain why populations are sampled.
 Use correct methods of probability sampling and non-probability sampling methods to select
samples from the target population.
 Describe the sampling distributions of sample mean and sample proportion.
 Solve probability problems using the distributions of sample mean and sample proportion.
Census & Sampling
❑ Census
Under the complete enumeration survey method, data are collected for each
and every unit (person, household, field, shop, factory, etc.) of the population.
❑ Sampling
Sampling is the process of selecting a representative part of the population to
draw some statistical information about the whole population.
4
Example 8.1:
i. A quality controller examines the 50 units from the days output.
ii.A trader-examining a handful of grains from the bag
iii.A tea- taster trying different brands of tea

Reasons for Sampling
❑ The destructive nature of certain tests.

❑ The physical impossibility of checking all items in
the population.
❑ The cost of studying all the items in a population
is often prohibitive.
❑ Greater Speed
❑ Greater Scope
❑ Greater Accuracy
6
Sampling and Non-Sampling Errors
❑ Sampling Errors
errors caused by observing a sample instead of the whole
population
It is the difference between a sample statistic and the corresponding
population parameter that would be obtained if the entire
population were surveyed instead of just a sample.
❑ Non Sampling Errors
statistical errors caused by human error
 Errors of observation
 Data entry-errors
 Tabulation-errors
 Non response errors
 Selection bias... 7
Methods of Sampling
Methods of Sampling
Non-Probability
Probability Sampling
Sampling
(Random Sampling)
(Non-random Sampling)
❑A sample selected in such a way that each item or person in the

population being studied has a known probability of being
included in the sample.
Probability Sampling…
Simple Random
Sampling
Stratified Sampling
Probability
Sampling
Systematic Sampling
Cluster Sampling
Simple Random Sampling
A sample is selected here so that each item or person

in the population has the same chance of being
selected.
◼ Lottery
Method
◼ Random Number Method
◼ Computer generated random numbers
11
Example 8.2:
Explain how to select a simple random sample of 30 employees, out of 800

employees
Stratified random sampling
❑ When the population is heterogeneous with respect to the

variable or characteristic under study
 First the population is divided into a number of sub-groups

called strata.
 These strata are internally homogeneous.
 Then a simple random sample is drawn from each stratum.
Stratified random sampling…
Factors to Determine the Number of Sampling
Units from Each Stratum
✓Relative Importance
✓Relative Variability
✓Unit sampling cost
✓Relative size
When first three factors are equal among each stratum,

the method of proportional allocation is used to select
a sample.
Total 12,000
Proportional Allocation Method

Example 8.3:
Our study is on university students’ knowledge and attitudes about Common

Non-communicable diseases in Sri Lanka.
We hope to study a sample of 250 university students. In this case, suppose we

consider the following four faculties as strata.
Assume following numbers of students are in each faculty.
Faculty Total Number

Arts 3500
Applied Sciences 2000
Management 5000
Medical sciences 1500
Total 12,000
Med
Mgt
1500 Arts Med
Sc 5000 Mgt Arts
3500 31 Sc
2000 104 73
42
Population Sample
Non-Probability Sampling
Judgment/
Purposive
Sampling
Convenience
Non- Sampling
Probability
Sampling Quota
Sampling
Snowball
Sampling
19
Example 8.4:
If a person is to submit a project report on labour-

management relations in textile industry and he takes a
textile mill close to his office and interviews some people
over there, he is following convenience sampling methods.
Sampling
Distributions
Sampling Distributions
❑ Parameters
Characteristic of a probability distribution
Ex: µ, σ2
❑ Statistics
Summery value calculated from a sample
Ex: X , S2
❑ Sampling Distributions
Distribution of all possible values that can be
assumed by some statistic. 22
Sampling Distribution of Sample Mean
❑Select a random sample of size n from the
‘parent’ population, and calculate the sample
mean.
❑Continue this procedure of taking random

samples of size n and calculating the sample
mean on each occasion.
❑ These sample means will vary and form a new

population with a distribution, which is called the
23
sampling distribution of the sample mean.
Sampling Distribution of Sample Mean
❑The expected value of the sample mean:
❑The standard error of the sample mean:

Sampling from a Normally Distributed Population
Sampling from
❑ Normally Distributed Populations
❑ Population variance is known ( σ2 – known )
X ~ N ( , 2 )
 For any sample size; n

Then, the distribution of the sample mean is also
normal.
25
Example 8.6:
A brand of water softener salt comes in a package, marked net weight 15kg. The company that
packages it claims that the bag contains an average of 15kg of salt and the standard deviation of
the weight is 0.7kg. Assuming that the weights are normally distributed, determine the
probability that the mean weight of 10 randomly selected bags of water-softener salt will be
14.5kg or less if the company's claim is true.
Sampling from Non-normally Distributed Populations
Sampling from
❑ Non-Normally Distributed Populations
❑ Population variance is known ( σ2 – known )
 For large sample size ( n ≥ 30 )
Then the distribution of mean is given by

CENTRAL
LIMIT
28
THEOREM
The Central Limit Theorem
❑Population with mean : μ

❑Finite standard deviation : σ
❑Sample size : n
❑Sample mean :
❑For large n,
Example 8.7:
An automobile battery manufacturer claims that its midgrade battery has a mean life
of 50 months with a standard deviation of 6 months.
(i)On the assumption that the manufacturer’s claims are true, find the probability that
a randomly selected battery of this type will last less than 48 months.
(ii)On the same assumption, find the probability that the mean life of a
random sample of 36 such batteries will be less than 48 months.
30
Sampling Distribution of the Sample Proportion
❑The parameter of interest for qualitative data is

the proportion of times a particular outcome
(success) occurs.
❑Let p be the proportion of girls in the selected
sample from a group of students.
girls
31
Sampling Distribution of the Sample Proportion
❑ To estimate the population proportion P we use the sample

proportion p
The proportion of successes in a fixed number n of binomial trials,
For large n, the distribution of p is approximately normal with mean
P and variance P(1-P)/n.
p ~ N (P, P(1 − P) / n )
How large does the sample size have to be valued? A widely used criterion is that both np and n(1-p) must be greater than 5.
32
), where P = True population proportion.
The question that now arises is; How large does the sample size have to be valued? A widely used criterion is that both np and n(1-p) must be greater than 5.
Example 8.8:
Suppose it is known that 43% of people in a particular society own an iPhone. If a

random sample of 50 people in such a society were surveyed, what is the probability
that the proportion of the sample who owned an iPhone is between 45% and 50%?
Example 8.9:
A recent study asked working adults if they worked most of their time remotely. The study found that
30% of employees spend the majority of their time working remotely. Suppose a sample of 150
working adults is taken
(i)What is the distribution of the sample proportion? Explain.

(ii)What is the mean and standard deviation of the sample proportion?
(iii)What is the probability that at most 27% of the workers in the sample, work most of their time
remotely?
(iv)What is the probability that at least 51 of the workers in the sample, work most of their time
remotely?
(v)What is the probability that between 32% and 35% of the workers in the sample, work most of their
time remotely?
Exercises: of 16 randomly selected vehicles is between 65 and 75 km/h.
(1) Weight of a package of sugar packeted by a machine is normally distributed with a

mean of 500g and a standard deviation of 6g. What is the probability that the total
weight of a randomly selected sample of 15 packages exceeds 7.56 Kg?
(2) Suppose speeds of vehicles on a particular stretch of roadway are normally

distributed with mean 70 km/h and standard deviation 7.5 km/h.
(i)Find the probability that the speed X of a randomly selected vehicle is between 65 and
75 km/h.
•Find
(ii) Find the probability that the mean speed X of 16 randomly selected vehicles is between
65 and 75 km/h.
Summary
❑ Census and Sampling
❑ Widely applied sampling techniques
❑ Sampling Distributions & their applications
36

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DSC 1371

Chapter 08: Sampling & Sampling Distributions

Department of Decision Sciences

 Explain the difference between census and sampling.

ii.A trader-examining a handful of grains from the bag

iii.A tea- taster trying different brands of tea

❑ The destructive nature of certain tests.

❑A sample selected in such a way that each item or person in the

A sample is selected here so that each item or person

Explain how to select a simple random sample of 30 employees, out of 800

❑ When the population is heterogeneous with respect to the

 First the population is divided into a number of sub-groups

When first three factors are equal among each stratum,

Proportional Allocation Method

Our study is on university students’ knowledge and attitudes about Common

We hope to study a sample of 250 university students. In this case, suppose we

Assume following numbers of students are in each faculty.

Faculty Total Number

If a person is to submit a project report on labour-

❑Continue this procedure of taking random

❑ These sample means will vary and form a new

❑The expected value of the sample mean:

❑The standard error of the sample mean:

 For any sample size; n

Then the distribution of mean is given by

❑Population with mean : μ

❑The parameter of interest for qualitative data is

❑ To estimate the population proportion P we use the sample

Suppose it is known that 43% of people in a particular society own an iPhone. If a

(i)What is the distribution of the sample proportion? Explain.

(1) Weight of a package of sugar packeted by a machine is normally distributed with a

(2) Suppose speeds of vehicles on a particular stretch of roadway are normally

❑ Census and Sampling

❑ Widely applied sampling techniques

❑ Sampling Distributions & their applications

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