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Sampling and Sampling Distributions
 Aims of Sampling
 Probability Distributions
 Sampling Distributions
 The Central Limit Theorem
 Types of Samples
Aims of sampling
 Reduces cost of research (e.g. political
polls)
 Generalize about a larger population (e.g.,
benefits of sampling city r/t neighborhood)
 In some cases (e.g. industrial production)
analysis may be destructive, so sampling
is needed
Probability
 Probability: what is the chance that a
given event will occur?
 Probability is expressed in numbers
between 0 and 1. Probability = 0 means
the event never happens; probability = 1
means it always happens.
 The total probability of all possible event
always sums to 1.
Probability distributions: Permutations
What is the probability distribution of number
of girls in families with two children?
2 GG
1 BG
1 GB
0 BB
Probability Distribution of
Number of Girls
0
0.1
0.2
0.3
0.4
0.5
0.6
0 1 2
How about family of three?
Num. Girls child #1 child #2 child #3
0 B B B
1 B B G
1 B G B
1 G B B
2 B G G
2 G B G
2 G G B
3 G G G
Probability distribution of number of girls
0
0.1
0.2
0.3
0.4
0.5
0 1 2 3
How about a family of 10?
0
0.05
0.1
0.15
0.2
0.25
0.3
0 1 2 3 4 5 6 7 8 9 10
As family size increases, the binomial
distribution looks more and more normal.
Number of Successes
3.02.01.00.0
Number of Successes
10987654321-0
Normal distribution
Same shape, if you adjusted the scales
CA
B
Coin toss
 Toss a coin 30 times
 Tabulate results
Coin toss
 Suppose this were 12 randomly selected
families, and heads were girls
 If you did it enough times distribution would
approximate “Normal” distribution
 Think of the coin tosses as samples of all
possible coin tosses
Sampling distribution
Sampling distribution of the mean – A
theoretical probability distribution of sample
means that would be obtained by drawing from
the population all possible samples of the same
size.
Central Limit Theorem
 No matter what we are measuring, the
distribution of any measure across all
possible samples we could take
approximates a normal distribution, as
long as the number of cases in each
sample is about 30 or larger.
Central Limit Theorem
If we repeatedly drew samples from a
population and calculated the mean of a
variable or a percentage or, those sample
means or percentages would be normally
distributed.
Most empirical distributions are not normal:
U.S. Income distribution 1992
But the sampling distribution of mean income over
many samples is normal
Sampling Distribution of Income, 1992 (thousands)
18 19 20 21 22 23 24 25 26
N
u
m
b
e
r
o
f
s
a
m
p
l
e
s
Numberofsamples
Standard Deviation
Measures how spread
out a distribution is.
Square root of the sum
of the squared
deviations of each
case from the mean
over the number of
cases, or
( )
N
Xi∑ −
=
2
µ
σ
Deviation from Mean
Amount X (X - X) ( X - X )
600 435 600 - 435 = 165 27,225
350 435 350 - 435 = -85 7,225
275 435 275 - 435 = -160 25,600
430 435 430 -435 = -5 25
520 435 520 - 435 = 85 7,225
0 67,300
( )X X
n
−
−
∑
1
s = = = = 129.7167 300
4
,
16 825,
2
2
Example of Standard Deviation
Standard Deviation and Normal Distribution
10
8
6
4
2
0
37 38 39 40 41 42 43 44 45 46
Sample Means
S.D. = 2.02
Mean of means = 41.0
Number of Means = 21
Distribution of Sample Means with 21
Samples
Frequency
Frequency
14
12
10
8
6
4
2
0 37 38 39 40 41 42 43 44 45 46
Sample Means
Distribution of Sample Means with 96
Samples
S.D. = 1.80
Mean of Means = 41.12
Number of Means = 96
Distribution of Sample Means with 170
Samples
Frequency
30
20
10
0 37 38 39 40 41 42 43 44 45 46
Sample Means
S.D. = 1.71
Mean of Means= 41.12
Number of Means= 170
The standard deviation of the sampling
distribution is called the standard error
Standard error can be estimated from a single sample:
The Central Limit Theorem
Where
s is the sample standard deviation (i.e., the
sample based estimate of the standard deviation of the
population), and
n is the size (number of observations) of the sample.
Because we know that the sampling distribution is normal, we
know that 95.45% of samples will fall within two standard errors.
95% of samples fall within 1.96
standard errors.
99% of samples fall within
2.58 standard errors.
Confidence intervals
Sampling
 Population – A group that includes all the
cases (individuals, objects, or groups) in
which the researcher is interested.
 Sample – A relatively small subset from a
population.
Random Sampling
 Simple Random Sample – A sample
designed in such a way as to ensure
that (1) every member of the population
has an equal chance of being chosen
and (2) every combination of N
members has an equal chance of being
chosen.
 This can be done using a computer,
calculator, or a table of random
numbers
Population inferences can be made...
...by selecting a representative sample from
the population
Random Sampling
 Systematic random sampling – A
method of sampling in which every Kth
member (K is a ration obtained by dividing
the population size by the desired sample
size) in the total population is chosen for
inclusion in the sample after the first
member of the sample is selected at
random from among the first K members
of the population.
Systematic Random Sampling
Stratified Random Sampling
 Proportionate stratified sample – The size
of the sample selected from each subgroup is
proportional to the size of that subgroup in
the entire population. (Self weighting)
 Disproportionate stratified sample – The
size of the sample selected from each
subgroup is disproportional to the size of that
subgroup in the population. (needs weights)
Disproportionate Stratified Sample
Stratified Random Sampling
 Stratified random sample – A method of
sampling obtained by (1) dividing the
population into subgroups based on one
or more variables central to our analysis
and (2) then drawing a simple random
sample from each of the subgroups

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Chp11 - Research Methods for Business By Authors Uma Sekaran and Roger Bougie

  • 1. Sampling and Sampling Distributions  Aims of Sampling  Probability Distributions  Sampling Distributions  The Central Limit Theorem  Types of Samples
  • 2. Aims of sampling  Reduces cost of research (e.g. political polls)  Generalize about a larger population (e.g., benefits of sampling city r/t neighborhood)  In some cases (e.g. industrial production) analysis may be destructive, so sampling is needed
  • 3. Probability  Probability: what is the chance that a given event will occur?  Probability is expressed in numbers between 0 and 1. Probability = 0 means the event never happens; probability = 1 means it always happens.  The total probability of all possible event always sums to 1.
  • 4. Probability distributions: Permutations What is the probability distribution of number of girls in families with two children? 2 GG 1 BG 1 GB 0 BB
  • 5. Probability Distribution of Number of Girls 0 0.1 0.2 0.3 0.4 0.5 0.6 0 1 2
  • 6. How about family of three? Num. Girls child #1 child #2 child #3 0 B B B 1 B B G 1 B G B 1 G B B 2 B G G 2 G B G 2 G G B 3 G G G
  • 7. Probability distribution of number of girls 0 0.1 0.2 0.3 0.4 0.5 0 1 2 3
  • 8. How about a family of 10? 0 0.05 0.1 0.15 0.2 0.25 0.3 0 1 2 3 4 5 6 7 8 9 10
  • 9. As family size increases, the binomial distribution looks more and more normal. Number of Successes 3.02.01.00.0 Number of Successes 10987654321-0
  • 10. Normal distribution Same shape, if you adjusted the scales CA B
  • 11. Coin toss  Toss a coin 30 times  Tabulate results
  • 12. Coin toss  Suppose this were 12 randomly selected families, and heads were girls  If you did it enough times distribution would approximate “Normal” distribution  Think of the coin tosses as samples of all possible coin tosses
  • 13. Sampling distribution Sampling distribution of the mean – A theoretical probability distribution of sample means that would be obtained by drawing from the population all possible samples of the same size.
  • 14. Central Limit Theorem  No matter what we are measuring, the distribution of any measure across all possible samples we could take approximates a normal distribution, as long as the number of cases in each sample is about 30 or larger.
  • 15. Central Limit Theorem If we repeatedly drew samples from a population and calculated the mean of a variable or a percentage or, those sample means or percentages would be normally distributed.
  • 16. Most empirical distributions are not normal: U.S. Income distribution 1992
  • 17. But the sampling distribution of mean income over many samples is normal Sampling Distribution of Income, 1992 (thousands) 18 19 20 21 22 23 24 25 26 N u m b e r o f s a m p l e s Numberofsamples
  • 18. Standard Deviation Measures how spread out a distribution is. Square root of the sum of the squared deviations of each case from the mean over the number of cases, or ( ) N Xi∑ − = 2 µ σ
  • 19. Deviation from Mean Amount X (X - X) ( X - X ) 600 435 600 - 435 = 165 27,225 350 435 350 - 435 = -85 7,225 275 435 275 - 435 = -160 25,600 430 435 430 -435 = -5 25 520 435 520 - 435 = 85 7,225 0 67,300 ( )X X n − − ∑ 1 s = = = = 129.7167 300 4 , 16 825, 2 2 Example of Standard Deviation
  • 20. Standard Deviation and Normal Distribution
  • 21. 10 8 6 4 2 0 37 38 39 40 41 42 43 44 45 46 Sample Means S.D. = 2.02 Mean of means = 41.0 Number of Means = 21 Distribution of Sample Means with 21 Samples Frequency
  • 22. Frequency 14 12 10 8 6 4 2 0 37 38 39 40 41 42 43 44 45 46 Sample Means Distribution of Sample Means with 96 Samples S.D. = 1.80 Mean of Means = 41.12 Number of Means = 96
  • 23. Distribution of Sample Means with 170 Samples Frequency 30 20 10 0 37 38 39 40 41 42 43 44 45 46 Sample Means S.D. = 1.71 Mean of Means= 41.12 Number of Means= 170
  • 24. The standard deviation of the sampling distribution is called the standard error
  • 25. Standard error can be estimated from a single sample: The Central Limit Theorem Where s is the sample standard deviation (i.e., the sample based estimate of the standard deviation of the population), and n is the size (number of observations) of the sample.
  • 26. Because we know that the sampling distribution is normal, we know that 95.45% of samples will fall within two standard errors. 95% of samples fall within 1.96 standard errors. 99% of samples fall within 2.58 standard errors. Confidence intervals
  • 27. Sampling  Population – A group that includes all the cases (individuals, objects, or groups) in which the researcher is interested.  Sample – A relatively small subset from a population.
  • 28. Random Sampling  Simple Random Sample – A sample designed in such a way as to ensure that (1) every member of the population has an equal chance of being chosen and (2) every combination of N members has an equal chance of being chosen.  This can be done using a computer, calculator, or a table of random numbers
  • 30. ...by selecting a representative sample from the population
  • 31. Random Sampling  Systematic random sampling – A method of sampling in which every Kth member (K is a ration obtained by dividing the population size by the desired sample size) in the total population is chosen for inclusion in the sample after the first member of the sample is selected at random from among the first K members of the population.
  • 33. Stratified Random Sampling  Proportionate stratified sample – The size of the sample selected from each subgroup is proportional to the size of that subgroup in the entire population. (Self weighting)  Disproportionate stratified sample – The size of the sample selected from each subgroup is disproportional to the size of that subgroup in the population. (needs weights)
  • 35. Stratified Random Sampling  Stratified random sample – A method of sampling obtained by (1) dividing the population into subgroups based on one or more variables central to our analysis and (2) then drawing a simple random sample from each of the subgroups