COURSE OUTLINE NO.3 MGS 083 : QUANTITATIVE APPROACH TO MANAGEMENT SAMPLING ANALYSIS PREPARED BY : AR. DOROTHY CASTRO ENGR. JOHN ANDREW DE VERA ENGR. EDWARD DAVE MASAOY ENGR. FHRANCIS ABALOS PRESENTORS : AR. DOROTHY P. CASTRO ENGR. JOHN ANDREWS DE VERA ENGR. EDWARD DAVE MASAOY ENGR. FHRANCIS ABALOS AGENDA AND TOPICS AR.DOROTHY CASTRO 01 Introductions • Process • Sampling Frame and Size SAMPLING METHODS ENGR. JOHN ANDREWS DE VERA ENGR. JOHN ANDREWS DE VERA AR.DOROTHY CASTRO OVERVIEW OF SAMPLING Types of Sampling Methods 02 PROBABILITY SAMPLING Types and Examples NON- PROBABILITY SAMPLING ENGR. EDWARD DAVE MASAOY ENGR. FHRANCIS ABALOS Types and Examples ENGR. EDWARD DAVE MASAOY 03 IMPORTANCE OF SAMPLING ENGR.FHRANCIS ABALOS 04 KEY TAKEAWAYS AND REFERENCE 01 OVERVIEW OF SAMPLING WHAT IS SAMPLING ? SAMPLING is a statistical analysis process that involves analyzing a small portion of a dataset to make accurate conclusions about the whole, saving time and effort. How Sampling works ? Steps in Conducting a Sampling Process Define the population Choose a sampling method Determine the sample size Collect data from the sample Analyze and interpret the Data Difference between Population vs Sample : • Population - is the entire group that you want to draw conclusions about. • Sample - is the specific group of individuals that you will collect data from. SAMPLING FRAME • is the actual list of individuals that the sample will be drawn from. Ideally, it should include the entire target population (and nobody who is not part of that population). SAMPLE SIZE The number of individuals you should include in your sample depends on various factors, including the size and variability of the population and your research design. There are different sample size calculators and formulas depending on what you want to achieve with statistical analysis. 02 SAMPLING METHODS WHAT IS SAMPLE METHOD ? The method of collecting data from a population, regarding a sample on a group of items and examining it to draw out some conclusion. PRIMARY TYPES OF SAMPLING METHODS PROBABILITY SAMPLING involves random selection, allowing you to make strong statistical inferences about the whole group. NON- PROBABILITY SAMPLING involves non-random selection based on convenience or other criteria, allowing you to easily collect data. PROBABILITY SAMPLING METHODS PRIMARY TYPES OF SAMPLING METHODS PROBABILITY SAMPLING means that every member of the population has a chance of being selected. It is mainly used in quantitative research. TYPES OF PROBABILITY SAMPLING SIMPLE RANDOM SAMPLE SYSTEMATIC SAMPLE STRATIFIED SAMPLE CLUSTER SAMPLE TYPES OF PROBABILITY SAMPLING A. SIMPLE RANDOM SAMPLE • In a simple random sample, every member of the population has an equal chance of being selected. • To conduct this type of sampling, you can use tools like random number generators or other techniques that are based entirely on chance • There are two ways of collecting data through the random sampling method. These are the Lottery Method and Tables of Random Numbers.. SIMPLE RANDOM SAMPLING Example: In this example, members of a population are numbered and put into a hat. Tommy randomly picks two numbers from the hat. He then returns them and chooses again. Because of this, the population has an equal chance of being selected. SIMPLE RANDOM SAMPLING EXAMPLES : Engineering • A manufacturing company wants to assess the quality of a batch of 1000 screws. They could use simple random sampling to select 100 screws at random for inspection, ensuring each screw has an equal chance of being Quality Control: • To ensure the quality of products coming off an assembly line, an engineer might randomly select items to test for defects. Material Testing: • When testing the strength or durability of materials, an engineer could randomly select samples from a batch to ensure the results are representative of the entire batch. Surveying a Population: • If an engineer wants to gauge public opinion on a new product, they might randomly select individuals from a target demographic to participate in a survey. SIMPLE RANDOM SAMPLING MERITS • • • • Random Sampling method is economical as the items are selected randomly, which can be done by fewer people and with fewer resources. Random Sampling method is impartial and free from personal biases, as it randomly selects the numbers, and each of the items has an equal probability of getting selected. This method fairly represents the universe through samples. It is a straightforward and simple method of collecting data. DEMERITS • • Despite its various advantages, the random sampling method does not give proper weightage to some important items of the universe. Also, there is no guarantee that different items of the universe are proportionately represented. TYPES OF PROBABILITY SAMPLING • Systematic sampling is similar to simple random sampling, but it is usually slightly easier to conduct. • Different units of the population are systematically arranged in numerical, alphabetical, and geographical order. • To form a sample, every nth term or item of the numbered items is selected. This method is a short-cut method of collecting data through the Random Sampling method. B. SYSTEMATIC SAMPLE SYSTEMATIC SAMPLING Example: This example shows a neighborhood that will be systematically sampled. First we choose a starting point. Then we systematically choose every third house to survey. This is just one example of systematic sampling. SYSTEMATIC SAMPLING EXAMPLES : Engineering Example: A construction company needs to test the strength of concrete delivered to a site. They could use systematic sampling to test every 10th truckload of concrete delivered, ensuring a consistent interval for testing. Quality Control in Production Line • Imagine an engineer wants to check the quality of 1000 manufactured parts on a production line, but testing every single part is impractical. • Systematic Sampling: The engineer could systematically select every 10th part for testing, starting at a random point (e.g., the 3rd part). This ensures a representative sample of the entire production run. Investigation: • if 10 out of 200 people are to be selected for investigation, then these are first arranged in a systematic order. After that one of the first 10 people would be randomly selected. In the same way, every 10th person from the selected item will be taken under the sample. SYSTEMATIC SAMPLING MERITS • Systematic Sampling Method is a simple method of collecting data as the investigator can easily determine the sample. • As the items are arranged in a systematic order, the chances of personal biases are less. DEMERITS • As the first item of the given population is selected randomly, and then further items are selected on the basis of the first item, every item of the population does not get an equal chance of getting selected. • In case the population has homogeneous items, the method of Systematic Sampling does not serve any specific purpose. TYPES OF PROBABILITY SAMPLING C. STRATIFIED SAMPLE • involves dividing the population into subpopulations that may differ in important ways. It allows you draw more precise conclusions by ensuring that every subgroup is properly represented in the sample. • To use this sampling method, you divide the population into subgroups (called strata) based on the relevant characteristic (e.g., gender identity, age range, income bracket, job role). STRATIFIED SAMPLING Example: This example shows how the population is grouped together by some sort of characteristic. Then Joe chooses one from each group to make up his team. This is just one example of a stratified sampling. STRATIFIED SAMPLING EXAMPLES : Engineering Example: • An electrical engineering firm wants to assess the performance of different types of light bulbs. They could stratify the bulbs based on wattage and then sample bulbs from each wattage group to ensure that each type of bulb is adequately represented in the sample. Structural Design Evaluation: • If a company wants to assess the failure rate of buildings they designed, they could stratify the population of buildings by factors like building material (steel, concrete, wood), structural type (frame, shear wall), and functionality (residential, commercial, industrial) and then take random samples from each stratum. Material Testing: • When testing the strength of different types of concrete mixes, you could stratify the population of concrete samples based on the type of aggregate used (e.g., crushed stone, gravel, recycled concrete) and then randomly sample from each stratum to ensure each type of aggregate is represented proportionally in your testing. STRATIFIED SAMPLING MERITS • • • As different groups of a population with different characteristics are selected in this method of sampling, it covers a large portion of the characteristics of the population. Selection of the diverse characteristics of the population makes the comparative analysis of the data possible. The Stratified Method of Sampling offers meaningful and reliable results to the investigator. DEMERITS • The Stratified Sampling Method has a limited scope because it is suitable only when the investigator has complete knowledge of the diverse characteristics of the entire population. • As the population is divided into different strata by the investigator himself, there are chances of biasness in this step. • In the case of a small population, it may be difficult for the investigator to divide the population into small strata. TYPES OF PROBABILITY SAMPLING • • Involves dividing the population into subgroups, but each subgroup should have similar characteristics to the whole sample. Instead of sampling individuals from each subgroup, you randomly select entire subgroups If it is practically possible, you might include every individual from each sampled cluster. If the clusters themselves are large, you can also sample individuals from within each cluster using one of the techniques above. This is called multistage sampling. D. CLUSTERED SAMPLING CLUSTERED SAMPLING Example: This example shows clusters of individuals separated by their street/avenue. Joe then chooses one street/avenue to do his survey. This is just one example of a cluster sampling. CLUSTERED SAMPLING EXAMPLES : Engineering Example: • A civil engineering firm wants to assess the quality of roads in a city. They could divide the city into districts (clusters) and then randomly select a few districts to inspect, rather than inspecting every road in the entire city. Quality Control in Manufacturing: • Scenario: A large manufacturing plant produces a product on multiple assembly lines. To assess the overall quality, instead of testing every product, the plant can randomly select a few assembly lines (clusters) and test all products from those lines. • Clusters: Assembly lines. • Sampling Method: Randomly select a number of assembly lines, then test every product from those selected lines. CLUSTERED SAMPLING EXAMPLES : Civil Engineering Infrastructure Assessment: • Scenario: A city wants to assess the condition of its bridges. Instead of inspecting every bridge, they can randomly select a few bridge clusters (e.g., bridges of the same type or in the same geographical area) and inspect all bridges within those clusters. • Clusters: Bridges of the same type or in the same geographical area. • Sampling Method: Randomly select clusters, then inspect all bridges within those clusters. Product Testing: • Scenario: A company wants to test the durability of a new type of plastic. Instead of testing every piece of plastic, they can randomly select a few batches (clusters) and test all pieces within those batches. • Clusters: Batches of plastic. • Sampling Method: Randomly select batches, then test all pieces within those batch CLUSTERED SAMPLING EXAMPLES : MERITS • Cluster sampling is often more economical and quicker than other methods, especially for large, geographically dispersed populations, as it reduces travel and administrative costs by focusing on specific areas or group • It makes large-scale studies more manageable, particularly when a complete list of all population members is unavailable. • The process is easier to execute than some other sampling methods, as it doesn't require a comprehensive list of all population members. DEMERITS • Clustering can lead to higher variability within a sample compared to simple random sampling, resulting in less precise estimates • If clusters are not chosen carefully or are not representative of the overall population, there is a risk of bias, potentially skewing the study results. • Cluster sampling provides less statistical certainty than other methods, such as simple random sampling, because it is difficult to ensure that clusters properly represent the population as a whole When do we Use Probability Sampling? Non-Probability Sampling Methods PRIMARY TYPES OF SAMPLING METHODS NON- PROBABILITY SAMPLING individuals are selected based on non-random criteria, and not every individual has a chance of being included. TYPE OF NON-PROBABILITY SAMPLING METHODS CONVENIENCE SAMPLE PURPOSIVE SAMPLE SNOW BALL SAMPLE QUOTA SAMPLE TYPE OF NON-PROBABILITY SAMPLING METHODS A. CONVENIENCE SAMPLING • A convenience sample simply includes the individuals who happen to be most accessible to the researcher. • This is an easy and inexpensive way to gather initial data, but there is no way to tell if the sample is representative of the population, so it can’t produce generalizable results. CONVENIENCE SAMPLING Example: This example shows Joe wanting to survey his friends but is inconvenienced by the distance he would have to travel to get a good sample. He instead samples the friends closest to him. This is just one example of convenience sampling. CONVENIENCE SAMPLING EXAMPLES : Engineering Example: • A researcher studying the noise levels in a factory might choose to measure noise levels in the areas where they are working, rather than going to different parts of the factory. User Feedback on a New Design:: • An engineer could quickly gather feedback on a new product design by asking colleagues or friends who are readily available to provide their opinions. Gathering Information on a New Material: • Engineers can use convenience sampling to gather information on the properties of a new material by testing the material with readily available equipment or by asking colleagues who are experts in materials science. CONVENIENCE SAMPLING MERITS • The Convenience Sampling Method is the least expensive method of collecting data. • It is also the simplest method of collecting data from the population. DEMERITS • This method is highly unreliable, as the investigator selects the items that suit him, and it is not possible that every investigator has reliable thinking or purpose of investigation. Besides, different investigators have different perspectives. TYPE OF NON-PROBABILITY SAMPLING METHODS • Similar to a convenience sample, a voluntary response sample is mainly based on ease of access. Instead of the researcher choosing participants and directly contacting them, people volunteer themselves (e.g. by responding to a public online survey). • Voluntary response samples are always at least somewhat biased, as some people will inherently be more likely to volunteer than others, leading to self-selection bias.. B.VOLUNTARY SAMPLING VOLUNTARY SAMPLING Example: • You send out the survey to all students at your university and a lot of students decide to complete it. This can certainly give you some insight into the topic, but the people who responded are more likely to be those who have strong opinions about the student support services, so you can’t be sure that their opinions are representative of all students. Example: • Suppose you are doing an environmental survey. • Imagine researchers want to know what people think about protecting the environment. They create an online survey and share the link on social media.Anyone who sees the link can choose to fill out the survey. Only those who care about environmental issues will likely respond. Therefore, the results will reflect the opinions of engaged individuals, but not necessarily everyone in the population TYPE OF NON-PROBABILITY SAMPLING METHODS C. PURPOSIVE SAMPLING • This type of sampling, also known as judgement sampling, involves the researcher using their expertise to select a sample that is most useful to the purposes of the research. • The method in which the investigator himself selects the sample of his choice, which in his opinion is best to represent the universe PURPOSIVE SAMPLING EXAMPLES Investigating a new material's performance: • If engineers are studying a new composite material's strength under various stress conditions, they might purposively select samples with different fiber orientations or resin types to explore the material's behavior across a range of conditions. Assessing the effectiveness of a new design • To evaluate the performance of a new bridge design, engineers might purposively select bridges with similar spans, traffic loads, and environmental conditions to compare their performance and identify any design flaws. Understanding user experience with a new product: • When designing a new product, engineers might purposively select users with specific demographics, technical expertise, or usage patterns to gain insights into how different user groups interact with the product. PURPOSIVE SAMPLING EXAMPLES Assessing Building Materials: • Instead of testing every type of building material, you might purposively select materials known for their durability, sustainability, or resistance to specific conditions (e.g., corrosion, fire, or earthquakes) to evaluate their long-term performance. Studying Traffic Flow: • You could purposively select intersections or road sections known for high traffic congestion or specific traffic patterns (e.g., rush hour bottlenecks, peak hours, or commuter routes) to study traffic flow and identify potential solutions. Investigating Construction Site Safety: • You could purposively select construction sites known for specific safety hazards (e.g., high-rise construction, tunneling projects, or those involving hazardous materials) to study safety protocols and identify areas for improvement. PURPOSIVE SAMPLING MERITS 1. 2. 3. The Purposive or Deliberate Sampling Method is flexible, as it allows an investigator to include items with special significance in the sample. The investigator can easily tune the selection of items based on the purpose of the investigation, making it easy for him to perform the analysis. It is a very simple technique of collecting data, as the investigator can select the significant items in the sample by his choice. DEMERITS 1. As the investigator can select an item in the sample for the investigation, the probability of personal biases increases. 2. An increase in the probability of personal biases makes the method less reliable for collecting data, and the results become doubtful. TYPE OF NON-PROBABILITY SAMPLING METHODS • If the population is hard to access, snowball sampling can be used to recruit participants via other participants. The number of people you have access to “snowballs” as you get in contact with more people. • The downside here is also representativeness, as you have no way of knowing how representative your sample is due to the reliance on participants recruiting others. This can lead to sampling bias. D. SNOWBALL SAMPLING SNOWBALL SAMPLING EXAMPLES Studying a specific software development team: • If you want to understand the workflow and challenges of a team using a particular coding framework, you could start by interviewing one member and then ask them to refer other team members for interviews. Investigating a rare equipment failure: • When investigating a specific type of equipment failure that's not common, you could start by identifying an engineer who has experience with that equipment and then ask them to recommend other engineers who might have encountered the same issue. Understanding user experience with a new product: • To gather feedback on a new product, you could start by interviewing a few early adopters and then ask them to refer other users who have also used the product SNOWBALL SAMPLING EXAMPLES Evaluating a specific engineering design: • If you are trying to evaluate a specific design for a product, you could start with a few engineers who have experience with that type of design and then ask them to recommend other engineers who have also used the same design. How it works: • Identify an initial participant: Start with a person who fits the criteria of your study. • Conduct an initial interview or survey: Gather information from the first participant. • Ask for referrals: Ask the first participant to recommend other people who fit the criteria of your study. • Recruit the referrals: Contact the recommended participants and conduct interviews or surveys. • Continue the process: Repeat steps 3 and 4 until you have a sufficient sample size. TYPE OF NON-PROBABILITY SAMPLING METHODS E. QUOTA SAMPLING • Relies on the non-random selection of a predetermined number or proportion of units. This is called a quota • You first divide the population into mutually exclusive subgroups (called strata) and then recruit sample units until you reach your quota. • These units share specific characteristics, determined by you prior to forming your strata. The aim of quota sampling is to control what or who makes up your sample. QUOTA SAMPLING EXAMPLES Public Opinion on Infrastructure Projects: • Scenario: You're planning a new highway project and want to gauge public opinion on potential routes and environmental impacts. • Quota Sampling Approach: • Identify key demographics: Determine the relevant subgroups (e.g., residents living near the proposed route, commuters, business owners). • Set quotas: Establish the number of participants from each subgroup to ensure representation. For example, if 60% of the population affected by the project are commuters, ensure your sample includes 60% commuters. • Conduct surveys: Approach individuals in the target areas and conduct surveys or interviews, ensuring you meet the quotas for each subgroup. QUOTA SAMPLING EXAMPLES Material Testing and Quality Control: • Scenario: You need to assess the quality of concrete used in a bridge project. • Quota Sampling Approach: • Identify key factors: Determine the relevant factors (e.g., concrete mix, age of concrete, location of samples). • Set quotas: Establish the number of samples to be tested from each mix, age, and location. • Conduct tests: Collect concrete samples and perform tests, ensuring that the quotas are met for each factor. Traffic Flow Studies: • Scenario: You're studying traffic flow patterns on a major road to plan for future improvements. • Quota Sampling Approach: • Identify key factors:Determine the relevant factors (e.g., time of day, type of vehicle, origin/destination) • Set quotas: Establish the number of observations to be made for each factor • Conduct tests: Observe traffic flow patterns, ensuring that the quotas are met for each factor. QUOTA SAMPLING MERITS DEMERITS • •The chances of personal biases while selecting the items in a sample are high. The Quota Sampling Method of collecting data is affordable. •Personal biases during the selection of items in a sample make the reliability of the results through investigation questionable. Here’s how you differentiate probability sampling from non-probability sampling : PROBABILITY SAMPLING NON-PROBABILITY SAMPLING The samples are randomly selected. Samples are selected on the basis of the researcher’s subjective judgment. Everyone in the population has an equal chance of getting selected. Not everyone has an equal chance to participate. Researchers use this technique when they want to keep a tab on sampling bias. Sampling bias is not a concern for the researcher. Useful in an environment having a diverse population. Useful in an environment that shares similar traits. Used when the researcher wants to create accurate samples. This method does not help in representing the population accurately. Finding the correct audience is complex. Finding an audience is very simple. 03 SUMMARY AND IMPORTANCE OF SAMPLING PROBABILITY SAMPLING METHODS NON-PROBABILITY SAMPLING METHODS Definition Probability Sampling is a sampling technique in which samples from a larger population are chosen using a method based on the theory of probability. Non-probability sampling is a sampling technique in which the researcher selects samples based on the researcher’s subjective judgment rather than random selection. Alternatively Known as Random sampling method. Non-random sampling method Population selection The population is selected randomly. The population is selected arbitrarily. Nature The research is conclusive. The research is exploratory. Sample Since there is a method for deciding the sample, the population demographics are conclusively represented. Since the sampling method is arbitrary, the population demographics representation is almost always skewed. Time Taken Takes longer to conduct since the research design defines the selection parameters before the market research study begins. This type of sampling method is quick since neither the sample nor the selection criteria of the sample are undefined. Results This type of sampling is entirely unbiased; hence, the results are also This type of sampling is entirely biased, and hence the results are conclusive. biased, too, rendering the research speculative. Hypothesis In probability sampling, there is an underlying hypothesis before the study begins, and this method aims to prove the hypothesis. In non-probability sampling, the hypothesis is derived after conducting the research study. Importance of Sampling in Business and Finance As discussed, sampling has many uses. In business in finance, it is applied in varied ways: • Market research: By analyzing a sample of their target audiences, companies can determine product fit, gauge the interest in new items, and refine marketing strategies. • Financial auditing: Auditors perform a detailed analysis of company financials and transactions. They can choose transaction samples to identify errors and fraud without having to check every single company transaction. A sample would still allow auditors to identify inconsistencies or patterns of inaccurate reporting. • Quality control in manufacturing: To ensure product quality, manufacturers use sampling without having to inspect every item produced. If defects are found in the sample, fixes can be made before the entire batch is sent out. This helps ensure customer satisfaction and avoid costly recalls. USES OF SAMPLING Sampling is widely used across many industries. Businesses and organizations rely on it to make critical decisions, and it is particularly common in economic research. For example, government agencies, such as the Bureau of Labor Statistics (BLS), use sampling to assess employment trends. Rather than sampling every single business and household in the U.S., the BLS relies on samples. The Current Employment Statistics program samples approximately 119,000 businesses and government agencies, covering about 629,000 work sites. This allows policymakers and economists to gauge job growth, wage trends, and industry shifts without input from every employer in the country. The Current Population Survey samples 60,000 households to track changes in the labor market. It provides insights into unemployment, workforce participation, and employment across various demographics. These statistics influence government policy and business hiring decisions. Uses of Sampling In addition to economics, sampling is used in many other ways. Companies regularly conduct product testing on a sample of consumers before rolling out a new item to the larger public. This is done to gauge interest, issues, and the likely success of the product. Rather than sifting through millions of records, sampling is used by financial institutions to audit transactions to detect fraud. Retailers use sampling to analyze purchasing patterns rather than tracking every purchase. This can help with estimating future demand and setting prices. 04 KEY TAKE AWAYS Key Takeaways 1) 2) 3) Businesses and governments use sampling for market research, financial auditing, and employment statistics. Financial auditing: Many types of sampling methods exist, including random, stratified, cluster, systematic, and convenience, all of which are suited to specific situations. Sampling helps companies make better decisions, from predicting customer behavior to identifying fraud. REFERENCES ● https://towardsdatascience.com/an-introduction-to-probability-sampling-methods7a936e486b5/?source=userActivityShare-4dff0f45cb241638211885&_branch_match_id=1220941796812139940&_branch_referrer=H4sIAAAAAAAAA8soKSkottLXz8nM y9bLTU3JLM3VS87P1c%2FOTc31dwwpcMxJsq8rSk1LLSrKzEuPTyrKLy9OLbJ1zijKz00FAAzJucw9AAAA ● https://www.questionpro.com/blog/types-of-sampling-methods/ ● https://www.geeksforgeeks.org/methods-of-sampling/?ref=header_outind ● https://www.investopedia.com/terms/s/sampling.asp#:~:text=This%20information%20can%20help%20XYZ,with%2 0business%20decisions%20and%20policymaking. ● https://www.scribbr.com/methodology/sampling-methods/ Thanks! Slidesgo CREDITS: This presentation template was created by Slidesgo, and includes icons by Flaticon, and infographics & images by Freepik Flaticon Please keep this slide for attribution Freepik
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