Question

briefly explain five types of probability sampling in business statistics

Answer 1

1. Simple Random Sampling

Simple random sampling (SRS) is a process where a group of subjects (sample) is selected from a larger group (population) for the study of population. Each unit in the sample is chosen entirely by chance and each member of the population has an equal and independent chance of being included in the sample.

2. Systematic Sampling

In systematic sampling, the first sampling unit is selected at random, while the remaining units are selected according to a predetermined pattern involving regular intervals of units. Here, the remaining units don't have the same probability of being included in the sample but are dependent on the selection of the first unit.

3. Stratified Sampling

A stratified sampling is a technique in which the entire population is divided into relatively homogeneous subgroups or strata, and the final units are selected randomly from these strata’s.

4. Cluster Sampling

Cluster sampling is a sampling technique where the entire population is divided into groups or clusters, and selection of random sample of these clusters is done. All observations in the selected clusters are included in the sample. Cluster sampling is used when the researcher cannot get a complete list of the members of a population they want to study but can get a complete list of groups or 'clusters' of the population.

5. Multistage sampling.

With multistage sampling, we select a sample by using combinations of different sampling methods.