Tamil Nadu HSE Second Year Business Mathematics and Statistics study materials
Tamil Nadu HSE Second Year Business Mathematics and Statistics study resources

Tamil Nadu HSE Second Year Business Mathematics and Statistics: Sampling Techniques and Estimation

Tamil Nadu HSE Second Year Business Mathematics and Statistics · Work through your exam, one topic at a time.

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Sampling Techniques and Estimation

Sampling Techniques and Estimation tests how a sample is selected and how sample data are used to estimate population values. Expect definitions, comparisons of sampling methods, standard error, confidence intervals and sample-size calculations.

Core rules

  • A parameter describes a population (μ, σ, p); a statistic describes a sample (x̄, s, p̂).
  • Probability sampling includes simple random sampling, stratified sampling (divide into homogeneous strata), systematic sampling (every kth unit) and cluster sampling (select whole groups). Quota sampling is non-probability.
  • Sampling error arises because a sample is used; non-sampling errors include non-response, faulty measurement and frame errors.
  • Standard error of the mean is σ/√n. For large samples, a (1−α)100% confidence interval is x̄ ± z_{α/2}(σ/√n).
  • Required sample size for margin of error E is n = (zσ/E)², rounded up.

Worked example

A sample of 100 items has mean 52. The population standard deviation is 10. Find a 95% confidence interval for μ. SE = 10/√100 = 1. For 95% confidence, z = 1.96. Margin of error = 1.96 × 1 = 1.96. Interval: 52 ± 1.96, that is (50.04, 53.96). Interpretation: the method gives intervals that contain μ in 95% of repeated samples.

Traps

Dividing by n instead of √n; using z when σ is unknown and n is small; saying a particular computed interval has a 95% probability of containing μ; ignoring finite population correction in small populations; and treating non-response as sampling error.