A Business Encyclopedia

Principles of Sampling

Definition: The Sampling is a statistical analysis tool wherein the data are collected from a few representative items of the universe, called as a sample, on the basis of which the characteristic of the entire population can be ascertained.

Principles of Sampling

There are two important principles of sampling on which the sampling theory depends on:

principles of sampling

  1. Principle of ‘Statastical Regularity’: The principle of statistical regularity is derived from the theory of probability in mathematics. According to this principle, when a large number of items is selected at random from the universe, then it is likely to possess the same characteristics as that of the entire population.

    This principle asserts that the sample selection is random, i.e. every item has an equal and likely chance of being selected. It is believed that sample selected randomly and not deliberately acts as a true representative of the population. Thus, this principle is characterized by the large sample size and the random selection of a representative sample.

  2. Principle of ‘Inertia of Large Numbers’: The principle of Inertia of large numbers states that the larger the size of the sample the more accurate the conclusion is likely to be. This principle is based on the notion, that large numbers are more stable in their characteristics than the small numbers, and the variation in the aggregate of large numbers is insignificant. It does not mean that there is no variation in the large numbers, there is, but is less than in the smaller numbers.

Thus, both the principles talk about the sample size i.e. the larger it is, the larger is the accuracy of the results obtained.

Leave a Reply

Your email address will not be published. Required fields are marked *


Related pages

miller & modiglianicollective bargaining and industrial relationsmnc meaningdiminishing marginal utility examplesassumptions of black scholes modelinternal sources of secondary researchmnc meantheory meaning in tamilmonetarist theory of inflationwhat is the meaning of coefficient in mathindifference in economicscollective bargaining in india pptadventure meaning in urdumaturity period of treasury bills in indiastradling meaningrbi definationwhat is the meaning of guerrilla warfaresnowballing sampling methodsteps involved in demand forecastingresonating definitionexample of product mixsimulation meaning in telugupromotional mix marketing definitionwhat is slr ratiolaw of diminishing marginal utility examplese tailing definitionwhat is operant conditioning definitionlaw of diminishing utilityexamples of market structures in economicswhat is the meaning of arbitragethe meaning of laissez fairecalculate acid test ratiowhat is moral suasionin a perfectly competitive market entryamortization schedule definitiontheories of organisational structurehybrid debt instrumentopinion polls definitionrecruit defsanctuary means in hindiexample of psychoanalyticsole trader characteristicsemployees epfmax weber and bureaucracywhat is the meaning of outbounddefinition autocracyresonating definitiondemand-pull inflation occurs whenmeaning of autonomouslyasset turnover ratio meaningdefinition retained earningsscatter graph definitionarbitrageurs definitioncultural factors affecting consumer behaviourinvestopedia liabilitiesfirm mean in hindiordinal theorydebtors turnover periodipo carve outmotivation theories in management pptsales promotion defaudit defcost push theory of inflation definitionassumptions of law of diminishing returnsgross fixed assets formulatransactional analysis in communication ppthenri fayol principles of organizationadvantages and disadvantages of linear programmingintrepreneurial marketingpavlovian theoryrevitalization definitionwhats a kioskdefinition of guerrilla tacticssnowballing techniquedef chronicmacro environmental factors affecting marketinglaw of diminising marginal utilitydefinition of planingvarious methods of sales forecastingwhat is a bank lockboxcauses of cost push inflationdifference between production function and isoquant