What exactly do you mean by Sampling? what are their advantages?
Sampling is a process used in statistical analysis in which a predetermined number of observations are taken from a larger population. The methodology used to sample from a larger population depends on the type of analysis being performed, but it may include simple random sampling or systematic sampling.
It is used by various sampling companies in which they also offer free sample products to the customers. This not only helps the sampling company to increase their value but also helps them to offer various free sample products leading to an increase in production of sampling companies.
- Certified Public Accountants use sampling during audits to determine the accuracy and completeness of account balances.
- Types of sampling include random sampling, block sampling, judgement sampling, and systematic sampling.
- Companies use sampling as a marketing tool to identify the needs and wants of their target market.
How Sampling is Used
A Certified Public Accountant (CPA) performing a financial audit uses sampling to determine the accuracy and completeness of account balances in the financial statements. Sampling performed by an auditor is referred to as audit sampling. It is necessary to perform audit sampling when the population, in this case account transaction information, is large. Additionally, managers within a company may use customer sampling to assess the demand for new products or the success of marketing efforts.
The chosen sample should be a fair representation of the entire population. When taking a sample from a larger population, it is important to consider how the sample is chosen. To get a representative sample, it must be drawn randomly and encompass the whole population. For example, a lottery system could be used to determine the average age of students in a university by sampling 10% of the student body.
Application of certain queries to less than 100% of the population(group of all items that we are trying to observe and analyse) is known as Sampling. In simple terms, sampling is the process of selection of a limited number of elements from a large group of elements (population) so that the characteristics of the samples taken are identical to that of the population. In the above examples, suppose you choose 1000 students among 4 millions students. then:
- 4 millions students is population
- 1000 is the size of sample
Sampling is a great tool if you have to deal with a huge volume of data and you have limited resources. When you have a large population of the data, then it can also be the only option you have.
Although you do not subject all the data to your queries, the chance that you get the desired results is almost similar to that when you do thorough checking. Provided that your choice for the sampling techniques must be appropriate. Sampling company also offers various free products in order to increase customers as free sample products provide the sampling company an experienced audience.
Advantages of sampling
Sampling ensures convenience, collection of intensive and exhaustive data, suitability in limited resources and better rapport. In addition to this, sampling has the following advantages also.
1. Less expenditure on sampling
If data were to be collected for the entire population, the cost will be quite high. A sample is a small proportion of a population. So, the cost will be lower if data is collected for a sample of the population which is a big advantage.
2. Takes less time
Use of sampling takes less time also. It consumes less time than census technique. Tabulation, analysis etc., take much less time in the case of a sample than in the case of a population.
3. Provides better scope and future
The investigator is concerned with the generalisation of data. To study a whole population in order to arrive at generalisations would be impractical.
Some populations are so large that their characteristics could not be measured. Before the measurement was completed, the population would have changed. But the process of sampling makes it possible to arrive at generalisations by studying the variables within a relatively small proportion of the population.
4. Provides appropriate data
Having drawn a sample and computed the desired descriptive statistics, it is possible to determine the stability of the obtained sample value. A sample represents the population from which its is drawn. It permits a high degree of accuracy due to a limited area of operations. Moreover, careful execution of field work is possible. Ultimately, the results of sampling studies turn out to be sufficiently accurate.
5. Organisation of convenience
Organisational problems involved in sampling are very few. Since the sample is of a small size, vast facilities are not required. Sampling is therefore economical in respect of resources. Study of samples involves less space and equipment.
6. Intensive and exhaustive data
In sample studies, measurements or observations are made of a limited number. So, intensive and exhaustive data are collected.
7. Suitable in limited resources
The resources available within an organisation may be limited. Studying the entire universe is not viable. The population can be satisfactorily covered through sampling. Where limited resources exist, use of sampling is an appropriate strategy while conducting marketing research.
8. Better rapport
An effective research study requires a good rapport between the researcher and the respondents. When the population of the study is large, the problem of rapport arises. But manageable samples permit the researcher to establish adequate rapport with the respondents.