In this section we describe how to select a sample. We first describe how to sample from a finite population and then describe how to select a sample from an infinite population.

**1. Sampling from a Finite Population**

Statisticians recommend selecting a probability sample when sampling from a finite population because a probability sample allows them to make valid statistical inferences about the population. The simplest type of probability sample is one in which each sample of size n has the same probability of being selected. It is called a simple random sample. A simple random sample of size n from a finite population of size N is defined as follows.

One procedure for selecting a simple random sample from a finite population is to use a table of random numbers to choose the elements for the sample one at a time in such a way that, at each step, each of the elements remaining in the population has the same probability of being selected. Sampling n elements in this way will satisfy the definition of a simple random sample from a finite population.

To select a simple random sample from the finite population of EAI managers, we first construct a frame by assigning each manager a number. For example, we can assign the managers the numbers 1 to 2500 in the order that their names appear in the EAI personnel file. Next, we refer to the table of random numbers shown in Table 7.1. Using the first row of the table, each digit, 6, 3, 2, . . . , is a random digit having an equal chance of occurring. Because the largest number in the population list of EAI managers, 2500, has four digits, we will select random numbers from the table in sets or groups of four digits. Even though we may start the selection of random numbers anywhere in the table and move systematically in a direction of our choice, we will use the first row of Table 7.1 and move from left to right. The first 7 four-digit random numbers are

6327 1599 8671 7445 1102 1514 1807

Because the numbers in the table are random, these four-digit numbers are equally likely.

We can now use these four-digit random numbers to give each manager in the population an equal chance of being included in the random sample. The first number, 6327, is greater than 2500. It does not correspond to one of the numbered managers in the population, and hence is discarded. The second number, 1599, is between 1 and 2500. Thus the first manager selected for the random sample is number 1599 on the list of EAI managers. Continuing this process, we ignore the numbers 8671 and 7445 before identifying managers number 1102, 1514, and 1807 to be included in the random sample. This process continues until the simple random sample of 30 EAI managers has been obtained.

In implementing this simple random sample selection process, it is possible that a random number used previously may appear again in the table before the complete sample of 30 EAI managers has been selected. Because we do not want to select a manager more than one time, any previously used random numbers are ignored because the corresponding manager is already included in the sample. Selecting a sample in this manner is referred to as sampling without replacement. If we selected a sample such that previously used random numbers are acceptable and specific managers could be included in the sample two or more times, we would be sampling with replacement. Sampling with replacement is a valid way of identifying a simple random sample. However, sampling without replacement is the sampling procedure used most often in practice. When we refer to simple random sampling, we will assume the sampling is without replacement.

**2. Sampling from an Infinite Population**

Sometimes we want to select a sample from a population, but the population is infinitely large or the elements of the population are being generated by an ongoing process for which there is no limit on the number of elements that can be generated. Thus, it is not possible to develop a list of all the elements in the population. This is considered the infinite population case. With an infinite population, we cannot select a simple random sample because we cannot construct a frame consisting of all the elements. In the infinite population case, statisticians recommend selecting what is called a random sample.

Care and judgment must be exercised in implementing the selection process for obtaining a random sample from an infinite population. Each case may require a different selection procedure. Let us consider two examples to see what we mean by the conditions (1) each element selected comes from the same population and (2) each element is selected independently.

A common quality control application involves a production process where there is no limit on the number of elements that can be produced. The conceptual population we are sampling from is all the elements that could be produced (not just the ones that are produced) by the ongoing production process. Because we cannot develop a list of all the elements that could be produced, the population is considered infinite. To be more specific, let us consider a production line designed to fill boxes of a breakfast cereal with a mean weight of 24 ounces of breakfast cereal per box. Samples of 12 boxes filled by this process are periodically selected by a quality control inspector to determine if the process is operating properly or if, perhaps, a machine malfunction has caused the process to begin underfilling or overfilling the boxes.

With a production operation such as this, the biggest concern in selecting a random sample is to make sure that condition 1, the sampled elements are selected from the same population, is satisfied. To ensure that this condition is satisfied, the boxes must be selected at approximately the same point in time. This way the inspector avoids the possibility of selecting some boxes when the process is operating properly and other boxes when the process is not operating properly and is underfilling or overfilling the boxes. With a production process such as this, the second condition, each element is selected independently, is satisfied by designing the production process so that each box of cereal is filled independently. With this assumption, the quality control inspector only needs to worry about satisfying the same population condition.

As another example of selecting a random sample from an infinite population, consider the population of customers arriving at a fast-food restaurant. Suppose an employee is asked to select and interview a sample of customers in order to develop a profile of customers who visit the restaurant. The customer arrival process is ongoing and there is no way to obtain a list of all customers in the population. So, for practical purposes, the population for this ongoing process is considered infinite. As long as a sampling procedure is designed so that all the elements in the sample are customers of the restaurant and they are selected independently, a random sample will be obtained. In this case, the employee collecting the sample needs to select the sample from people who come into the restaurant and make a purchase to ensure that the same population condition is satisfied. If, for instance, the employee selected someone for the sample who came into the restaurant just to use the restroom, that person would not be a customer and the same population condition would be violated. So, as long as the interviewer selects the sample from people making a purchase at the restaurant, condition 1 is satisfied. Ensuring that the customers are selected independently can be more difficult.

The purpose of the second condition of the random sample selection procedure (each element is selected independently) is to prevent selection bias. In this case, selection bias would occur if the interviewer were free to select customers for the sample arbitrarily. The interviewer might feel more comfortable selecting customers in a particular age group and might avoid customers in other age groups. Selection bias would also occur if the interviewer selected a group of five customers who entered the restaurant together and asked all of them to participate in the sample. Such a group of customers would be likely to exhibit similar characteristics, which might provide misleading information about the population of customers. Selection bias such as this can be avoided by ensuring that the selection of a particular customer does not influence the selection of any other customer. In other words, the elements (customers) are selected independently.

McDonald’s, the fast-food restaurant leader, implemented a random sampling procedure for this situation. The sampling procedure was based on the fact that some customers presented discount coupons. Whenever a customer presented a discount coupon, the next customer served was asked to complete a customer profile questionnaire. Because arriving customers presented discount coupons randomly and independently of other customers, this sampling procedure ensured that customers were selected independently. As a result, the sample satisfied the requirements of a random sample from an infinite population.

Situations involving sampling from an infinite population are usually associated with a process that operates over time. Examples include parts being manufactured on a production line, repeated experimental trials in a laboratory, transactions occurring at a bank, telephone calls arriving at a technical support center, and customers entering a retail store. In each case, the situation may be viewed as a process that generates elements from an infinite population. As long as the sampled elements are selected from the same population and are selected independently, the sample is considered a random sample from an infinite population.

Source: Anderson David R., Sweeney Dennis J., Williams Thomas A. (2019), *Statistics for Business & Economics*, Cengage Learning; 14th edition.

31 Aug 2021

30 Aug 2021

30 Aug 2021

28 Aug 2021

31 Aug 2021

28 Aug 2021