Understanding Sampling Methods and Error Analysis in Research

School: Pennsylvania Highlands Community College - Course: BUS 311 - Subject: Accounting

Identify the sampling method used in the following situations 1. A medical researcher selects every third chart in a file cabinet to study if proper charting procedures are being used to record prescription drug dosages. Systematic Random Sampling 2. The Internal Revenue Service is going to select 1,000 tax returns at random for a compliance audit. One thousand nine-digit Social Security numbers are chosen from a table of random numbers to determine which taxpayers are in the sample. Stratified Random sampling 3. A sample of businesses in the lumber industry is to be selected for a study on economics. The lumber companies are separated into those with sales under $20 million and those with sales over $20 million. A sample of 20 companies are selected from each group for a total sample size of 40. Cluster Sampling 4. A manager of a store wants to observe how a new customer checkout system is working. He observes the next five customers to come into the store. Judgment Sampling 5. An auditor is conducting a review of the accounts payable of a corporation. A sample of accounts is to be chosen for an audit. The auditor selects the largest accounts for a thorough review. Simple Random Sampling 6. A large corporation wants to obtain a sample of its employees to solicit opinions on the health care benefits package. A sample of 300 employees are to be chosen. A random sample of 10 offices around the country are selected and a 30 employees are randomly selected from each office.
Systematic Sampling Questions: 7. Define the following terms: Sampling Error - The difference between the sample mean and the true population mean Sampling Distribution-A distribution of every possible sample mean that could be taken from a population Standard Error of the Mean- The standard deviation of the sampling distribution Central Limit Theorem- As long as your sample size is large enough, the sample distribution will be a normal distribution. The mean of the sampling distribution will be the same as the mean of the population and the standard deviation of the sampling distribution can be obtained using the following formula: σ´ x= σ n

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