DEFINITION of 'Sampling'
A process used in statistical analysis in which a predetermined number of observations will be taken from a larger population. The methodology used to sample from a larger population will depend on the type of analysis being performed, but will include simple random sampling, systematic sampling and observational sampling.
The sample should be a representation of the general population.
BREAKING DOWN 'Sampling'
When taking a sample from a larger population, it is important to consider how the sample will be drawn. To get a representative sample, the sample must be drawn randomly and encompass the entire 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, taking an equal number of students from each faculty.

Control
1. The use of power to influence an outcome. For example, working ... 
Normal Distribution
A probability distribution that plots all of its values in a ... 
Sampling Error
A statistical error to which an analyst exposes a model simply ... 
Statistics
A type of mathematical analysis involving the use of quantified ... 
Sample
A subset containing the characteristics of a larger population. ... 
Central Limit Theorem  CLT
A statistical theory that states that given a sufficiently large ...

Mutual Funds & ETFs
The 4 Best U.S. Large Cap Index Mutual Funds
Discover the top four mutual funds that use passive investment approaches and follow stock indexes composed of U.S. largecap equities. 
Fundamental Analysis
How Does Sampling Work?
Sampling is a term used in statistics that describes methods of selecting a predefined representative number of data from a larger data population. 
Markets
Using Historical Volatility To Gauge Future Risk
Use these calculations to uncover the risk involved in your investments. 
Retirement
Consumer Confidence: A Killer Statistic
The consumer confidence is key to any market economy, so investors need to learn the measures and how to analyze them. 
Mutual Funds & ETFs
5 Ways To Measure Mutual Fund Risk
These statistical measurements highlight how to mitigate risk and increase rewards. 
Active Trading
Random Reinforcement: Why Most Traders Fail
This phenomenon can cause a trader to abandon a proven strategy or risk everything on chance. Find out how to avoid it. 
Economics
The Truth about Productivity
Why has labor market productivity slowed sharply around the world in recent years? One of the greatest economic mysteries out there. 
Markets
The (Expected) Market Impact of the 2016 Election
With primary season upon us, investor attention is beginning to turn to the upcoming U.S. presidential election. 
Term
How Statistical Significance is Determined
If something is statistically significant, it’s unlikely that it happened by chance. 
Economics
3 Charts All Investors Should See
Given the abysmal start to the year, the defining question is whether this is another painful but temporary correction, or the start of a bear market.

What are some common financial sampling methods?
There are two areas in finance where sampling is very important: hypothesis testing and auditing. The type of sampling methods ... Read Full Answer >> 
What are the benefits of financial sampling?
Financial sampling allows auditors to approximate the rate of error within financial statements. For accounting purposes, ... Read Full Answer >> 
What is the criteria for a simple random sample?
Simple random sampling is the most basic form of sampling and can be a component of more precise, more complex sampling methods. ... Read Full Answer >> 
How can a representative sample lead to sampling bias?
A representative sample, like any other type of sample, by its very nature leads to a degree of sampling bias, or sampling ... Read Full Answer >> 
What are the advantages of using a simple random sample to study a larger population?
Simple random sampling is a method used to cull a smaller sample size from a larger population and use it to research and ... Read Full Answer >> 
What are the disadvantages of using a simple random sample to approximate a larger ...
Simple random sampling statistically measures a subset of individuals selected from a larger group or population to approximate ... Read Full Answer >>