Sampling

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Control

    1. The use of power to influence an outcome. For example, working ...
  2. Current Population Survey

    A statistical survey that is performed by the U.S. Census Bureau ...
  3. Quintiles

    A statistical value of a data set that represents 20% of a given ...
  4. Sampling Error

    A statistical error to which an analyst exposes a model simply ...
  5. Normal Distribution

    A probability distribution that plots all of its values in a ...
  6. Central Limit Theorem - CLT

    A statistical theory that states that given a sufficiently large ...
Related Articles
  1. Consumer Confidence: A Killer Statistic
    Retirement

    Consumer Confidence: A Killer Statistic

  2. 5 Ways To Measure Mutual Fund Risk
    Mutual Funds & ETFs

    5 Ways To Measure Mutual Fund Risk

  3. Using Historical Volatility To Gauge ...
    Markets

    Using Historical Volatility To Gauge ...

  4. Random Reinforcement: Why Most Traders ...
    Active Trading

    Random Reinforcement: Why Most Traders ...

comments powered by Disqus
Hot Definitions
  1. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  4. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  5. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
Trading Center