What is a 'Sampling Error'
A sampling error is a statistical error to which an analyst exposes a model simply because he or she is working with sample data rather than population or census data. Using sample data presents the risk that results found in an analysis do not represent the results that would be obtained from using data involving the entire population from which the sample was derived.
BREAKING DOWN 'Sampling Error'
The use of a sample relative to an entire population is often necessary for practical and/or monetary reasons. Although there are likely to be some differences between sample analysis results and population analysis results, the degree to which these can differ is not expected to be substantial.
Methods of reducing sampling error include increasing the sample size and ensuring that the sample adequately represents the entire population.

Sampling Distribution
A probability distribution of a statistic obtained through a ... 
Central Limit Theorem  CLT
A statistical theory that states that given a sufficiently large ... 
Population
The entire pool from which a statistical sample is drawn. The ... 
Sample Size Neglect
Sample size neglect occurs when an individual infers too much ... 
Simple Random Sample
A subset of a statistical population in which each member of ... 
Representative Sample
A subset of a statistical population that accurately reflects ...

Fundamental Analysis
Explaining Standard Error
Standard error is a statistical term that measures the accuracy with which a sample represents a population. 
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. 
Economics
What is Systematic Sampling?
Systematic sampling is similar to random sampling, but it uses a pattern for the selection of the sample. 
Active Trading Fundamentals
Hypothesis Testing in Finance: Concept & Examples
When you're indecisive about an investment, the best way to keep a cool head might be test various hypotheses using the most relevant statistics. 
Economics
Understanding Statistics
Statistics provide the means to analyze data and then summarize it into a numerical form. 
Markets
Using Historical Volatility To Gauge Future Risk
Use these calculations to uncover the risk involved in your investments. 
Mutual Funds & ETFs
How Vanguard Index Funds Work
Learn how Vanguard index funds work. See how the index sampling technique allows Vanguard to charge low expense ratios that can save investors money. 
Term
How Statistical Significance is Determined
If something is statistically significant, itâ€™s unlikely that it happened by chance. 
Investing News
3 Reasons Tracking Error Matters
Discover three ways investors can use tracking error to measure performance for a mutual fund or ETF, whether indexed or actively managed. 
Economics
What is the Retail Sales Report?
The retail sales report is a measurement of the goods that retailers sell based on a sampling of different stores.

What percentage of the population do you need in a representative sample?
Learn about representative samples and how they are used in conjunction with other strategies to create useful data with ... Read Answer >> 
What is the difference between systematic sampling and cluster sampling?
Learn about the differences between systematic sampling and cluster sampling, including how the samples are created for each ... Read Answer >> 
What's the difference between a representative sample and a random sample?
Explore the differences between representative samples and random samples, and discover how they are often used in tandem ... Read Answer >> 
What's the difference between a representative sample and an unbiased sample?
Discover how the different techniques used to select representative samples and unbiased samples are often exploited and ... Read Answer >> 
What are some common financial sampling methods?
Read about the differences between various common financial sampling methods for financial analysts, statisticians, marketers ... Read Answer >> 
How do researchers ensure that a simple random sample is an accurate representation ...
Learn which methods researchers employ to ensure that a simple random sample best approximates the larger population being ... Read Answer >>