# Simple Random Sample

## What is a 'Simple Random Sample'

A simple random sample is a subset of a statistical population in which each member of the subset has an equal probability of being chosen. A simple random sample is meant to be an unbiased representation of a group. An example of a simple random sample would be a group of 25 employees chosen out of a hat from a company of 250 employees. In this case, the population is all 250 employees, and the sample is random because each employee has an equal chance of being chosen.

Next Up

## BREAKING DOWN 'Simple Random Sample'

A sampling error can occur with a simple random sample if the sample doesn't end up accurately reflecting the population it is supposed to represent. For example, in our simple random sample of 25 employees, it would be possible to draw 25 men even if the population consisted of 125 women and 125 men. For this reason, simple random sampling is more commonly used when the researcher knows little about the population. If the researcher knew more, it would be better to use a different sampling technique, such as stratified random sampling, which helps to account for the differences within the population (such as age, race or gender).

RELATED TERMS
1. ### Sampling

A process used in statistical analysis in which a predetermined ...
2. ### Systematic Sampling

A type of probability sampling method in which sample members ...
3. ### Stratified Random Sampling

A method of sampling that involves the division of a population ...
4. ### Sample

A subset containing the characteristics of a larger population. ...
5. ### Representative Sample

A subset of a statistical population that accurately reflects ...
6. ### Sampling Error

A statistical error to which an analyst exposes a model simply ...
Related Articles
1. Markets

### What is a Representative Sample?

In statistics, a representative sample accurately represents the make-up of various subgroups in an entire data pool.
2. Markets

### How to Use Stratified Random Sampling

Stratified random sampling is a technique best used with a sample population easily broken into distinct subgroups. Samples are then taken from each subgroup based on the ratio of the subgroupâ€™s ...
3. Investing

### Explaining Standard Error

Standard error is a statistical term that measures the accuracy with which a sample represents a population.
4. Retirement

### Birch Box Review: Is It Worth It?

Learn more about the convenience of the subscription beauty box industry, and discover why the Birchbox company in particular has become so popular.

### 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.
6. Markets

### Financial Markets: Random, Cyclical Or Both?

Are the markets random or cyclical? It depends on who you ask. Here, we go over both sides of the argument.
7. Investing

### Understanding the Random Walk Theory

The random walk theory states stock prices are independent of other factors, so their past movements cannot predict their future.

### Viewing The Market As Organized Chaos

Find out how a cat and a ladybug prove markets are both random and efficient.
9. Investing

### What Are The Odds Of Scoring A Winning Trade?

Just because you're on a winning streak doesn't mean you're a skilled trader. Find out why.
10. Investing

### Monte Carlo Simulation With GBM

Learn to predict future events through a series of random trials.
RELATED FAQS
1. ### What are the best selection methods for creating a simple random sample?

Discover some of the methods that researchers and pollsters utilize to select a simple random sample from a population group ... Read Answer >>
2. ### What are the advantages of using a simple random sample to study a larger population?

Learn how simple random sampling works and what advantages it offers over other sampling methods when selecting a research ... Read Answer >>
3. ### What are the disadvantages of using a simple random sample to approximate a larger ...

Learn what a simple random sample is, how researchers use it as a statistical tool and the disadvantages it carries when ... Read Answer >>
4. ### 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 >>
5. ### What is the difference between a simple random sample and a stratified random sample?

Learn about the differences between simple random sampling and stratified random sampling, and learn about the advantages ... Read Answer >>
6. ### 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 >>
Hot Definitions
1. ### Sell-Off

The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
2. ### Brazil, Russia, India And China - BRIC

An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
3. ### Brexit

The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
4. ### Underweight

1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
5. ### Russell 3000 Index

A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
6. ### Enterprise Value (EV)

A measure of a company's value, often used as an alternative to straightforward market capitalization. Enterprise value is ...