Investopedia

Continue to Site »

Simple Random Sample

Filed Under »
Dictionary Says

Definition of 'Simple Random Sample'

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.
Investopedia Says

Investopedia explains '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).

Articles Of Interest

  1.

    Find The Right Fit With Probability Distributions

    Discover a few of the most popular probability distributions and how to calculate them.

  2. Quants: The Rocket Scientists Of Wall Street

    Blend math, finance and computer skills to command a high - and well deserved - salary.

  3. Calculating The Means

    Learn more about the different ways you can calculate your portfolio's average return.

  4. R-Squared

    Learn more about this statistical measurement used to represent movement between a security and its benchmark.

  5. Mitigating Downside With The Sortino Ratio

    Differentiate between good and bad volatility with the Sortino Ratio.

  6. Quantitative Analysis Of Hedge Funds

    Hedge fund analysis requires more than just the metrics used to analyze mutual funds.

  7. Rule Of 72

    Learn more about this quick approximation that can determine roughly the number of years it'll take your money to double.

  8. How To Use Facebook As A Marketing Tool

    Facebook can be a viable marketing platform for your business. It can even earn you revenue.

  9. Weighted Average

    Learn how to weigh the relative importances of data points in a calculated average.

  10. What is the difference between weighted average shares outstanding and basic weighted average shares?

    Outstanding shares refers to stock that is currently held by investors, including shares held by the public, and restricted shares that are owned by company officers and insiders. The number ...
comments powered by Disqus
Marketplace
Hot Definitions

  1. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  2. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  3. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  4. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  5. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  6. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.
Trading Center