Systematic Sampling

Loading the player...

What is 'Systematic Sampling'

Systematic sampling is a type of probability sampling method in which sample members from a larger population are selected according to a random starting point and a fixed, periodic interval. This interval, called the sampling interval, is calculated by dividing the population size by the desired sample size. Despite the sample population being selected in advance, systematic sampling is still thought of as being random, provided the periodic interval is determined beforehand and the starting point is random.

BREAKING DOWN 'Systematic Sampling'

Because simply random sampling can be inefficient and time-consuming, statisticians turn to other methods, such as systematic sampling. Choosing a sample size through a systematic approach can be done quickly. For example, if you wanted to select a random group of 1,000 people from a population of 50,000 using systematic sampling, you would simply select every 50th person, since 50,000/1,000 = 50.

One risk that statisticians must take into account when conducting systematic sampling involves how the list used with the sampling interval is organized. If the population placed on the list is organized in a cyclical pattern that matches the sampling interval, the selected sample may be biased. For example, a company’s human resources department wants to pick a sample of employees and ask how they feel about company policies. Employees are grouped in teams of 20, with each team headed by a manager. If the list used to pick the sample size is organized with teams clustered together, the statistician risks picking only managers (or no managers at all) depending on the sampling interval.

RELATED TERMS
  1. Variance

    The spread between numbers in a data set, measuring Variance ...
  2. Durbin Watson Statistic

    A number that tests for autocorrelation in the residuals from ...
  3. Simple Random Sample

    A subset of a statistical population in which each member of ...
  4. Attribute Sampling

    A mathematical process used to analyze the characteristics of ...
  5. Normal Distribution

    A probability distribution that plots all of its values in a ...
  6. Probability Distribution

    A statistical function that describes all the possible values ...
Related Articles
  1. Fundamental Analysis

    How To Calculate Your Investment Return

    How much are your investments actually returning? Find out why the method of calculation matters.
  2. Investing Basics

    Breaking Down The Geometric Mean

    Understanding portfolio performance, whether for a self-managed, discretionary portfolio or a non-discretionary portfolio, is vital to determining whether the portfolio strategy is working or ...
  3. Economics

    What is Systematic Sampling?

    Systematic sampling is similar to random sampling, but it uses a pattern for the selection of the sample.
  4. Markets

    Using Historical Volatility To Gauge Future Risk

    Use these calculations to uncover the risk involved in your investments.
  5. Fundamental Analysis

    Calculating Covariance For Stocks

    Learn how to figure out how two stocks might move together in the future by calculating covariance.
  6. Options & Futures

    Trading The Odds With Arbitrage

    Profiting from arbitrage is not only for market makers - retail traders can find opportunity in risk arbitrage.
  7. Mutual Funds & ETFs

    5 Ways To Measure Mutual Fund Risk

    These statistical measurements highlight how to mitigate risk and increase rewards.
  8. Mutual Funds & ETFs

    Financial Advice With Zero Return

    Discover how a recent study indicates that many advisors do not increase investment returns.
  9. Forex Education

    Trading With Gaussian Models Of Statistics

    The entire study of statistics originated from Gauss and allowed us to understand markets, prices and probabilities, among other applications.
  10. Forex Education

    Reduce Your Risk With ICAPM

    Avoid unnecesary risks involved in CAPM calculations by also incorporating ICAPM into the mix.
RELATED FAQS
  1. When is it better to use systematic over simple random sampling?

    Learn when systematic sampling is better than simple random sampling, such as in the absence of data patterns and when there ... Read Answer >>
  2. What are some examples of ways that sensitivity analysis can be used?

    Understand the concept of sensitivity analysis and learn about the wide variety of disciplines to which it can be applied. Read Answer >>
  3. 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 >>
  4. 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 >>
  5. What are the advantages and disadvantages of using systematic sampling?

    Learn about the primary advantages and disadvantages of using a systematic sampling method when conducting research of a ... Read Answer >>
  6. Do plane tickets get cheaper closer to the date of departure?

    Read about when to buy flights. See how statistics can predict optimal pricing. Read about price volatility over time. Learn ... Read Answer >>
Hot Definitions
  1. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  2. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  3. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  4. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  5. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
  6. Economies Of Scale

    Economies of scale is the cost advantage that arises with increased output of a product. Economies of scale arise because ...
Trading Center