Stratified Random Sampling


DEFINITION of 'Stratified Random Sampling'

A method of sampling that involves the division of a population into smaller groups known as strata. In stratified random sampling, the strata are formed based on members' shared attributes or characteristics. A random sample from each stratum is taken in a number proportional to the stratum's size when compared to the population. These subsets of the strata are then pooled to form a random sample.


Loading the player...

BREAKING DOWN 'Stratified Random Sampling'

The main advantage with stratified sampling is how it captures key population characteristics in the sample. Similar to a weighted average, this method of sampling produces characteristics in the sample that are proportional to the overall population. Stratified sampling works well for populations with a variety of attributes, but is otherwise ineffective, as subgroups cannot be formed.

  1. Representative Sample

    A subset of a statistical population that accurately reflects ...
  2. Durbin Watson Statistic

    A number that tests for autocorrelation in the residuals from ...
  3. Population

    The entire pool from which a statistical sample is drawn. The ...
  4. Weighted Average

    An average in which each quantity to be averaged is assigned ...
  5. Attribute Bias

    The tendency of stocks selected by a quantitative technique or ...
  6. Sampling Error

    A statistical error to which an analyst exposes a model simply ...
Related Articles
  1. Options & Futures

    An Introduction To Value at Risk (VAR)

    Volatility is not the only way to measure risk. Learn about the "new science of risk management".
  2. Investing

    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 subgroup’s ...
  3. Markets

    The Uses And Limits Of Volatility

    Check out how the assumptions of theoretical risk models compare to actual market performance.
  4. Bonds & Fixed Income

    Find The Highest Returns With The Sharpe Ratio

    Learn how to follow the efficient frontier to increase your chances of successful investing.
  5. Active Trading Fundamentals

    How To Convert Value At Risk To Different Time Periods

    Volatility is not the only way to measure risk. Learn about the "new science of risk management".
  6. Active Trading

    Modern Portfolio Theory: Why It's Still Hip

    See why investors today still follow this old set of principles that reduce risk and increase returns through diversification.
  7. Options & Futures

    Financial Concepts

    Diversification? Optimal portfolio theory? Read this tutorial and these and other financial concepts will be made clear.
  8. Mutual Funds & ETFs

    Top 3 Muni California Mutual Funds

    Discover analyses of the top three California municipal bond mutual funds, and learn about their characteristics, historical performance and suitability.
  9. Investing

    What is Descriptive Statistics?

    Descriptive statistics is the term applied to meaningful data analysis.
  10. Fundamental Analysis

    Create a Monte Carlo Simulation Using Excel

    How to apply the Monte Carlo Simulation principles to a game of dice using Microsoft Excel.
  1. How does stratified random sampling influence government policy decisions?

    Governments use various analytical techniques to examine the potential costs and benefits of policy options. One of those ... Read Full Answer >>
  2. How can I use systematic sampling with stratified sampling?

    Statistics offers different sampling methods for dealing with large populations; two common methods are systematic sampling ... Read Full Answer >>
  3. What are the best selection methods for creating a simple random sample?

    The best selection methods for selecting a simple random sample are the lottery method, using a random number table or having ... Read Full Answer >>
  4. What are the advantages and disadvantages of stratified random sampling?

    Researchers use stratified random sampling to obtain a sample population that best represents the entire population being ... Read Full Answer >>
  5. What are some examples of stratified random sampling?

    Simple random sampling is a sample of individuals that exist in a population; the individuals are randomly selected from ... Read Full Answer >>
  6. Is Colombia an emerging market economy?

    Colombia meets the criteria of an emerging market economy. The South American country has a much lower gross domestic product, ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Section 1231 Property

    A tax term relating to depreciable business property that has been held for over a year. Section 1231 property includes buildings, ...
  2. Term Deposit

    A deposit held at a financial institution that has a fixed term, and guarantees return of principal.
  3. Zero-Sum Game

    A situation in which one person’s gain is equivalent to another’s loss, so that the net change in wealth or benefit is zero. ...
  4. Capitalization Rate

    The rate of return on a real estate investment property based on the income that the property is expected to generate.
  5. Gross Profit

    A company's total revenue (equivalent to total sales) minus the cost of goods sold. Gross profit is the profit a company ...
  6. Revenue

    The amount of money that a company actually receives during a specific period, including discounts and deductions for returned ...
Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!