CHAPTER 1

INTRODUCTION TO STATISTICS
Statistics is widely used in almost all institutions for examples business,
industrial, medical, engineering, public administration, sciences and computer - that
required to make decisions on the basis of empirical data. The correct usage of
statistical technique will enable the decision maker to extract useful conclusion from
a set of data.
1.1WHAT IS STATISTICS?
Statistics is a science of collecting, simplifying and describing data as well as
making inferences (drawing conclusion) based on the analysis of data.
Two types of statistics
a. Descriptive statistics
! study dealing with a set of procedures of collecting, summari"ing and
presenting data in a con#enient and informati#e way. $t uses graphical
techniques such as charts, graphs and tables to present data, and
numerical techniques such as a#erages and percentages to summari"e
the data.
b. Inferential Statistics
! study that concern with making a decision or arri#ing at a conclusion
about the population of interest based on the properties obtain from a
sample.
Some %asics &efinitions
i. Eleent !E"periental Unit#
There are ob'ects (people or thing) on which measurement is taken.
ii. P$p%lati$n
The set or collection of all possible obser#ations of some specific
characteristic.
iii. Saple
! subset selected from the population.
iv. Cens%s
!n attempt to measure e#ery item in the population of interest.
v. Saple S%rve&
! study on some selected portion of the population.
vi. 'ariables
! characteristic of the population that we want to study.
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STATISTICS FOR BUSINESS AND ACCOUNTING
vii. Data
The characteristic #alue of an element.
viii. (%antitative )ata ) data in numerical form such as income, weight,
height, si"e and age.
i". Discrete *%antitative )ata ) data that can be measured precisely. *ne
way of obtaining discrete data is by counting. +or examples the number
of students in the library, the number of components produced from an
assembly line. This type of data can also be obtained from situations
where counting is not in#ol#ed. +or examples the shoe si"es of a
sample of students , -, (. / , 0 / 1 etc2, the monthly income of a
sample of lectures.
". C$ntin%$%s *%antitative )ata ) data that can only be approximated to
some degree of accuracy using measuring de#ices. 3xamples of
continuous data are dimensions such as lengths and heights4 weights4
areas and #olumes4 temperatures4 times.
"i. (%alitative variable ) data in non-numeric form such as gender, race,
religion, color of skin, le#el of education, brand of shirts, and types of
occupation.
"i. Paraeter
5haracteristic of a population.
"ii. Statistic
5haracteristic of a sample.
The scales, on which a #ariable is measured, are often classified as nominal,
ordinal, inter#al and ratio. (This measurement specification is only rele#ant in
statistical package used in computer to analy"e a set of data)
"iii. N$inal scale
! nominal scale is used only for identification or categories ) (e.g. status
in the work force, place of birth, hair color4 e.g. (67ahang, 86Selangor
etc.)
"iv. Or)inal scale
9ariables whose #alues indicate only order or ranking are measured on
an ordinal scale ) (e.g. 'ob satisfaction le#el, 'ob importance4 i.e. rating
(6#ery satisfied, rating 86moderately satisfied). This rating doesn:t mean
that rating ( is twice as satisfied as ranking 8.
"v. Interval+Rati$ scale
9ariables whose #alues must be numeric ) (e.g. income, age, years of
education). The #alues can be compared to one another.
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CHAPTER 1: INTRODUCTION TO STATISTICS
1., SOURCES O- DATA
Sources of data can be classified into primary and secondary data.
i. Priar& )ata
+irst hand data or raw data.
The inter#iewer himself will carry out the research and obtained the data
directly from his respondents.
Advantages
7rimary data are more accurate, reliable and up-to-date.
$f the data needed by decision makers are not a#ailable from other
sources (secondary data) then primary data has to be gathered.
7rimary sources usually explain how the facts and figures were gathered
and what limitations exist to their use.
7rimary data usually satisfies the ob'ecti#es of a research.
Disadvantages
&ata gathered from primary sources are #ery costly, time consuming and
requires a lot of man power
ii. Sec$n)ar& )ata
7rimary data that has been collected, processed and published for the
use of other people. Secondary data can be obtained from newspapers,
economic reports, annual report of companies, statistical abstract and
other sources.
Advantages
;equire less time, cost, and effort.
!lways a#ailable.
Disadvantages
Secondary data may contain errors due to error in printing and also due to
transcription from the primary sources.
$ndi#iduals who use secondary data do not know the conditions under
which the data were collected and summari"ed. Therefore, the intended
user must first determine whether the data is rele#ant or not.
Secondary data may not be able to fulfill the ob'ecti#es of a research.
1.. /ETHODS O- CO00ECTIN1 DATA
i. Direct intervie2in3
Trained inter#iewer will get the information from the respondents
depending on the ob'ecti#e of the sur#ey and based on the
questionnaires.
$t is commonly used in marketing research and social sur#ey.
Advantages
*btained higher percentage of response than other methods.
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STATISTICS FOR BUSINESS AND ACCOUNTING
There are many respondents, which are co-operati#e than non co-
operati#e.
This approach allows the inter#iewer to clarify any terms that aren:t
understood by the respondent, and it results in a high percentage of
usable returns.
$nter#iewer can detect whether the respondent is gi#ing an accurate
answer from their characteristics.
The inter#iewer can ask a lot of questions.
The inter#iewer can note specific reactions and the en#ironment
surrounding the respondent.
Disadvantages
The cost is high (pay inter#iewers salary, tra#eling etc).
$nter#iewer must be trained so that the data recei#ed is accurate and does
not show biasness.
3rror may occur in recording statements= response.
$nter#iewer should be super#ised to ensure that he has actually contacted
the proper respondent, and that his beha#ior was appropriate so that he
did not fill in the questionnaire himself.
This approach can be time consuming.
ii. Telep4$ne intervie2
$t is possible to use telephone inter#iew as a personal inter#iew. .
$t is conducted by telephone ser#ices line and respondents are ask to
answer the questionnaire.
Advantages
>esser time is needed to obtain the information.
The in#estigator can also monitor the inter#iews to follow the specified
procedure.
>ess expensi#e than the personal inter#iew owing to the elimination of the
tra#eling expenses.
Disadvantages
>imitation is that we restrict oursel#es to only among the telephone users.
*nly short questions can be asked.
The response rate is lower than the personal inter#iew.
$nter#iewer has to find the correct time to inter#iew the respondents.
iii. /aile) *%esti$nnaires
?uestionnaires are mailed to the respondent included from the sample.
! carefully constructed questionnaire will encourage participation by the
respondents.
&oes not require inter#iewers.
Advantages
5on#enience since wider region can be co#ered.
3ntails a relati#ely lower cost.
$nformation recei#ed from the respondents is free from the biasness of the
in#estigator.
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CHAPTER 1: INTRODUCTION TO STATISTICS
Ao prior arrangements necessary to conduct the sur#ey.
$nformation may be elicited or sensiti#e which would be embarrassing to
obtain in face-to-face inter#iew.
3nough time is pro#ided to the respondents to complete the
questionnaires.
Disadvantages
The lowest rate of response, sometimes less than 8.B, since we ha#e
the least contact with the respondents. $t is always necessary to contact
nonrespondents to the first mailing through follow-up letters. +ree gifts
and financial incenti#es may increase the rate a little bit.
;espondents may not return the questionnaire within the specified time.
;espondents might not understand the question asked. $f they were
helped to answer the questionnaire, this may result in non-representati#e
sample.
Ao one can assist the respondents in answering the questionnaire.
Therefore the respondent may become frustrated and not bother
completing or returning the questionnaire.
The respondent could read the whole questionnaire before he starts filling
it in therefore his responses are not independent.
!gencies that conduct sur#eys ha#e found that persons are more likely to
respond to mail questionnaire that has an attracti#e, professional appearance
rather than to one that has a cheap and unattracti#e appearance.
Some questionnaires do en'oy high initial response rates. *ne example is
questions asked on warranty cards that must be returned to the manufacturer
for warranty co#erage of a new product. The response rate to go#ernment
questionnaires tends to be much greater than those distributed by pri#ate
sector. ?uestionnaires that are distributed to the members of an
affiliation=association also en'oy high response rate since they ha#e a
common interest among the membership.
iv. Direct $bservati$n
*bser#ation is used in work-study and in organi"ation.
! quality control exercise in a factory making light bulbs in which the data
are collected by taking bulbs from the production line and obser#ing the
number of hours they last.
Csed by social scientists in learning the habits and customs of
communities.
Advantages
$t records what actually happened rather than what people say would
happen.
The data are not affected by the respondents4
Disadvantages
The obser#er need to be highly skilled and unbiased
The obser#er will not get an accurate data if the respondents know that
they are being obser#ed.
7resent obser#ation tells us nothing about past or future happenings.
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STATISTICS FOR BUSINESS AND ACCOUNTING
1.5 DESI1NIN1 A (UESTIONNAIRE
! questionnaire is a written instrument that contains a series of questions or
items that attempt to collect information on a particular sub'ect.
?uestionnaires may be handed out personally by the researcher to his
respondents or may be posted the mail.
The researchers should construct a questionnaire to encourage participation
from the respondents. Se#eral steps to be considered when designing a
questionnaire are listed below
a. Specify the information to be collected. The source of information
should be from the ob'ecti#es and specific aims of the sur#ey. Therefore,
the purpose of the sur#ey should always keep in mind.
b. ?uestionnaire should be as short as possible. ! long list of
questions may lead boredom and incorrect answers.
c. ?uestions must be kept simple and phrased to imply the same
meaning to all respondents. Two simple questions are better than a
single complicated one.
d. !#oid leading questions such as
E&on:t you think the courts are too harsh with drug traffickerF:. These
questions suggest the answer the inter#iewer want s to hear, and the
respondents may agree with the inter#iewer because that is the easiest
response.
e. ?uestions should be organi"ed systematically and should ha#e
some kind of natural logical sequence that the respondent can
appreciate. This will help to sustain interest.
f. !#oid questions that need calculation.
g. !#oid questions on sensiti#e issue or may be pri#ate to the
respondents.
1.6 SA/P0IN1
Gany times it is not feasible or practical to study an entire population. Thus,
inference about a population can be made based on information contained
from a sample.
A)vanta3es $f saplin3
a. The more data to be handled, the higher the costs will likely be. Thus,
sampling will reduced the costs.
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CHAPTER 1: INTRODUCTION TO STATISTICS
b. Sampling can produce adequate information in a shorter period (reduce
time spent)
c. Sample can pro#ide information that:s almost as accurate as that
resulting from a complete census.
d. Cse for destructi#e test in which may destroy sample- employed in
testing product quality.
e. !n inter#iewer can gi#e better attention due to the small number of
respondentHs sur#ey.
f. ;educe the non-sampling error due to a small number of respondents.
1.7 TER/INO0O1IES IN SA/P0IN1
a. Pr$babilit& Saple !Ran)$ Saple#
! sample in which e#ery element in the population has a known
probability of being included in the sample is called random sample.
(3xamples are simple random sampling, systematic sampling, stratified
sampling, cluster sampling and multi-stage sampling)
b. N$n8Pr$babilit& Saple !N$n8Ran)$ Saple#
! sample that does not ha#e the feature of probability sample is called
non-random sample. (3xamples are ?uota sampling, Iudgemental and
5on#enient Sampling)
c. Saplin3 frae
! list of all population members is called sampling frame. The list should
be complete and update. ! sampling frame could be the names of all full-
time students of the college, or the names of all companies, which ha#e a
stock exchange listing in J>S3.
). Saplin3 Unit
The elements listed in the frame.
e. Saple S%rve& )esi3n
The procedure for selecting the sample.
f. Pil$t St%)&
! pilot sur#ey is small exploratory exercise conducted on a small number
of respondents before the actual sur#ey is done. The ob'ecti#es are
i. to impro#e the questionnaires.
ii. to identify the problems that occur during the sur#ey.
iii. to predict the cost, time and workforce needed.
i#. to re#eal deficiencies in the sampling frame and in the sample design.
#. to indicate as to the likely response rate in a larger sur#ey.
3. Saplin3 err$r
3rror that arises because a sample cannot gi#e complete information on a
population. 5arefully designing the sur#ey design and choosing the
correct sampling technique can reduce and eliminate error.
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STATISTICS FOR BUSINESS AND ACCOUNTING
4. N$n8Saplin3 Err$r
3rrors that occur from the sur#ey due to non-response from respondent,
faulty measuring de#ice, and respondents gi#ing false information or
errors in writing and analy"ing data are known as non-sampling error.
1.9 SA/P0IN1 TECHNI(UE
5hoosing the Ebest method: to select the sample and the sample must be
representati#e of the population.
1.9.1 Siple Ran)$ Saplin3 !SRS#
! sample is selected in such a way that e#ery item in a population has an
equal chance to be selected.
This method in#ol#es in the numbering of e#ery indi#idual in the
population.
S;S is used when the items are from a group of the same characteristic.
S;S is not suitable if the population is di#ided into se#eral heterogeneous
groups because biasness may occur.
Low to select the sampleF
Small population (n M <..) - Csing Hlottery methodH where each item will be
gi#en a number on a piece of paper and place in a box. Aumbers will be
selected one at a time.
>arge population (n <..) - using random number table.
Advantages
free from systematic selection bias.
all elements ha#e equal chance to be selected.
Disadvantages:
impossible to handle the data due to non-a#ailability of
sampling frame.
tedious for #ery large population.
no guarantee that the resulting sample is unbiased i.e. a #ery
unrepresentati#e sample may result.
$t could be expensi#e and difficult of getting information if the
samples selected are indi#iduals who are widely scattered.
1.9., S&steatic Saplin3
a random sample in which the items are selected from the population at a
Euniform inter#al: of a listed order pro#iding that there is no regularity
within the list.
systematic sampling should ha#e a complete sampling frame.
method - using equal inter#al method or constant skip method $ 6 A = n
where $ 6 inter#al, A 6 population, n 6 sample si"e.
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CHAPTER 1: INTRODUCTION TO STATISTICS
e.g. A 6 <.. and n 6 <. , $ 6 <..=<. 6 (.
for e#ery (. item, only one item is selected.
the first item will be selected at random between ( to (., e.g. no D.
the next item will be D N (., (D N (.1.
D, (D, 8D, <D18OD (until we reach the sample si"e of <.)
Advantages:
easier to implement than S;S, only the first item is chosen randomly.
Disadvantages:
problem can arise if there is regularity within the list.
impossible due to non-a#ailability of sampling frame.
it does not fully meet the criterion of randomness since some of the
samples of the gi#en si"e ha#e "ero probability of being chosen.
1.9.. Stratifie) Saplin3
This method is used if the population is di#ided into suitable sub-
populations where between groups are heterogeneous and within groups
are homogenous.
!ll the groups will be selected and item from each group will be selected
randomly using simple random sampling or systematic sampling.
The same proportion of each group will be represented in correct
proportion using 7roportional Stratified Sampling - will increase the
accuracy of the sampling technique
=
i
i
A
n x n
A
where n
i
6 sample si"e needed for each group
A
i
6 population si"e for each group
A 6 population si"e
n 6 sample si"e
e.g. ! lecturer is interested to conduct a research on reading habits among
students 7art $$ at 5erdas 5ollege. Select a sample of 0. students from a
population of 8.. students.
Proups
i
A
n x
A
A
6 n
i
i
! 8. 0
% 0. (-
5 -. 8@
& @. (8
Total 8.. 0.
Advantages:
The sample will be more representati#e of the populations.
!ll the groups will be selected with equal proportion and items from each
group has an equal chance to be selected.
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STATISTICS FOR BUSINESS AND ACCOUNTING
Disadvantages:
&ifficulties in selecting the samples if the sampling frame is not
a#ailable.
$f the stratification is not done correctly, the results will be not reliable.
1.9.5 Cl%ster Saplin3
$t is used if the population is di#ided into sub population where between
groups are homogenous and within groups are heterogeneous
The groups will be selected at random
!ll the items in each group will be chosen
e.g. consumer sur#ey in large cities often employ 5luster Sampling
Advantage:
;educe cost, time and workforce since only a few clusters formed are
selected as sample.
Disadvantages:
The sample might not be representati#e of the population as a whole
since nothing is known of the cluster not sampled.
$t is preferable to di#ide the population into a large number of small
clusters than a small number of large clusters.
1.9.6 /%ltista3e Saplin3
This method can cut down the sur#ey area and reduce the sur#ey costs
from #ery large population
e.g. an immuni"ation sur#ey of schoolchildren in a particular state might
entail D stages.
Advantage:
;educe cost, time and workforce for #ery large population.
Disadvantage:
Ao assurance of representation for a #ery large population.
1.9.7 (%$ta Saplin3
Samples are selected on the basis of specific guidelines about which
items and = or how many should be drawn.
?uotas are set and inter#iewer is allowed to select sample according to
quota.
$t is not a method of random sampling and no sampling frame is needed.
3xample
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CHAPTER 1: INTRODUCTION TO STATISTICS
!n account officer is interested in knowing the types of people who in#ested
at the Juala >umpur Stock 3xchange (J>S3) and the kinds of stock they
in#ested in. Le selected respondents by inter#iewing twenty persons per day
at a brokerage firm nearby for ten days. The races Galay, 5hinese, and
others are represented by @DB, D.B and DB respecti#ely. The inter#iews
were done between (.... a.m. till @... p.m.
This is a quota sampling because those selected as the samples are only
those who are at the brokerage firm between (.... a.m. till @... p.m. Those
who are not in the brokerage firm between those hours will not be selected as
samples.
Advantage:
Samples can be controlled for certain characteristics and this
method can be easily implemented.
Disadvantage:
;isk of inter#iewer bias is #ery high4 the inter#iewer can choose
the samples based on their interest.
1.9.9 :%)3eental Saplin3
The researcher:s 'udgement is used to decide which population items will
be included in the sample.
3xample
!ngkasa %oard of directors has decided to sample opinions of other
companies around the country regarding the economic forecast for next year.
The 5ompanyHs 7resident chooses those persons to be inter#iewed by
telephone.
This is a 'udgemental sample because the specific indi#iduals to be called
aren:t selected randomly4 rather, the 7resident:s 'udgement is used in the
selection process. $f the company president is experienced and personally
selects a representati#e group to a sample ) a good sample should result.
*n the other hand, if the 7resident talks only to friends who aren:t in a good
position to assess economic conditions, a misleading picture of the
company:s operating en#ironment could result.
Advantage:
good 'udgement will gi#e a good result.
Disadvantage
The sampler must use good 'udgement in choosing items to be
sampled.
1.9.; C$nvenient Saplin3
The most con#enient items are selected for the sample.
3xample
! market research class has decided to sample student opinion on se#eral
sub'ects for a class pro'ects. The team leader assigns each student a sample
of (. people and requests that inter#iews be completed in one week.
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STATISTICS FOR BUSINESS AND ACCOUNTING
This could be called a con#enience sample because each student will
presumably sample the (. most con#enience people in the absence of any
instructions.
Advantage:
choosing the samples that are most con#enient to you.
Disadvantage
a poor sample will likely result because no thought has
been gi#en to the nature of the population or to whether the sampling
team will be contacting students of #arious ages, ma'ors, places of
residence and so on.
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CHAPTER 1: INTRODUCTION TO STATISTICS
E"ercises
(. &efine each of the following terms
i. 5ensus ii. Sampling iii. 7ilot Sur#ey
8. &iscuss the differences between
i. $nferential Statistics and &escripti#e Statistics
ii. Statistic and 7arameter
iii. ?ualitati#e data and ?uantitati#e data
i#. &iscrete and 5ontinuous data
#. 7rimary data and Secondary data
#i. ;andom sample and non random sample
#ii. 5ensus and sample sur#ey
#iii. Sampling error and non-sampling error.
<. Pi#e three steps that should be considered when designing a questionnaire.
@. 7rimary data are usually preferred to secondary data because primary data is
more meaningful and reliable that secondary data, but why do we sometimes
use secondary dataF
D. State the sampling techniques used in each of the following cases
i. !n auditor auditing the financial standings of a department by selecting
e#ery fifth file in the cabinet.
ii. Students of a particular school is grouped according to their race. Then a
random sample from each race is selected.
iii. !n inter#iew selects anybody that passes his house to gather their #iew
about pri#ati"ation of institutes of higher learning.
i#. ! sociologist is interested in the mean income of households in an area of
flat houses. There are (8 blocks of flats in the area in which he chooses <
blocks at random. !ll the household s in the selected blocks are sur#eyed.
0. ! researcher intends to conduct a study concerning attitude and moti#ation
towards work among staff of Gaybank in Juala >umpur. The researcher has
obtained a complete list of names of all the staff. They are di#ided into sections
such as Ganagement, 5redit 5ontrol, 5redit, +unds and Qithdrawals and !udit.
The number of staff from each section differs.
$n order to reduce time, cost and workforce, the study will be carried out using
samples. 3ach staff is gi#en a number and a random sample is selected by
using random number table.
a. State the population in this sur#ey.
b. Qhat is the sampling technique used by the researchers in the abo#e
researchF
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STATISTICS FOR BUSINESS AND ACCOUNTING
c. $s the sample representati#e of the populationF State two problems that
may arise if data is collected using the method stated in the abo#e study.
d. State a more suitable sampling technique for the abo#e study and state
your reason.
e. State the #ariables to be measured.
f. State the most appropriate method of data collection and state two reasons
for choosing the method.
K. ! research was conducted to study the effecti#eness of E! computer for e#ery
home:. The study focused on dwellers= household of housing estates in town.
+i#e housing estates were randomly selected from a total of 0. housing
estates. 3#ery household from the selected housing estates was studied on the
effecti#eness of the campaign.
a. Qas the data collected by the researchers primary or secondary data and
state the reasons.
b. State the population for the abo#e study.
b. State the sampling frame of the study.
c. Qhat is the sampling technique used to select the household for the abo#e
researchF
d. 3xplain briefly how D housing estates can be selected from 0. housing if
the simple random sampling was employed.
e. 3xplain briefly how D housing estates can be selected from 0. housing
using systematic method.
f. Suggest the most appropriate data collection method for the abo#e study
and state 8 reasons for your choice.
g. State the #ariable of the abo#e study.
-. ! firm is interested to study the effect of tele#ision ad#ertisement in < regions
;egion R, S and T. ;egion R is an industrial region where large ma'ority of its
population are factory workers and ha#e school going children4 ;egion S is a
suburb where large ma'ority of its population are elderlies and ha#e adult
children and ;egion T is an interior region where population are engaged in
agriculture acti#ities.
+or selecting the sample, a list of head of household for each region is
arranged in alphabetical order. Samples of <., (. and 8. heads of household
for the industrial region, suburb and interior region were needed from the
population of heads of household of (D., 0. and -. units respecti#ely.

a. State the #ariable that we are interested in this study.
b. Qhat is the sampling frame of the abo#e study.
c. Aame the sampling method used in this study.
d. Pi#e two important criteria of the sampling method in U.
e. State the method of data collection most suitable for this study.
f. Pi#e two ad#antages of choosing the method in (e).
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CHAPTER 1: INTRODUCTION TO STATISTICS
g. $f the sample si"e in ;egion T is selected using systematic sampling,
explain how this is doneF
O. ! sampling frame consists of <... names of telephone subscribers in Juantan
area. The names are arranged alphabetically. ! sample si"e of (D. subscribers
was chosen from the sampling frame to estimate the a#erage monthly
payments per subscriber.
a. %riefly explain how to obtain a random sample of (D. using systematic
sampling.
b. Qhy is systematic sampling is the most appropriate sampling method here.
c. State the most appropriate method of data collection for the abo#e study.
d. Pi#e two reasons why you choose your method of data collection.
(.. The market researcher was interested in studying the effect of tele#ision
ad#ertisement in Galaysia. To obtain the data, questionnaires were mailed out
to selected respondents. The researcher uses a type of sampling to sa#e time
and money. +irst, he randomly selected D out of (< state and from each
selected state he obtain a list of districts. +inally, a sample of respondents from
each selected districts was chosen for the final sample. !t the end of the
sur#ey, he reali"ed that the response rate was #ery low.
a. Aame the type of sampling used.
b. Qhat was the method used in collecting data.
c. $n your opinion, why was the response rate #ery poorF Pi#e some
suggestion to impro#e the rate of response.
((. ! group of researchers plan to carry out a sur#ey on the repair workshops for
#ehicles in %andar I. These workshops can be categori"ed according to the
types of #ehicles being repaired.
T&pe $f 2$r<s4$p N%bers
%icycle workshop <D
Gotorcycle workshop D.
5ar workshop -D
Lea#y #ehicle workshop 8.
$n order to sa#e cost and time, they plan to sur#ey only -. of these workshops.
a. State the population of these sur#eyed.
b. State the required sampling frame.
c. Pi#e an example for each of these situations (the examples should related
to the abo#e study) (i) a question that will deri#e quantitati#e data4
(ii) a question that will deri#e qualitati#e data.
d. Qhich is the most appropriate sampling technique that may be used by the
researchersF Pi#e one reason for your answer.
e. %ased on your answer in (d), explain in detail how the sample may be
selected.
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STATISTICS FOR BUSINESS AND ACCOUNTING
f. Qhich is the most suitable method of data collectionF Pi#e two
ad#antages of this method.
(8. ! researcher was assigned to study the opinions of executi#es of a finance
company towards some new policies imposed to them. The company has 8-
branches throughout Galaysia. $n order to reduce expenses, time and labour,
only se#en branches will be selected at random. !ll executi#es from selected
branches will be inter#iewed.
a. State the population of study.
b. Qhat is the sampling technique used by the researcherF
c. 3xplain in detail how to choose K branches out of 8- branches.
d. State 8 ad#antages and 8 disad#antages of using the method of collecting
data in the abo#e study.
(<. &etermine whether the following #ariables is qualitati#e, quantitati#e discrete or
quantitati#e continuous
a. The number of skilled personnel in a factory.
b. 5omputer brands exhibited at the Gicro 5arni#al at 7QT5.
c. Time taken to ser#e a customer at a postal ser#ice.
d. $ncome of staffs in a firm.
(@. ! manager of an audit firm wishes to estimate the a#erage number of days of
#acation taken by the employees. The firm has 0 branches located throughout
the country. The following table shows the number of employees in each
branch
%ranch ! % 5 & 3 +
Ao. of employees (@. 8.. (8. (<. (0. 8D.
The manager then selects randomly a number of employees from each branch.
Le decides to select at random a total of 0.. employees from (... employees.
a. State the appropriate sampling frame for the abo#e study.
b. State the #ariable on interest in the abo#e study. $s it discrete or a
continuous #ariableF
c. Qhat is the sampling technique usedF Pi#e two ad#antages of using this
technique.
d. 5alculate the number of employees selected as samples from each
branch.
e. 3xplain briefly how to select samples from %ranch % using simple random
sampling method.
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