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Exercises · Q9

Q.Define sampling error and non-sampling error. Give one example of each, and state one method commonly used to reduce each type of error.

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Sampling Error is the error that arises solely because a sample, rather than the entire population, is studied — it is the difference between a sample statistic (such as xˉ\bar{x}) and the true population parameter (such as μ\mu) that a full census would have revealed. Example: if the true average monthly sales of 400 outlets is μ=₹50,000\mu = ₹50{,}000, but a sample of 40 outlets gives xˉ=₹47,000\bar{x} = ₹47{,}000, the sampling error is ∣47,000−50,000∣=₹3,000|47{,}000 - 50{,}000| = ₹3{,}000. It exists only in the sample method (a census has none), and it can be reduced by increasing the sample size or by using a more efficient design such as stratified sampling. …

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