MASTERS IN ACCOUNTING AND FINANCE

SUBJECT - RESEARCH METHODOLOGY FACULTY NAME – DR. ASHWINI BAGKAR

MS. SWETA PATEL

Module 3

1. What is sampling? Explain its types/methods/ techniques.

Sampling is an essential part of any research project. The right sampling method can make or break the
validity of your research, and it’s essential to choose the right method for your specific question. In this
article, we’ll take a closer look at some of the most popular sampling methods and provide real-world
examples of how they can be used to gather accurate and reliable data.

► Probability sampling: Probability sampling is a sampling technique where a researcher selects a

few criteria and chooses members of a population randomly. All the members have an equal
opportunity to participate in the sample with this selection parameter.
► Non-probability sampling: In non-probability sampling, the researcher randomly chooses
members for research. This sampling method is not a fixed or predefined selection process. This
makes it difficult for all population elements to have equal opportunities to be included in a
sample.

Probability Sampling

a. Simple random sampling: One of the best probability sampling techniques that helps in saving time
and resources is the Simple Random Sampling method. It is a reliable method of obtaining information
where every single member of a population is chosen randomly, merely by chance. Each individual has
the same probability of being chosen to be a part of a sample.

For example, in an organization of 500 employees, if the HR team decides on conducting team-building
activities, they would likely prefer picking chits out of a bowl. In this case, each of the 500 employees has
an equal opportunity of being selected.
b. Cluster sampling: Cluster sampling is a method where the researchers divide the entire population
into sections or clusters representing a population. Clusters are identified and included in a sample
based on demographic parameters like age, sex, location, etc. This makes it very simple for a survey
creator to derive effective inferences from the feedback.

For example, suppose the United States government wishes to evaluate the number of immigrants living
in the Mainland US. In that case, they can divide it into clusters based on states such as California, Texas,
Florida, Massachusetts, Colorado, Hawaii, etc. This way of conducting a survey will be more effective as
the results will be organized into states and provide insightful immigration data.

c. Systematic sampling: Researchers use the systematic sampling method to choose the sample members
of a population at regular intervals. It requires selecting a starting point for the sample and sample size
determination that can be repeated at regular intervals. This type of sampling method has a predefined
range; hence, this sampling technique is the least time-consuming.

For example, a researcher intends to collect a systematic sample of 500 people in a population of 5000.
He/she numbers each element of the population from 1-5000 and will choose every 10th individual to
be a part of the sample (Total population/ Sample Size = 5000/500 = 10).

d. Stratified random sampling: Stratified random sampling is a method in which the researcher divides
the population into smaller groups that don’t overlap but represent the entire population. While
sampling, these groups can be organized, and then draw a sample from each group separately.

For example, a researcher looking to analyze the characteristics of people belonging to different annual
income divisions will create strata (groups) according to the annual family income. Eg – less than
$20,000, $21,000 – $30,000, $31,000 to $40,000, $41,000 to $50,000, etc. By doing this, the researcher
concludes the characteristics of people belonging to different income groups. Marketers can analyze
which income groups to target and which ones to eliminate to create a roadmap that would bear fruitful
results.

Non-Probability Sampling

a. Convenience sampling: This method depends on the ease of access to subjects such as surveying
customers at a mall or passers-by on a busy street. It is usually termed as convenience sampling because
of the researcher’s ease of carrying it out and getting in touch with the subjects. Researchers have nearly
no authority to select the sample elements, and it’s purely done based on proximity and not
representativeness. This non-probability sampling method is used when there are time and cost
limitations in collecting feedback. In situations with resource limitations, such as the initial stages of
research, convenience sampling is used.

For example, startups and NGOs usually conduct convenience sampling at a mall to distribute leaflets of
upcoming events or promotion of a cause – they do that by standing at the mall entrance and giving out
pamphlets randomly.

b. Judgmental or purposive sampling: Judgmental or purposive samples are formed at the researcher’s
discretion. Researchers purely consider the purpose of the study, along with the understanding of the
target audience. For instance, when researchers want to understand the thought process of people
interested in studying for their master’s degree. The selection criteria will be: “Are you interested in
doing your masters in …?” and those who respond with a “No” are excluded from the sample.

c. Snowball sampling: Snowball sampling is a sampling method that researchers apply when the subjects
are difficult to trace. For example, surveying shelterless people or illegal immigrants will be extremely
challenging. In such cases, using the snowball theory, researchers can track a few categories to interview
and derive results. Researchers also implement this sampling method when the topic is highly sensitive
and not openly discussed—for example, surveys to gather information about HIV Aids. Not many victims
will readily respond to the questions. Still, researchers can contact people they might know or volunteers
associated with the cause to get in touch with the victims and collect information.

d. Quota sampling: In Quota sampling, members in this sampling technique selection happens based on
a pre-set standard. In this case, as a sample is formed based on specific attributes, the created sample
will have the same qualities found in the total population. It is a rapid method of collecting samples.

2. What is data collection? Explain the ways/ sources to collect primary data and secondary data.

Data is a collection of measurements and facts and a tool that help an individual or a group of individuals
to reach a sound conclusion by providing them with some information. It helps the analyst understand,
analyze, and interpret different socio-economic problems like unemployment, poverty, inflation, etc.
Besides understanding the issues, it also helps in determining the reasons behind the problem to find
possible solutions for them. Data not only includes theoretical information but some numerical facts too
that can support the information. The collection of data is the first step of the statistical investigation and
can be gathered through two different sources, namely, primary sources and secondary sources.

Sources of Collection of Data

► Primary Sources

It is a collection of data from the source of origin. It provides the researcher with first-hand quantitative
and raw information related to the statistical study. In short, the primary sources of data give the
researcher direct access to the subject of research. For example, statistical data, works of art, and
interview transcripts.

► Secondary Sources

It is a collection of data from some institutions or agencies that have already collected the data through
primary sources. It does not provide the researcher with first-hand quantitative and raw information
related to the study. Hence, the secondary source of data collection interprets, describes, or synthesizes
the primary sources. For example, reviews, government websites containing surveys or data, academic
books, published journals, articles, etc.
Primary Sources

a. Direct Personal Investigation: As the name suggests, the method of direct personal investigation
involves collecting data personally from the source of origin. In simple words, the investigator makes
direct contact with the person from whom he/she wants to obtain information. This method can attain
success only when the investigator collecting data is efficient, diligent, tolerant and impartial. For
example, direct contact with the household women to obtain information about their daily routine and
schedule.

b. Indirect Oral Investigation: In this method of collecting primary data, the investigator does not make
direct contact with the person from whom he/she needs information, instead, they collect the data
orally from some other person who has the necessary required information. For example, collecting data
of employees from their superiors or managers.

c. Information from Local Sources or Correspondents: In this method, for the collection of data, the
investigator appoints correspondents or local persons at various places, which are then furnished by
them to the investigator. With the help of correspondents and local persons, the investigators can cover
a wide area.

d. Information through Questionnaires and Schedules: In this method of collecting primary data, the
investigator, while keeping in mind the motive of the study, prepares a questionnaire. The investigator
can collect data through the questionnaire in two ways:

e. Mailing Method: This method involves mailing the questionnaires to the informants for the collection
of data. The investigator attaches a letter with the questionnaire in the mail to define the purpose of the
study or research. The investigator also assures the informants that their information would be kept
secret, and then the informants note the answers to the questionnaire and return the completed file.

f. Enumerator’s Method: This method involves the preparation of a questionnaire according to the
purpose of the study or research. However, in this case, the enumerator reaches out to the informants
himself with the prepared questionnaire. Enumerators are not the investigators themselves; they are the
people who help the investigator in the collection of data.

a. Published Sources
i. Government Publications: Government publishes different documents which consists of different
varieties of information or data published by the Ministries, Central and State Governments in India as
their routine activity. As the government publishes these Statistics, they are fairly reliable to the
investigator. Examples of Government publications on Statistics are the Annual Survey of Industries,
Statistical Abstract of India, etc.

ii. Semi-Government Publications: Different Semi-Government bodies also publish data related to health,
education, deaths and births. These kinds of data are also reliable and used by different informants.
Some examples of semi-government bodies are Metropolitan Councils, Municipalities, etc.

iii. Publications of Trade Associations: Various big trade associations collect and publish data from their
research and statistical divisions of different trading activities and their aspects. For example, data
published by Sugar Mills Association regarding different sugar mills in India.

iv. Journals and Papers: Different newspapers and magazines provide a variety of statistical data in their
writings, which are used by different investigators for their studies.

v. International Publications: Different international organizations like IMF, UNO, ILO, World Bank, etc.,
publish a variety of statistical information which are used as secondary data.

vi. Publications of Research Institutions: Research institutions and universities also publish their research
activities and their findings, which are used by different investigators as secondary data. For example
National Council of Applied Economics, the Indian Statistical Institute, etc.

b. Unpublished Sources

Another source of collecting secondary data is unpublished sources. The data in unpublished sources is
collected by different government organizations and other organizations. These organizations usually
collect data for their self-use and are not published anywhere. For example, research work done by
professors, professionals, teachers and records maintained by business and private enterprises.

3. What are the factors affecting data collection?

Data collection can be negatively affected by factors such as bias, use of language, ethics, cost, time and
timing, privacy issues, and cultural sensitivity.

Problem What it means Example

Bias The question influences responses in favour of, Suppose a person asks: Don’t you think the
or against the topic of the data collection. price of a movie ticket is too high?This
person has a bias against the current ticket
price, and the bias influences how the survey
question is written.
Use of Use of Language The use of language in a If you ask: Don’t you think the price of a
Language question could lead people to give a particular movie ticket is too high?,the question may
answer lead people to answer yes. A better question
would be: Do you think the price of a movie
ticket is too high, too low, or fair?
Timing When the data are collected could lead to A survey is conducted to find opinions on the
particular results. need for a vehicle to have winter tires. The
 results may be different if the survey is
conducted in August instead of February.
Privacy If the topic of the data collection is personal, a People may not want to participate in a study
person may not want to participate or may give on weight if it means stepping on a scale in
an untrue answer on purpose. Anonymous front of other people.
surveys may help
Cultural Cultural sensitivity means that you are aware of Suppose you wanted to know the favourite
Sensitivity other cultures. You must avoid being offensive method of cooking ham, and you asked:
and asking questions that do not apply to that Please circle your favourite method: BBQ
culture. Bake Fry This question does not apply to
everyone because many people do not eat
ham. A better question would be: If you eat
ham, name your favourite method of cooking
it.
Ethics Ethics dictate that collected data must not be Suppose you tell your classmates that you
used for purposes other than those told to the want to know their favourite snacks to help
participants. Otherwise, your actions are you plan your birthday party. If you then use
considered unethical. the information to try to sell your classmates
their favourite snacks between classes, your
actions would be unethical.
Cost The cost of collecting data must be taken into f you need to pay for printing the
account. questionnaires, or to pay people to collect
the data, the cost may be more than you can
afford.
Time The time needed for collecting the data must be A survey that takes an hour to complete may
considered. be too long for most people. This would limit
the number of people willing to participate.

4. What are the different types of questionnaires?

Questionnaires are commonly used to gather first-hand information from a large audience, in the form of
a survey. There are different types of questionnaires in practice and the type of questionnaire to be used
usually depends on the purpose of the survey and the type of data that has to be collected.
Questionnaires are highly practical and can be carried out by any number of people, and the results can
be quickly quantified as well. Over the years, this form of conducting research has also been proven to
be more scientifically accurate, as compared to other quantitative research tools.
Depending upon the nature of the questions in a questionnaire, there can be different types of questions
in questionnaire -
► Questions in Open Ended Format
Questions that allow the target audience to voice their feelings and notions freely are called open-format
questions or open-ended questions. These questions are not based on pre-determined responses, giving
respondents an opportunity to express what they feel is right, and often provide real, perceptional, and
at times, startling proposals. Open-ended questions placed at the end of a questionnaire tend to draw
accurate feedback and suggestions from respondents as well.
Example – What are you planning to buy from supermarket?
 ► Questions in Closed Ended Format
Questions which have multiple options as answers and allow respondents to select a single option from
amongst them are called closed-format or closed-ended questions. This type of questionnaire is
especially useful when conducting preliminary analysis. As a fixed answer set is provided, these are ideal
for calculation of statistical information and percentages of various types. Closed-ended questions help
to arrive at opinions about a product or service, and sometimes, about a company, in a more efficient
manner.
A. Dichotomous Questions - Questions that make respondents answer with a simple "yes" or "no"
are called dichotomous questions. These questions carry one disadvantage-there is no other way
of analyzing the answer between a "yes" and "no". A middle perspective is not possible.
Example – Do you like playing Football? Yes/No
B. Bipolar Questions - Questions that have two answers with different levels of extremities, written
at opposite ends of a scale, are called bipolar questions. Respondents have to mark their
response anywhere between these two extremities, showing their opinion.
Example – What is your preference?
Watching T.V. [] [] [] [] [] Going for walk
C. Bipolar Questions - Questions that have two answers with different levels of extremities, written
at opposite ends of a scale, are called bipolar questions. Respondents have to mark their
response anywhere between these two extremities, showing their opinion.
Example – Food Quality in Hotel
1 Good 2 Fair 3 Poor 4 Very Poor
D. Likert Questions - The degree to which respondents agree to a specific statement can be
ascertained using Likert questions. Customers' feelings about a topic, product or service can be
easily gauged by asking them these questions.
Example – How often you visit the supermarket?
1 Never 2 Rarely3 Sometimes 4 Often 5 Always
E. Buying Propensity Questions - These are aimed at assessing customers' future intentions,
determining their propensity toward buying a specific product or service. Buying propensity
questions help marketers to understand the needs of customers and the probability of their
buying a certain product or a service.
Example - If our devices support wireless charging, would you like to buy it?
1 Definitely 2 Probably 3 Probably Not 4 Not Sure 5 Definitely Not

Other Types of Questionnaires

Apart from the above-mentioned two broad classifications there are two more types which are rarely
used in practice, namely; Mixed Questionnaire and Pictorial Questionnaire.
a. Mixed questionnaires consist of closed as well as open-ended questions. These are normally
used in the field of social research.
b. Pictorial questionnaire on the other hand is used in promotion of interest to answer questions.
These are mostly used as study material for children.

PRACTICAL PART
1. Sums on Measures of Central tendency – Mean, Median and Mode. (Individual series, Discrete series
and Continuous series)

2. Sums on Partition Values – Quartile, Decile and Percentile. (Individual series, Discrete series and
Continuous series)

3. Sums on Measures of Dispersion Range and Quartile Deviation.

(REFER NB FOR THE SUMS)