Research and Statistical Methods of Business

Running Head: RESEARCH AND STATISTICAL METHOD OF BUSINESS 1
Research and Statistical Methods of Business
Student’s Name
Institution’s Name

RESEARCH AND STATISTICAL METHOD OF BUSINESS 2
Research and Statistical Method of Business
Sample size
Sampling is a statistical analysis procedure where an established number of observations
are chosen from a bigger population. The sample size should be at most 10% of the population.
In this research the sample size is quite large (21%), which is necessary due to the following
reasons:
It provides a more accurate mean value. The bigger the sample size the closer its mean
values will be to the mean values of the actual population. In this research, therefore, such mean
values as of the age of employees and the number of employees having worries about keeping
their jobs closely reflect the true mean values.
Identifying outliers that could skew the data in a smaller sample. Since the mean values
of a larger sample are precise to the actual mean, it is very possible to identify outliers in the
research findings. For example, having an employer aged 18-24 years can be considered an
outlier to the mean grouped-age value.
Confidence level and margin of error. The sample size states the quantity of information
we have thus partially decides our accuracy. The bigger the sample size the more certain we are
and the lower the standard error. This large sample size reduces variation between sample
statistics and therefore decreases the confidence interval, increasing the confidence level.
The margin of error is the level of accuracy required. It is a percentage expression of the range of
the measurement estimated. The bigger the sample size the narrower the margin of error.
Power and effect size. The large sample size increases the likelihood of rejecting the null
hypothesis when it is false. This increases the power of the test and reduces the probability of
making a type II error. Effect size is the presumed difference between groups observed in the

RESEARCH AND STATISTICAL METHOD OF BUSINESS 3
sample. This large sample would mean a small effect size, that is, detecting a difference with a
defined power.
Sampling method
Simple random sampling is the method used in this research. This is because every
employee in the banking sector had an even chance of being chosen in the sample. The selection
depends entirely on probability. This method has its merits and demerits. The following are the
merits:
A random sample represents the population. Every individual has an even likelihood of
being chosen therefore better chances of the sample representing the whole population.
Involves a lesser degree of judgment. It eliminates bias by allowing all individuals an
even likelihood to be chosen.
Simple random sampling is easy to use. It does not involve any complicated and long
procedures. The researcher only needs to make a list from which he or she chooses the sample
randomly.
It results in a sample that is a true representative of the whole population. This is because
everyone in the population is given fair chance to be part of the sample. The final sample,
therefore, represents the population without bias.
When performed correctly it reduces sampling error. There is less bias and sample data is
well balanced relative to the population.
It can be done by non-technical researchers. Since it does not involve any complex
procedure, it can be done by any kind of person.