Statistics for Business and Finance: Analyzing Household Data

Statistics For Business and Finance
Analyzing Household Data
Student Name
[Pick the date]

Task 1
A. Simple random sampling method has been used to collect the sample from population. The
derived sample through this sampling method would have same possibility of selection for
each element. However, sample from this sampling method would under/over represent the
population and thus may not be termed as true representation of population. Instead, stratified
simple random sampling provides the sample which is true representative of the population.
This is because in stratified sampling the population can be divided according to the key
attributes post which selection can be done randomly so that the attributes in the sample
match that of population (Eriksson & Kovalainen, 2015). Hence, it would be recommended
that stratified simple random sampling should be used for deriving the sample of 250
household from the population.
B. Descriptive statistics
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