The Statistics for Business and Finance

Statistics for Business and Finance
[DATE]
[COMPANY NAME]
[Company address]

Task 1
Part A)
In order to select the sample of 250 observations from the population provided, the sampling
method used is SRS (Simple Random Sampling). This is a sampling technique where every
population element has equal chance of selection since no criterion for selection is applied.
As a result, in case of population where there are some key attributes which ought to be
represented, SRS may lead to a biased sample selection. This may be attributed to complete
disregard to different attributes when SRS is implemented. As a result, the resultant sample
would have misrepresentation of the vital attributes and thereby lower the reliability of the
results obtained from this sample (Flick, 2015).
A superior alternative to sample selection in such scenarios is stratified random sampling.
This sampling technique continues to maintain the randomness element while ensuring that
that key attribute representation in sample is quite similar to that in population. This happens
since this sampling technique operates in two steps unlike one in SRS. The first step involves
division of the population based on the pivotal attributes. One this is completed, then using
random selection, suitable sample is withdrawn from each of these attributes so that the
representation of attributes in population and sample tends to be as similar as possible (Hair
et. al., 2015).
Part B)
The variable of interest for descriptive statistics are Alcohol, Meals, Fuel and Phone.
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For the variables Alcohol, Meals, Fuel and Phone, the Box-whisker plot is shown below.
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