Question

Will sample statistics accurately estimate the purchasing habits of all of our customers? Why or why not?

Answer 1

• Usually trade-off is there between accuracy of sample in representing population values and costs associated with sample size. The larger the size of the sample, the more confidently we can say that this sample accurately reflects the population, but large samples are extremely expensive and time consuming process.
• There are chances of variation in results in sample from that of population but unbiasedness, large sample size, consistency, transparency and diversification matters a lot and has the ability to accurately estimate the purchasing habits of all customers.

So,

• Try to reduce the bias of estimates to claim that sample is representative of the population.
• Sample is considered more practical.
• Include reasonable sample size that included a range of different types of customers so that you can get a good level of representation.