The Application of Sampling Procedures to Business Operations*

Abstract

* Revision of paper presented at a luncheon meeting of the Chicago Chapter, American Statistical Association, October 16, 1952. The purpose of this short article is to give business executives an insight into sampling theory and procedures without confusing them with mathematical symbols or unexplained technical terms. Sampling is defined, and the principal applications in the telephone business are briefly described. The procedures used are grouped into three broad categories—judgment sampling, systematic sampling, and random sampling—the relative advantages of which are pointed out. Various ways of minimizing the cost of random sampling are discussed. A word of caution is added regarding the dangers of improperly selected samples.