Sequential Sampling

In sequential sampling, a number of samples n1, n2, n3…nx are randomly drawn from the population It is not at all necessary that each sample should be of the same size Generally, the first sample is the largest, the second is smaller than the first, the third is smaller than the second, and so on

A sequential sampling is resorted mainly to bring down the cost and hence the smallest possible sample is used The desired statistics from first sample, ni, are computed and evaluated If these statistics do not satisfy the criteria laid down, a second sample is drawn The results of the first and second samples are added and the statistics are recomputed This process is continued until the specified criteria are satisfied The criteria are usually a minimum significance level, a minimum cluster size, or a minimum confidence interval

The main advantage of sequential sampling is that it obviates the need for determining a fixed sample size before the commencement of the survey

Suppose a firm is to decide whether a new product is to be introduced in the market or not It feels that if it is able to acquire 15 per cent market share in a country within a year, it should introduce the new product Further, it feels that if a market share of 10 per cent in a few test markets is achieved, it would be possible to acquire a 15 per cent market share in the country, say, within a period of six months Now, when the firm has undertaken test marketing, it actually achieved far more than 10 per cent, say, 20 per cent, of the market share and that too within three months of test marketing The firm may be sure to achieve the 15 per cent national market share within one year even though it may not be possible for it to accurately forecast the test market share at the end of four months

The following two tabs change content below.

#### BMS Team

We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected]

BMS.co.in is aimed at revolutionising Bachelors in Management Studies education, also known as BMS for students appearing for BMS exams across all states of India. We provide free study material, 100s of tutorials with worked examples, past papers, tips, tricks for BMS exams, we are creating a digital learning library.

Disclaimer: We are not affiliated with any university or government body in anyway.

©2020 BMS - Bachelor of Management Studies Community