Variable Sampling: Mean Per Unit, Ratio & Difference Estimation (Simple Explanation)

Variable Sampling!

Topics:
00:00 Introduction: Uses
1:06 Sample Size
2:42 Mean Per Unit (MPU), Difference Estimation
4:22 Ratio Estimation
4:42 Examples: MPU, Difference Estimation and Ratio Analysis

The process of predicting the value of a specific variable within a population is known as variables sampling. A small sample size, for example, can be used to calculate the average account receivable balance, as well as a statistical derivation of the plus or minus range of the total receivables value under consideration.

Variables sampling treats each record as a separate sampling unit. As a result, unlike MonetaryUnit Sampling (MUS), which favours higher dollar value records, each record has an equal probability of getting selected for the sample.

Three common types of variable sampling are;
(1) mean-per-unit estimation, (2) ratio estimation, and (3) difference estimation.