Samples, data and how far to trust them Cambridge IGCSE Business Studies (9–1) revision

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In plain words

A business cannot ask every possible customer, so it asks some of them: a sample. Whether the answers can be trusted depends on who was asked, how many, and how the questions were put.

The answers come in two kinds: numbers, and opinions.

6 things to know

  1. A sample is a group chosen to represent the whole market. In a random sample everyone has an equal chance of being picked. In a quota sample people are chosen to match set characteristics, such as age groups.
  2. Quantitative data is numerical: how many, how often, how much. It comes from closed questions and can be put into charts.
  3. Qualitative data is about opinions and reasons: why people like or dislike something. It comes from open questions and focus groups.
  4. Accuracy depends on the size of the sample, how it was chosen, how the questions were worded, whether people answered honestly, and how old the data is.
  5. Results are presented in tables, bar charts, pie charts and line graphs, to make patterns easy to see.
  6. Social media gives quick, cheap reactions, but the people who reply may not be typical of all customers.

Tips and tricks

  • A bigger sample is more reliable but costs more. That trade-off is the usual evaluation point.
  • A leading question pushes people towards an answer: "Don't you agree our new drink is delicious?" The results will be biased.
5 questions, about 2 minutes.

It lands in your notebook with its questions as flashcards.

Samples, data and how far to trust them: 5 questions and answers

These are the quiz’s questions. Do the quiz first, then come back here for the ones that got you.

  1. Which is quantitative data?
    • customers' opinions of a new design
    • the number of people who bought the product last month (the answer)
    • reasons people gave for preferring a rival
    • comments made in a focus group

    It is a number that can be counted.

  2. Why do businesses use a sample in market research?
    • to get less accurate results
    • because asking every consumer would be too expensive and slow (the answer)
    • because customers refuse to answer
    • to avoid collecting data

    A well-chosen part can stand in for the whole.

  3. Which would make survey results less reliable?
    • a large sample
    • clear questions
    • leading questions (the answer)
    • a random sample

    They push people towards a particular answer.

  4. Which method is most likely to produce qualitative data?
    • counting customers entering a shop
    • checking sales records
    • a focus group (the answer)
    • a tick-box questionnaire

    People discuss their opinions and reasons.

  5. A pie chart is most useful for showing
    • changes over ten years
    • how a total is divided into shares (the answer)
    • the wording of a question
    • one customer's opinion

    Each slice is a share of the whole, such as market shares.

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