QFINANCE Topics
• Balance Sheets and Cash Flow
• Financial Markets
• Financial Regulation and Compliance
• Funding and Investment
• Governance and Ethics
• Mergers and Acquisitions
• Operations and Performance
QFINANCE Reference
• Research Data
• Financial Reference

Home > QFINANCE Dictionary > Definition of probability sampling

Definition of

# probability sampling

Statistics

creating statistical sample that could include any individual in a statistical study, a way of sampling in which every individual in a finite population has a known, but not necessarily equal, chance of being included in the sample

probability sampling - Related Articles
• ### Binomial Distribution

Calculations

This is considered to be the most accurate calculation of binomial probabilities, since it involves precise calculation. However, it is best used where n is less than 1,000, or where you are using a computer program to perform more complex calculations on larger sample sizes.

• ### Analysis Using Monte Carlo Simulation

Checklists

Monte Carlo simulation randomly samples inputs to produce many thousands of possible outcomes, rather than a few discrete scenarios as produced, for example, by deterministic modeling using single-point estimates. Monte Carlo results also give probabilities for different outcomes. Lay decision

• ### Covariance

Calculations

Covariance measures the relationship between two random variables. For example, we might measure whether a sample population liked drinking wine, and whether they liked eating cheese. Covariance is a form of probability theory that allows us to measure the extent to which those two random variables

• ### Stochastic Modeling

Calculations

Stochastic modeling uses thousands of simulations to produce probability distributions for various outcomes. It is widely used to predict how stock markets, bonds, and gilts will perform in the future.

More

Definitions of ’probability sampling’ and meaning of ’probability sampling’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’probability sampling’ and other financial terms with our online QFINANCE Financial Dictionary.