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Cluster Sampling

The entire population of the study is divided into externally homogeneous but internally heterogeneous groups called clusters

What is Cluster Sampling?

In statistics, cluster sampling is a sampling method in which the entire population of the study is divided into externally homogeneous but internally heterogeneous groups called clusters. Essentially, each cluster is a mini-representation of the entire population.

 

Cluster Sampling
Source: Wikicommons

 

After identifying the clusters, certain clusters are chosen using simple random sampling while the others remain unrepresented in a study. After the selection of the clusters, a researcher must choose the appropriate method to sample the elements from each selected group.

 

Primary Sampling Methods in Cluster Sampling

There are primarily two methods of sampling the elements in the cluster sampling method: one-stage and two-stage.

In one-stage (cluster) sampling, all elements in each selected cluster are sampled. On the contrary, in two-stage (cluster) sampling, simple random sampling is applied within each cluster to select a subsample of elements in each cluster.

The cluster sampling method must not be confused with stratified sampling. In stratified sampling, the population is divided into the mutually exclusive groups that are externally heterogeneous but internally homogeneous. For example, in stratified sampling, a researcher may divide the population into two groups: males vs. females. Conversely, in cluster sampling, the clusters are similar to each other but with different internal composition.

 

Advantages of Cluster Sampling

The cluster (sampling) method comes with a number of advantages over simple random sampling and stratified sampling. The advantages include:

 

1. Requires fewer resources

Since cluster sampling selects only certain groups from the entire population, the method requires fewer resources for the sampling process. Therefore, it is generally cheaper relative to the simple random or stratified sampling as it requires fewer administrative and travel expenses.

 

2. More feasible

The division of the entire population into homogenous groups increases the feasibility of the sampling. Additionally, since each cluster represents the entire population, more subjects can be included in the study.

 

Disadvantages of Cluster Sampling

Despite its benefits, the cluster (sampling) method still comes with a few drawbacks, including:

 

1. Biased samples

Cluster sampling is prone to biases. If the clusters that represent the entire population were formed under a biased opinion, the inferences about the entire population would be biased as well.

 

2. High sampling error

Generally, the samples drawn using the cluster sampling method are prone to higher sampling error than the samples formed using other sampling methods.

 

Related Readings

CFI is the official provider of the global Financial Modeling & Valuation Analyst (FMVA)™ certification program, designed to help anyone become a world-class financial analyst. To keep advancing your career, the additional resources below will be useful:

  • Basic Statistics Concepts in Finance
  • Hypothesis Testing
  • Sample Selection Bias
  • Type II Error

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