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Question 12 4 Marks) Multi-stage sampling Multi-stage sampling (also known as multi-stage cluster sampling) is a more complex form of cluster sampling which contains two or more stages in sample selection. In simple terms, in multi-stage sampling large clusters of population are divided into smaller clusters in several stages in order to make primary data collection more manageable. It has to be acknowledged that multi-stage sampling is not as effective as true random sampling; however, it addresses certain disadvantages associated with true random sampling such as being overly expensive and time-consuming. Contrary to its name, multi-stage sampling can be easy to apply in business studies. Application of this sampling method can be divided into four stages: Choosing sampling frame, numbering each group with a unique number and selecting a small sample of relevant discrete groups. Choosing a sampling frame of relevant discrete sub-groups. This should be done from relevant discrete groups selected in the previous stage. Repeat the second stage above, if necessary. Choosing the members of the sample group from the sub-groups using some variation of probability sampling. The question is a company is selling a certain product. The demand function for the product is linear. The company can sell 2000 units when the price is 8 per unit and it can sell 3000 units when the price is 4 per unit. Determine :) the demand function (ii) the total revenue function. Let's illustrate the application of the stages above using a specific example. Your research objective is to evaluate online spending patterns of households in the US through online questionnaires. You can form your sample group comprising 120 households in the following manner: 10. Choose 5 households from each district using simple random or systematic sampling methods. This will result in 120 households to be included in your sample group. States Districts | Villages - Thouseholds A 5 Effective in primary data collection from geographically dispersed. population when face-to-face contact in required (e.g. semi-structured in-depth interviews)