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Which of the following errors is more serious and why? - Economics

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Question

Which of the following errors is more serious and why?

Options

  • Sampling error

  • Non-Sampling error

MCQ
Answer in Brief
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Solution

Non-sampling errors are more serious than the Sampling Errors because the latter can be minimized by taking a larger sample. Non-sampling Errors emerge due to the use of faulty means of a collection of data, whereas, the Sampling Errors emerge due to the divergence between the estimated and the actual value of a parameter of a small-sized sample population. For example, errors due to personal biasness, misinterpretation of results, miscalculations, etc.

The Sampling Errors can be minimised by increasing the size of a small sample so that the difference between the actual and the estimated value is reduced. But the Non-sampling Errors are difficult to rectify as it would require the selection of a new sample and conducting a fresh survey. Thus, Non-sampling Errors are more serious than Sampling Errors.

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Concepts of Sampling
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