Cluster and Stratified Sampling

Sample Solution

Cluster and Stratified Sampling Sampling is a process used in statistical analysis in which a predetermined number of observations are taken from a larger population. Cluster sampling is a sampling plan used when mutually homogeneous yet internally heterogeneous groupings are evident in a statistical population. Stratified sampling is a method of sampling from a population which can be partitioned into sub-populations. The main differences between cluster sampling and stratified sampling is that in cluster sampling the cluster is treated as the sampling unit so sampling is done on a population of clusters (at least in the final stage). In stratified sampling, the sampling is done on elements within each stratum. In stratified sampling, a random sample is drawn from each of the strata, whereas in cluster sampling only selected clusters are sampled. A common motivation of cluster sampling is to reduce costs by increasing sampling efficiency. This contrasts with stratified sampling where the motivation is to increase precision.

stores. However this goes against every value that makes John Lewis what it is today and as such consumers may not be so fond of the move however the basic range brought out in Waitrose called their “essential range” have sold over £100 million of products since there release indicating a changing market for John Lewis showing a very lucrative opportunity for John Lewis. John Lewis online could also be a potential move, as mentioned having an online store would cost considerably less while at the same time giving the consumer the chance to shop from anywhere at anytime they wish. Furthermore discounts could be offered as there are many less overheads involved in the running of the store.

3.4 Threats.

The biggest threat to John Lewis comes from within the business itself, its own structure. That being a partnership structure, hence everybody is a share holder. Therefore in theory if enough shareholders got together to oppose the managing body of the company and the business is left without any clear leader. It also leaves the company open to possible a takeover bid as if enough of the shareholders agree to sell their shares, then the company’s current controlling shareholder will lose their power and become minority shareholders. Numerous competitors also play a key threat in the running of John Lewis, as many offer exactly the same products and services. Therefore the only value added John Lewis can add is their customer service, however this is something that can easily be replicated and as such many competitors may start offering a John Lewis service but at a more competitive price.