Question

In Exercises 5–8, identify the type of sample described. A taxicab company wants to know whether its customers are satisfied with the service. Drivers survey every tenth customer during the day.

Short answer

The type of sample described is a Systematic Sampling.

Step-by-step solution

Understanding the Problem

Here, a taxicab company is interested in understanding the satisfaction level of its customers with the service provided. They have a defined system for survey, where every tenth customer during the day is surveyed. This is to find out the customer service satisfaction level.

Identifying the Sampling Method

Given the survey process, we can identify that this is a form of sampling method. According to the information, every tenth customer is surveyed, meaning there is a systematic selection of subjects involved. This suggests that the sampling method used by the taxicab company is systematic sampling. In systematic sampling, every 'nth' member of a population is selected to be included in the study, which in this case is every tenth customer.

Concluding the Problem

So, based on the understanding and the characteristics of the survey process, it can be concluded that the taxicab company has used the systematic sampling method in their customer satisfaction survey. This method is often used when a stream of representative people are available, as in the case of a taxi service where customers come at somewhat regular intervals.

Key concepts

Sampling Methods in Research

Sampling is a fundamental concept in statistics that involves selecting a subset of individuals or observations from a larger population to estimate characteristics of the whole population. Systematic sampling, the method applied by the taxicab company, is a type of probability sampling where every 'nth' item in the target population is selected. The main advantage of this method is its simplicity and ease of implementation. It is particularly effective when there is a steady flow of subjects, as with customers of a service.

However, to ensure the representativeness of the sample, the starting point should be chosen randomly. In some cases, systematic sampling can lead to bias if there is an underlying pattern within the population that corresponds to the selection interval. For instance, if every tenth customer happened to be coming from a specific location or during a particular time, this could skew the results. Effective sampling methods are essential for accurate data collection and for making informed decisions based on statistical analysis.

Conducting a Customer Satisfaction Survey

Customer satisfaction surveys are vital tools used by businesses to assess how their products or services meet or surpass customer expectations. They can reveal insights into what customers like and dislike, helping to drive improvements. When conducting a customer satisfaction survey, as in the case of the taxicab company, it's crucial to consider both the questionnaire’s content and the sampling method.

The survey should include questions that are clear, concise, and targeted to the aspects of service that the business seeks to evaluate. Closed-ended questions typically result in quantitative data that is easy to analyze, while open-ended questions can provide richer qualitative insights. It's also important to ensure the survey is distributed to a sample that accurately represents the customer base, avoiding bias. To get the most out of the results, businesses should plan to address the feedback systematically and strategically.

Statistics in Decision Making

Statistics play a pivotal role in decision making for businesses and organizations. By applying statistical methods, decision makers can analyze data more effectively to understand trends, make predictions, and gauge the effectiveness of strategies and processes. For instance, using the systematic sampling method in a customer satisfaction survey, a taxicab company can statistically derive the satisfaction level across its customer base.

Through statistical analysis, the company can identify areas for improvement, such as wait times, pricing, or driver professionalism. Based on such findings, strategic decisions can be made to enhance service quality and operational efficiency. Clear and accurate statistical data provides a strong foundation for objective decision making, mitigating the risks associated with guesswork and subjective judgment. It is, therefore, essential for companies to adopt robust statistical practices in their research and development processes.