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Project Examples for Sampling and the Law of Large Numbers

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SAMPLING AND THE LAW OF LARGE NUMBERS
The Law of Large Numbers, LLN, tells us it‟s possible to estimate certain information about a population from just the data measured, calculated, or observed from a sample of the population. Sampling saves the project manager time and money, but introduces risk. How much risk for how much savings? The answer to these questions is the subject of this paper.

Examples for the Project Manager

A whitepaper by John C. Goodpasture, PMP Managing Principal Square Peg Consulting, LLC

Sampling and the Law of Large Numbers Examples for the Project Manager
The Law of Large Numbers, LLN, tells us it‟s possible to estimate certain information about a population from just the data measured, calculated, or observed from a sample of the population. A population is any frame of like entities. For statistical purposes, entities should be individually independent and subject to identical distributions of values of interest. Sampling saves project managers a lot of time and money:      Obtains practical and useful results even when it is not economical to obtain and evaluate every data point in a population Extends the project access even though it may not be practical to reach every member of the population. Provides actionable information even when it is not possible to know every member of the population. Avoids spending too much time to observe, measure, or interview every member of the population Avoids collecting too much data to handle even if every member of the population were readily available—to include expense of data handling and timeliness of data handling

Analysis by sampling is called ‘drawing an inference’, and the branch of statistics from which it comes is called ‘inferential statistics’. Drawing an inference is similar to ‘inductive reasoning’. In both cases, inference and induction, one works from a set of

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