OFFICIAL STATISTICS SPECIALLY DESIGNED FOR INDIAN STATISTICAL SERVICE (ISS) AND OTHER GOVERNMENT & PRIVATE SECTOR STATISTICAL EXAMINATIONS
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Every figure from the National Sample Survey, whether it is unemployment, consumption or literacy, comes from a small sample of households that is scaled up to represent the whole country. The tool that does the scaling is the multiplier, and the plan that decides who gets surveyed is the sampling design. This is core material for the Indian Statistical Service (ISS) papers, and it also appears in RBI, NABARD, SSC and university statistics exams. This guide gives you the design, the estimation logic and three exam-style questions.
1. What is the National Sample Survey?
The National Sample Survey (NSS) is India's large-scale sample survey programme. It was started in 1950 under the guidance of P. C. Mahalanobis and is run in rounds, each covering a subject such as consumption, employment, health or land and livestock holdings. Because a census of every household is too costly, the NSS uses a carefully designed sample.
Why examiners love this topic
NSS design brings together stratification, multi-stage sampling, unequal probability selection and estimation with weights. A question can ask for a definition, a comparison of sampling schemes or a numerical estimate.
2. Who conducts the NSS and how?
The National Statistics Office (NSO) under MoSPI conducts the NSS. The NSO was formed in 2019 by merging the Central Statistics Office (CSO) and the National Sample Survey Office (NSSO). The usual design is stratified multi-stage sampling. Always check the design report of the specific round, because details change from one round to another.
Stratification
The population is divided into strata, usually by district or groups of districts, separately for rural and urban areas.
Stages
First stage units (FSUs) are census villages in rural areas and urban frame survey (UFS) blocks in urban areas. Second stage units (SSUs) are households.
Sub-samples
Traditionally the sample is drawn as two or more interpenetrating sub-samples, which help in estimating errors.
Exam tip
Households in a selected FSU are often grouped into second stage strata, based on affluence or the item of interest, and are then drawn by circular systematic sampling. If an FSU is very large, it is first divided into hamlet-groups or sub-blocks, and a few of them are chosen.
3. The estimator and the multiplier
Each sampled household stands for many households in the population. The number it stands for is the multiplier, which is the inverse of its overall probability of selection.
Here N is the number of FSUs in the stratum and n the number selected (SRSWOR), Di is the number of households listed in the i-th selected FSU, di is the number surveyed there and yij is the value for the j-th sampled household.
- Strength: stratification improves precision, and multi-stage sampling cuts cost, since only selected villages and blocks need to be visited.
- Weakness: clustering raises the sampling variance, and estimates for small areas can be unreliable.
- Property to remember: the multiplier is the reciprocal of the selection probability, so an unweighted sample total is not an estimate of the population total.
4. A worked example at a glance (Illustrative)
Take a stratum of N = 100 villages, from which n = 4 are chosen by SRSWOR. Each bar shows the weighted contribution of a sampled village to the estimated number of households with internet access. The numbers are hypothetical and are worked out in Question 2.
Hypothetical data for practice only. D = listed households, y = sampled households with internet access (10 households surveyed per village). Contribution = (N/n) × (D/d) × y.
5. SRSWOR vs PPSWR: the comparison that keeps coming up
| Basis | SRSWOR | PPSWR |
|---|---|---|
| Full name | Simple random sampling without replacement | Probability proportional to size, with replacement |
| Selection chance | Equal for every unit | Proportional to a size measure such as population |
| Repeat selection | A unit cannot be picked twice | A unit can be picked more than once |
| Estimator of a total | N × sample mean | Hansen-Hurwitz: (1/n) Σ yi / pi |
| Best when | Units are similar in size | Units differ a lot in size, and the size is known |
6. Common mistakes students make
- Mixing up the FSU (village or UFS block) with the SSU (household).
- Using the unweighted sample total as the population estimate. It must be scaled by the multiplier.
- Writing that the NSSO is still a separate office. The NSSO and the CSO were merged into the NSO in 2019.
- Thinking that a large sample removes all errors. It reduces sampling error, but not non-sampling error.
- Saying stratification and clustering do the same job. Stratification improves precision, while clustering saves cost.
7. Three important questions on NSS sampling
Try each one on your own first, then tap the answer.
Define first stage unit, second stage unit and multiplier in the context of the NSS.
Show answer
The first stage unit (FSU) is the unit selected first: a census village in rural areas or an urban frame survey block in urban areas. The second stage unit (SSU) is the unit selected within an FSU, usually a household. The multiplier is the inverse of the overall probability of selection of a sampled unit. It tells us how many units in the population that sampled unit represents.
A stratum has N = 100 villages, and n = 4 are selected by SRSWOR. In each selected village 10 households are surveyed. The numbers of listed households are 100, 120, 80 and 100. The numbers of sampled households with internet access are 4, 6, 3 and 5. Estimate the total number of households in the stratum, the number with internet access, and the proportion with access.
Show answer
N/n = 100 / 4 = 25
Estimated households = 25 × (100 + 120 + 80 + 100) = 25 × 400 = 10,000
Estimated with access = 25 × [ (100/10)×4 + (120/10)×6 + (80/10)×3 + (100/10)×5 ]
= 25 × (40 + 72 + 24 + 50) = 25 × 186 = 4,650
Proportion = 4,650 / 10,000 = 0.465 (46.5%)
Describe the stratified multi-stage sampling design used in NSS surveys. Why is such a design preferred to simple random sampling of households?
Show answer
Write your answer in four parts. (a) Stratification: the population is divided into strata, usually by district or groups of districts, separately for rural and urban sectors, so that every region is represented. (b) Stages: FSUs (villages, UFS blocks) are selected first; then households (SSUs) are listed and drawn, often after second stage stratification and by circular systematic sampling. (c) Estimation: each household gets a multiplier equal to the inverse of its selection probability, and the multipliers are used to scale up sample values to population estimates. (d) Why preferred: a frame of all households does not exist, and households spread over the country would be very costly to visit. Clustering within selected villages and blocks cuts travel and listing cost, and stratification improves precision. Conclude that the price of this design is a higher sampling variance than for SRS of the same size, which is why estimates for small domains need care.
Key takeaways
- The NSS is conducted by the NSO, MoSPI, and uses stratified multi-stage sampling with villages or UFS blocks as FSUs and households as SSUs.
- The multiplier is the inverse of the overall selection probability, and estimates are obtained by weighting each sampled unit.
- SRSWOR gives equal chances to every unit, while PPSWR gives chances proportional to size.
- Know the FSU, SSU and multiplier definitions cold. They are a likely exam question this year.
Everything on Official Statistics, in one book
This topic is just one chapter of the syllabus. If you want the complete picture, this book is built for you.
- Indian official statistical system: MoSPI, NSO, NSC and the data they produce
- National accounts, GDP, IIP, price indices and labour statistics
- NSS surveys, sampling designs and data quality concepts
- Written specially for the ISS exam, and useful for other government and private sector statistical exams
- Concept-focused notes to revise quickly before the exam
Official Statistics for ISS and other Government & Private Sector Statistical Examinations