YASH RAMDEO (DM20C59)

SRISTI SARAF (DM20C60)

RESEARCH SUMMARY SHWETA PRAKASH (DM20C61)

Group 7 (PGDM-3) AAYUSHI MISHRA (DM20C62)

CHAPTER- 12 & 14 PARTH PANCHAL (DM20C63)

SHANTNU KAUSHIK (DM20C64)

CHAPTER- 12- Sampling: Final and Initial Sample Size Determination

The size of the sample is determined not only by statistical calculations, but also managerial
considerations including time and cost.

Concepts that play a central role in sample size determination are:-

1. Parameter- A parameter is a summary description of a fixed characteristic or measure

of the target population. A parameter denotes the true value that would be obtained if
a census rather than a sample were undertaken.
2. Statistic: A statistic is a summary description of a characteristic or measure of the
sample.
3. Finite population correction: It is a correction for overestimation of the variance of a
population parameter.
4. Precision level: This is the maximum permissible difference between the sample
statistic and the population parameter.
5. Confidence interval: The confidence interval is the range into which the true
population parameter will fall, assuming a given level of confidence.
6. Confidence level: The confidence level is the probability that a confidence interval
will include the population parameter.

THE SAMPLING DISTRIBUTION- The distribution of the values of a sample statistic

computed for each possible sample that could be drawn from the target population under a
specified sampling plan.

STATISTICAL INFERENCE -The process of generalizing the sample results to the

population results. In practice, a single sample of predetermined size is selected and the
sample statistics are computed.
The important properties of the sampling distribution of the mean, and the corresponding
properties for the proportion, for large samples (30 or more) are as follows:-
1. The sampling distribution of the mean is a normal distribution.
2. The mean of the sampling distribution of the mean or the proportion equals the
corresponding population parameter value, µ or π, respectively.
3. Standard Error The standard deviation of the sampling distribution of the mean or
proportion.
4. Z Values- The number of standard errors a point is away from the mean.
5. When the sample size is 10 percent or more of the population size, the standard error
formulas will overestimate the standard deviation of the population mean or
proportion.

STATISTICAL APPROACH TO DETERMINING SAMPLE SIZE - The statistically

determined sample size is the net or final sample size—the sample remaining after
eliminating potential respondents who do not qualify or who do not complete the interview.
Several qualitative factors should also be taken into consideration when determining the
sample size: (A) Importance of the decision, (B) The nature of the research, (C) The number
of variables, (D) The nature of the analysis, (E) Sample sizes used in similar studies,
(F) Incidence rates, (G) Completion rates, and (H) Resource constraints.

THE CONFIDENCE INTERVAL APPROACH- The confidence interval approach to

sample size determination is based on the construction of confidence intervals around the
sample mean or proportion using the standard error formula. It finds an interval within
which a fixed proportion of the sample means will fall.

SAMPLE SIZE DETERMINATION: MEANS & PROPORTIONS:-

1. Specify the level of precision.

2. Specify the level of confidence

3. Determine the z value associated with the confidence level

4. Determine the standard deviation of the population.

5. Determine the sample size using the formula for the standard error of the mean.
 6. If the sample size represents 7 = 10% of the population, apply the finite
population correction (fpc).

(FORMULAES DIFFER FOR MEAN AND PROPORTION ARE DIFFERENT)

OTHER PROBABILITY SAMPLING TECHNIQUES- The determination of sample size

for other probability sampling techniques is based on the same underlying principles like
specifying the level of precision and the degree of confidence and estimate the sampling
distribution of the test statistic.

 Simple random sampling- cost does not enter directly into the calculation of
sample size.
 Stratified or cluster sampling - cost has an important influence.
INCIDENCE RATE-The rate of occurrence of persons eligible to participate in the study
expressed as a percentage.
COMPLETION RATE -The percentage of qualified respondents who complete the
interview.
Response Rate = Number of Completed Interviews
Number of Eligible Units in Sample
NONRESPONSE ISSUES IN SAMPLING -The two major nonresponse issues in
sampling are (a) improving response rates and (b) adjusting for nonresponse.
It arises when some of the potential respondents included in the sample do not respond.
THE PRIMARY CAUSES OF LOW RESPONSE RATES ARE:-
(A) REFUSALS – It results from the unwillingness or inability of people included in the
sample to participate, result in lower response rates and increased potential for
nonresponse bias.
(B) NOT-AT-HOMES-In telephone and in-home personal interviews, low response rates
can result if the potential respondents are not at home when contact is attempted.
SUBSAMPLING OF NONRESPONDENTS -In this technique, the researcher contacts a
subsample of the nonrespondents, usually by means of telephone or personal interviews.
REPLACEMENT- In replacements, the nonrespondents in the current survey are replaced
with nonrespondents from an earlier, similar survey.
SUBSTITUTION-A procedure that substitutes for nonrespondents other elements from
the sampling frame that are expected to respond.
TREND ANALYSIS – It is an attempt to discern a trend between early and late
respondents. This trend is projected to nonrespondents to estimate where their
characteristic of interest.