Hrishi Raj

EMBA Semester- 01
MB 506 Assignment- 02
Roll Number-2401res213
Assignment 2

Scenario: You are the Marketing Manager for a new brand of sustainable athletic
wear. You are interested in understanding the preferences of potential customers in
your target market (active individuals aged 25-45 who prioritize sustainability)
before launching a marketing campaign.

Question 1: Describe TWO different probability sampling methods you could use
to select a sample from your target market. Explain the advantages and
disadvantages of each method in the context of this scenario. (4 Marks)

Answer:-

One probability sampling method for selecting a sample from the target market
could be simple random sampling, where every individual in the target
demographic has an equal chance of being selected. This method ensures each
potential customer has an equal opportunity to participate, reducing bias. However,
it may be challenging to reach a representative sample due to the diversity within
the demographic.
Another method could be stratified random sampling, where the target market is
divided into subgroups based on relevant characteristics like age or location, and
then random samples are taken from each subgroup. This ensures representation
from various segments of the target market, enhancing the validity of insights
gathered. However, it may require more resources and time to implement
compared to simple random sampling
Question 2: Let's say you decide to use a Simple Random Sample. You estimate
the size of your target market to be around 100,000 people. Calculate the
minimum sample size you would need to achieve a 95% confidence level with a
margin of error of +/- 5%. (Show your calculations for 2 marks)
Answer:-
Here we have to , calculate the minimum sample size needed for a Simple Random
Sample with a 95% confidence level and a margin of error of +/- 5%.
so using the Cochran formula:

here

n0 is the sample size

Z is the Z-score from table (for a 95% confidence level,
=1.96Z=1.96)
p is the estimated proportion of the population that possesses the characteristic of
interest (since no prior information is provided, we usually use 0.5 for maximum
variability)
e is the desired margin of error or precision (in decimal form)
Given:
=1.96Z=1.96
=0.5p=0.5 (maximum variability)
=0.05E=0.05 (5% margin of error)
Substituting these values into the formula:
=1.962×0.5×(1−0.5)0.052n=0.0521.962×0.5×(1−0.5)
=3.8416×0.250.0025n=0.00253.8416×0.25
=0.96040.0025n=0.00250.9604
≈384.16n≈384.16
Rounding up to the nearest whole number, the minimum sample size needed is
385.
So, the minimum sample size required to achieve a 95% confidence level with a
margin of error of +/- 5% in a population estimated to be around 100,000 people is
385

Question 3: Discuss TWO factors that you would consider when deciding on the
final sample size for your survey. Explain how these factors might influence your
decision. (4 Marks)
Answer:-
When deciding on the final sample size for a survey, two crucial factors to consider
are variability within the population and the desired level of confidence. High
variability demands a larger sample to accurately represent diverse characteristics.
Additionally, a higher confidence level necessitates a larger sample to minimize
the margin of error.
These factors influence decision-making by balancing the trade-off between
precision and practicality. A larger sample provides greater precision but may be
resource-intensive, whereas a smaller sample might suffice but could compromise
reliability. Therefore, understanding population variability and setting an
appropriate confidence level are pivotal in determining the optimal sample size for
a survey.