Presentation on

Sampling:
Final and Initial Sample
Size Determination
Presented by:-
Yumkham Babul
Remo Yendrembam
Sagolsem Kuptreng
 12-2

Chapter Outline
1) Introduction
2) Definitions and Symbols
3) The Sampling Distribution
4) Statistical Approaches to Determining SampleSize
5) Confidence Intervals
i. Sample Size Determination: Means
ii. Sample Size Determination: Proportions
6) Multiple Characteristics and Parameters
7) Other Probability Sampling Techniques
 12-3

Chapter Outline
8) Adjusting the Statistically Determined SampleSize
9) Non-response Issues in Sampling
i. Improving the ResponseRates
ii. Adjusting for Non-response
10) International MarketingResearch
11) Internet and ComputerApplications
12) summary
Introduction
Sampling size determination is the act of choosing the
number of observations or replicates to include in a
statistical sample. The sample size is an important
feature of any empirical study in which the goal is to
make inferences about a population from a sample.

In practice, the sample size used in a study is usually

determined based on the cost, time, or convenience of
collecting the data, and the need for it to offer sufficient
statistical power
 12-4

Definitions and Symbols

 Parameter : A parameter is a summary description
of a fixed characteristicor measure of the target
population.
 Statistic : A statistic is a summary description of
a characteristic or measure of the sample.
The sample
statistic is used as an estimate of the population
parameter.
 Finite population correction

 Confidence interval


 Confidence level
 Symbols for Population and Sample Variables
Table 12.1

Var iable Populat ion Sample

Mean µ X

Pr o p o r t ion  p

Variance 2 s2

St a n d a r d d e v i a t i o n  s

Size N n
_
St a n d a r d e r r o r o f t h e m e a n x _ Sx

p
St a n d a r d e r r o r o f t h e p r o p o r t i o n
_S p

St a n d a r d i z e d v a r i a t e ( z ) (X-µ) /  ( X- X) / S
_
C o e f f icient of va r i a t ion ( CV) / µ S/ X
 12-6

The sampling distribution

The sampling distribution is 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. Suppose that a simple random sample of five
hospitals is to be drawn from a population of 20 hospitals.

There are (20 × 19 × 18 × 17 × 16)/ (1 × 2 × 3 × 4 × 5 ), or

_
15,504 different samples of size 5 that can be drawn. The
relative frequency distribution of the values of the mean of
these 15,504 different samples would specify the sampling
distribution of the mean.
 12-7

The statistical approach to

determining sample size
The statistical approach to determining sample size that
we consider is based on traditional statistical inference.2
In this approach the precision level is specified in advance.
The confidence interval approach to sample size
determination is based on the construction of confidence
intervals around the sample means or proportions using
the standard error formula.

Sample size determination: means

The approach used here to construct a confidence interval can
be adapted to determine the sample size that will result in a
desired confidence interval.
Sample size determination: proportions
If the statistic of interest is a proportion rather than a mean, the
approach to sample size determination is similar.
 Sample Size Determination for
Means and Proportions
Table 12.2
Steps Means Proportions

1. Specify the level of precision D = $5.00 D = p -  = 0.05

2. Specify the confidence level (CL) CL = 95% CL = 95%

3. Determine the z value associated with CL z value is 1.96 z value is 1.96

4. Determine the standard deviation of the Estimate :  = 55 Estimate :  = 0.64

population

5. Determine the sample size using the n = 2z2/D2 = 465 n = (1-) z2/D2 = 355
formula for the standard error

6. If the sample size represents 10% of the nc = nN/(N+n-1) nc = nN/(N+n-1)

population, apply the finite population
correction
_
= p  zsp
7. If necessary, reestimate the confidence
interval by employing s to estimate 
=   zs-x
8. If precision is specified in relative rather D = Rµ D = R
than absolute terms, determine the sample n = C2z2/R2 n = z2(1-)/(R2)
size by substituting for D.
 12-7

The Confidence Interval Approach

Calculation of the confidence interval involves determining a
distance below (X L)and above (X)Uthe population mean ( X),
which contains a specified area of the normal curve (Figure
12.1).

The z values corresponding to and may be calculatedas

XL - 
zL =
x

XU - 
zU =
x
where z L = -z and z U= +z. Therefore, the lowervalue of Xis
X L =  - zx
and the upper value of X is
X U = + zx
 12-8

The Confidence Interval Approach

Note that is estimatedby X. The confidence interval is given by
X  zx
We can now set a 95% confidence interval around the sample meanof
$182. As a first step, wecompute the standard error of themean:
x = n= 55/ 300 = 3.18
From Table 2 in the Appendix of Statistical Tables, it can be seen that
the central 95% of the normal distribution lies within + 1.96 z values.
The 95% confidence interval is givenby

X + 1.96 x
= 182.00 + 1.96(3.18)
= 182.00 + 6.23

Thus the 95% confidence interval ranges from $175.77 to $188.23. The
probability of finding the true population mean to be within $175.77 and
$188.23 is 95%.
 12-9

95% Confidence Interval

Figure 12.1

0.47 0.47
5 5

_ _ _
XL X XU
 Sample Size for Estimating Multiple Parameters
Table 12.3

Variable
Mean Household Monthly Expense On
Department store shopping Clothes Gifts

Confidence level 95% 95% 95%

z value 1.96 1.96 1.96

Precision level (D) $5 $5 $4

Standard deviation of the $55 $40 $30

population ()

Required sample size (n) 465 246 217

Adjusting the Statistically
Determined Sample Size
Incidence rate refers to the rate of occurrence or the
percentage, of persons eligible to participate in the study.

In general, if there are cqualifying factors withan incidence of

Q1, Q2, Q3, ...QC,each expressed as a proportion,

Incidence rate = Q1xQ2xQ3....xQC

Initial sample size = Final sample size .

Incidence rate xCompletion rate
 Improving Response Rates
Fig. 12.2
Methods of Improving
Response Rates

Reducing Reducing
Refusals Not-at-Homes

Prior Motivating Incentives Questionnaire Follow-Up Other

Notificatio Respondent Design Facilitator
n s and s
Administrati
on

Callbacks
 12-15

Adjusting for Nonresponse



 Subsampling of Non-respondents

 In replacement


 In substitution

 Subjective Estimates

 Trend analysis

 Weighting

 Imputation
 International marketing
research


When conducting marketing research in foreign countries,

statistical estimation of sample size may be difficult
because estimates of the population variance may be
unavailable.
 Hence, the sample size is often determined by
qualitative considerations, as discussed

For example, in measuring consumer preferences, a greater

degree of heterogeneity may be encountered in countries
where consumer preferences are not well developed .
Thus,it may be a mistake to assume that the population
variance is the same or to use the same sample size in
different countries
 Internet and computer
applications


The main use of the Internet in sample size calculations is

to track down potential sampling frames that could be
used to define and classify a population. With different
sampling
 frames collected and ‘cleaned’ in a database
package, the ultimate population size can be determined. If
there is a finite size to a population, the Internet can play a
vital role in tracking down all elements of that population.
 Summary


Thestatisticalapproachestodeterminingsamplesizearebasedon
confidenceintervals.Theseapproachesmayinvolvetheestimationof the
meanorproportion.Whenestimatingthemean,determinationof sample
sizeusing
 theconfidenceintervalapproachrequiresthespecificationof
precisionlevel,confidencelevelandpopulationstandarddeviation.Inthe
caseof proportion,theprecisionlevel,confidencelevelandanestimateof
thepopulationproportionmustbespecified.Thesamplesizedetermined
statisticallyrepresentsthefinalornetsamplesizethatmustbeachieved.To
achievethisfinalsamplesize,amuchgreaternumberof potential
respondentshavetobecontactedtoaccountforreductioninresponsedue
toincidenceratesandcompletionrates.
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