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Mb0050 SLM Unit07
Mb0050 SLM Unit07
Mb0050 SLM Unit07
Where
X
= e = Margin of error
n = Sample size
= Population standard deviation
Z = the value of standard normal ordinate
It may be noted from above that the size of the sample is directly
proportional to the variability in the population and the value of Z for a confidence
interval. It varies inversely with the size of the error. It may also be noted that
the size of a sample does not depend upon the size of population.
Below is given a worked out example for the determination of a sample
size.
Example 7.1: An economist is interested in estimating the average monthly
household expenditure on food items by the households of a town. Based on
past data, it is estimated that the standard deviation of the population on the
monthly expenditure on food item is `30. With allowable error set at `7, estimate
the sample size required at a 90 per cent confidence.
Solution:
90 per cent confidence Z = 1.645
e = `7
= `30
n =
2 2
2
Z
e