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Chapter 12 - Sample Size
I. Learning Objectives:
1. To review the statistical principles and procedures for determining sample size to achieve a
desired level of precision and a desired degree of confidence when:
a. estimating a population mean
b. estimating a population proportion
2. To discuss how one can use anticipated cross classifications of the data to determine
sample size.
Time: 2 days
Objectives Addressed: 1 and 2
1. Begin by pointing out that the illustration of sample size determination discussed in the
chapter is for the most basic of cases: simple random sampling to estimate a mean or a
proportion with no regard to cost. Point out that if one is considering other sampling plans
or other statistics, the principles will remain the same although the sampling distribution
with which one works will change.
2. Next emphasize the distinction between precision and confidence. For some reason, this
seems to be a point of confusion among students having only an introductory statistics
course. Once grasped, the students experience much less difficulty in understanding
sample size determination.
3. Turn then to a discussion of estimating a population mean with a desired degree of
absolute precision and a specified degree of confidence. It helps the students if one
begins the discussion with Case I of known population variance. The formula for
determining sample size can then be grasped intuitively by using the following diagram.
z x
x x
The number of standard deviations the sample
mean is removed from the population mean is set
equal to the specified half interval; i.e., H = z x
and the equation is solved for n. One can use an
example to then illustrate the procedure.
It is helpful here to review by example what happens when is estimated to be more or
less variable than the estimate provided by the unbiased sample standard deviation, s .
5. Once the student has grasped the calculations with absolute precision, the question of
relative precision poses few new problems, although it is helpful to review:
a. what is meant by relative precision
b. how relative precision changes the calculation formula so that one needs an estimate
of the coefficient of variation in order to solve for the sample size.
6. Turn then to a discussion of multiple objectives. Point out that each objective requires a
separate calculation of sample size and the tradeoffs among objectives one is forced to
make if the calculations do not all produce the same sample size.
H
Most students find the fact that
some initial estimate of is needed
in order to solve for the size of the
sample so that can then be
estimated by p disconcerting. Thus, zp p
it is helpful to spend a little time
discussing how such estimates
might be generated because
marketing managers must provide
these very estimates to the
researcher.
10. Finally, discuss the question of sample size determination based on having sufficient
observations in each cell of a cross-tabulation table to have confidence in the conclusions
drawn. Begin with a two-way tabulation and then progress to a three-way. It is
particularly helpful if the students have been forced to first specify the factors that might
influence some variable of interest, e.g., success in college. While they are generally
displeased by only taking account of one of these variables in a two-way table, they
appreciate the problems and the size of the sample needed to adequately answer the
problem as one then moves to three-way tables and beyond.
z
H=
n
or
n= (z)2 (σ)2
(H)2
= (2)2(67)2
(20)2
= 17956
400
= 45
z
H=
n
or
n= (z)2 (σ)2
(H)2
= (2)2(0.5)2
(1)2
= 1
z
H=
n
or
n= (z)2 (σ)2
(H)2
= (2)2 (6)2
(3)2
= 144
9
= 16
b. If expenditures on repairs is the most important and the length of service contract
the least important, management should select a sample size of n=45.
= 100 + (2)( 60 )
√ 100
= 100 + 12
The interval is narrower than planned because the population standard deviation
was initially overestimated. The obtained precision is greater than the desired
precision.
2. a. With a desired precision of +0.5 ounce and a 95 percent confidence level, the
calculation of the sample size is
z
H=
n
or
n = (z)2(σ)2
(H)2
= (2)2(4)2
(0.5)2
= 256
b. With a desired precision of +0.25 ounce and a 99 percent confidence interval, the
calculation of the sample is
z
H=
n
n = (z)2(σ)2
(H)2
= (3)2(4)2
(0.25)2
= 2304
There is a tradeoff between sample size on one hand and precision and confidence
on the other. The sample size necessary for twice the precision (H=0.25 vs. 0.50)
and 99 percent confidence versus 95 percent confidence (z=3 vs. 2) is nine times
larger.
3. a. The range is $60 (people who live nearby spend $0, people who come from 250
miles times 24 cents = $60 expenditure) and the standard deviation is estimated to
be $10 (assume normal, divide by 6). With a desired precision of +50 cents and a
95 percent confidence interval, the calculation of the sample size is
( z ) 2 ( ) 2
n=
(H) 2
= (2)2(10)2
(.50)2
= 1600
ˆ s
= x ( z ) = x ( z )
n n
15.00
= 24 (2)
1600
= 24 (0.750)
= 23.25 24.75
The interval is narrower than planned as the standard deviation was overestimated
using the estimated range. The estimate is more precise than desired because of this
H=zp
(1 − )
=z
n
z 2 ()(1 − )
or n=
( H) 2
= (2)2(.2)(.8)
(.03)2
= 711
(b) With a desired precision of +1 hour and a 95 percent confidence interval, the
calculation of the sample size is
z
H=
n
( z ) 2 ( ) 2
or n=
(H) 2
n = (2)2(5)2
(1)2
= 100
c. As both variables are considered important for the study the larger sample size of
711 should be chosen.
d. The 95 percent confidence interval for the percentage of individuals owning video
games is calculated as:
p + (z)(sp)
p(1 − p)
= p (z)
n
(.30 )(.70 )
= 0.30 (2)
711
= 0.30 + (2)(.017)
= 0.30 + 0.034
x (z)s x
s
x (z)
n
4
= 13 + (2)
711
= 13 + 0.3
The obtained precision is greater than the desired precision. The interval is
narrower than desired since the estimated population standard deviation was larger
than the sample standard deviation.
. a. Assume that the proportion is .5 since this will result in the largest possible sample
size or the worst outcome. With a desired precision of +.05 and a 90 percent
confidence interval, the calculation of the sample size is
H = zp
(1 − )
=z
n
z 2 ()(1 − )
n=
( H) 2
n = (1.645)2(.5)(.5)
(.05)2
= 271
p + (z)(sp)
p(1 − p)
= p (z)
n
(.20 )(.80 )
= 0.20 (1.645 )
271
= 0.20 + (1.645)(.024)
= 0.20 + 0.039
The level of precision is greater than expected because the sample size was
estimated under the worst case scenario (α =.5). The proportion adopting the
energy-saving program was less than the estimated proportion and therefore the
interval is narrower than expected.
c. The consequence is that the proportion preferring the new brand will be estimated
with less precision than desired, while the number of hot dogs a child eats in a
month will be estimated with more precision than desired.
p+zsp =.63+1.96(.0056)=.63+.0100.
and s x = .023
Thus, 6.95<µ<7.05.
x x zs x = 20+2(.75) or 18.5<µ<21.5.
x x zs x = 20+2(.37) or 19.26<µ<20.74.
. a. Assuming a normal distribution of ages, one can calculate the estimated standard
deviation by dividing the range of expected values by 6.
Thus
n=(z2/H2)s2
=[(2)2/(.75)2](4.17)2
=302.37
=302
x x zs x = 35+2(.86) or 33.28<µ<36.72.
b.
VI. Thorndike Sports Equipment Videocase: None
Exercises
1. Assume you are a marketing research analyst for TV Institute, and you have just been
given the assignment of estimating the percentage of all American households that
watched the ABC movie last Sunday night. You have been told that your estimate should
have a precision of +1 percentage point and that there should be a 95 percent
"probability" of your being "correct" in your estimate. Your first task is to choose a
sample of the appropriate size. Make any assumptions that are necessary.
b. Compute the sample size that will satisfy the required specifications.
d. What would be the sample size if the probability of being "correct" were decreased
to 90 percent, keeping the precision at +1 percentage point?
e. If you only had enough time to take a sample of size 100, what precision could you
expect from your estimate? (Assume a 95 percent confidence interval).
f. Assume that instead of taking a sample from the entire country (60 million
households), you would like to restrict yourself to one state with 1 million
households. Would the sample size computed in part 2 be too large? Too small?
Explain.
2. Assume TV Institute has hired you to do another study estimating the average number of
hours of television viewing per week per family in the United States. You are asked to
generate an estimate within +5 hours, and further there should be 95 percent confidence
that the estimate is correct. Make any assumptions that are necessary.
a. Compute the sample size that will satisfy the required specifications.
b. What would be the required sample size if the precision were changed to +10
hours?
The Exhilarate Resort maintains a rather complete file of its guests, and management is
considering drawing a sample of people from this file. These people would then be
questioned as to whether they might patronize the resort during the fall and winter
months. The file is constructed in the following way. A separate card is prepared for
each person or group of persons on the first visit to the hotel. All subsequent visits with
the dates of such visits and the number of days stayed are recorded on the same card.
a. What statistical universe is implicit in management's choice of the sample? If
practical considerations dictate that a different universe be studied, indicate the
universe that you suggest be employed.
b. Assume now that the sample will be drawn from the guest file. Describe how you
would select a sample from this universe BY EACH of the following methods: (i)
simple random sampling; (ii) stratified sampling; (iii) cluster sampling; (iv) Which
method would you recommend and why?
c. Assume now that a simple random sample of size 600 was selected, that all 600
responded, and that 240 of those queried expressed an interest in the longer season.
Establish a 95 percent confidence interval for the true population proportion who
are interested in the longer season.
4. The manager of a local bakery wants to determine the average expenditure per household
on bakery products. Past research indicates that the standard deviation is $10.
a. Calculate the sample size for the various levels of precision and confidence. Show
your calculations:
b. Which alternative gives you the largest estimate for sample size? Explain.
a. For the various levels of precision and confidence indicated, calculate the needed
size of the sample.
b. Which alternative gives the largest estimate of the sample size? Explain.
Answers
1. The calculation of sample size requires the determination of three items: the sampling
distribution of the statistic in question, the degree of confidence, and the degree of
precision. Items 2 and 3 are provided in the problem, the degree of confidence is
specified at 95 percent, and the degree of precision as plus or minus l percentage point.
What remains, then, is the determination of the sampling distribution of the statistic.
Since we are interested in estimating a population proportion, the appropriate statistic is
the sample proportion. Further, while the sample proportion is theoretically binomially
distributed, it is convenient to employ the normal distribution in estimating sample size.
If the results of the sample suggest that the normal approximation to the binomial might
not be appropriate, the binomial can be employed to establish the confidence interval.
a. The use of the normal distribution requires that the size of the half-interval be
equated to the appropriate number of standard deviations to determine sample
size. Here the standard deviation in question is the standard error of a proportion.
H=(z)(σp)
(1 − )
=z
n
or
z 2 ()(1 − )
n=
( H) 2
= (1.96)2(π)(1−π)
(0.01)2
b. The calculation formula suggests that we need some initial estimate of if we are
to calculate sample size to estimate π. We might use past studies to generate this
estimate, although we realize the audience for any movie is probably much more
unique than it is for any regular program. Suppose we take a past average of the
size of this listening audience which suggests = 0.3. Sample size is then
calculated to be
= (1.96)2 (.3)(.7)
(0.01)2
= 8,068
(1.96)2 (.3)(.7)
n= (0.02)2
= 2,017
(1.645)2 (.30)(.70)
n= (.01)2
= 5,683
e. If there were only enough time and money to take a sample of size n=100, the
precision expected from the estimate is calculated to be
σp = .30(.70) = .0458
100
1.96σp = .0898,
f. If instead of taking a sample from the entire country, one were to select a sample
from only one state, then he could not say a priori if the sample size calculated in
part 2 would be too large or too small. It all depends on the similarity of viewing
habits in the state in question with those of the country as a whole. If the
proportion viewing the ABC Sunday Night Movie in the state in question were
higher than that of the general population, then one would actually need a larger
sample from this state, while if the proportion viewing were less than what was
true in general, one could get by with a smaller size sample. The key, of course,
is the fact that sample size is directly proportional to the product π(1-π) and the
size of this estimated quantity for the state versus the entire country would
determine which population would require the larger size sample.
2. a. The required precision suggests H=5 and the required degree of confidence
suggests z is approximately equal to 2 (more strictly 1.96). Since we are
estimating a population mean, the appropriate statistic is the sample mean. We
can use the normal curve for the sampling distribution of this statistic because of
the operation of the Central Limit Theorem. The calculation
H = ( z ) x
H = (z)
n
or
(z) 2 () 2
n=
(H) 2
(2) 2 () 2
=
(5) 2
and in order to determine the needed sample size, we require an initial estimate of
Suppose, on the basis of past studies, we estimated σ = 20. Sample size is thus
calculated
( 2) 2 ( 20 ) 2
=
(5) 2
= 1600
25
= 64
b. If the required precision were changed to +10 hours, the sample size would be
reduced considerably, since now
(2) 2 (20) 2
n=
(10) 2
= 1600
100
= 16.
3. a. The statistical universe implicit in management's choice of the sample is all those
who have previously stayed at Exhilarate Resort. While this provides a
convenient list of this target population, it does not provide an adequate sampling
frame for what would seem to be the appropriate target population. The
appropriate target population would seem to be all those who might reasonably be
expected to frequent the Exhilarate Resort during the fall and winter months.
While this might include those who have been there before, it could also be
expected to include a great many others who have not been there before simply
because they are fall or winter sports enthusiasts and Exhilarate was not open
then. Thus, it would seem that Exhilarate might be interested in a target
population that includes all those living in some specified radius of Wisconsin
Dells. The radius would probably be less than that from which they draw summer
patrons because of the more treacherous winter driving conditions.
One way Exhilarate might proceed would be to study their guest card file to
determine what this radius would be. Then they might develop a sampling frame
by checking hunter licenses, snowmobile registrations, and other records. The
target population could then be defined as all those appearing on these lists who
live in the specified radius. While this is still not a perfect sampling frame, it is
better than the roster of previous guests.
Assuming the guest files were used to select the sample, there are still a variety of
ways one could proceed. The method actually chosen will clearly depend on the
manner in which the data are collected. Mail questionnaires would appear
appropriate for Exhilarate's problem.
b. A simple random sample could be drawn from the guest file by simply numbering
each one of the families from 1 to N and then using a table of random digits to
select the sample of size n. While easily implemented, simple random sampling
would not seem to be the preferred method. For example, a systematic sample
(cluster sample) would be easier to draw. One could use the guest file as is and
take every kth name after a random start or one would reorder the guest file
according to frequency of patronage before selecting the systematic sample. This
would be desirable if it were expected that propensity to patronize Exhilarate in
the winter might be somehow related to historical patronage. If this condition
were expected to hold, a stratified sample could also be drawn. One could stratify
the guest list by previous patronage and then select a random sample from each
subgroup. Alternatively, one might wish to group previous patrons by geographic
area if it were anticipated that area might differentially affect fall and winter
patronage.
c. Given n=600, and that 240 of those queried expressed an interest in the longer
season, p=240/600=.40. Further,
where sp = .02
or
(z) 2 () 2
n=
(H) 2
b. Alternative 9 gives the largest estimate since the desired precision and desired
confidence are highest for this alternative.
(1 − )
H=z
n
or
(z) 2
n= (1 − )
(H) 2
Desired
Precision (%)
Percentage Desired Estimated Estimated
Points Confidence Proportion Sample Size
1 6 0.99 20 400
2 2 0.90 10 225
3 6 0.99 10 225
4 4 0.95 30 525
5 2 0.90 20 400
6 2 0.99 30 4,725
7 6 0.90 30 58
8 4 0.95 10 225
9 4 0.95 20 400
b. Alternative 6 gives the largest estimate. This alternative has the greatest precision
and the highest desired confidence.
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BOOK I.
HISTORY
OF THE
G R E E K S C H O O L P H I L O S O P H Y,
WITH REFERENCE TO
P H Y S I C A L S C I E N C E.
Tίς γὰρ ἀρχὰ δέξατο ναυτιλίας;
Τίς δὲ κίνδυνος κρατεροῖς ἀδάμαντος δῆσεν ἄλοις;
. . . . . . Ἐπεὶ δ’ ἐμβόλου
Κρέμασαν ἀγκύρας ὕπερθεν
Χρυσέαν χείρεσσι λαβὼν φιάλαν
Ἀρχὸς ἐν πρύμνᾳ πατέρ Οὐρανιδᾶν
Ἐγχεικέραυνον Ζῆνα, καὶ ὠκυπόρους
Κυμάτων ῥίπας, ἀνέμων τ’ ἐκάλει,
Νύκτας τε, καὶ πόντου κελεύθους,
Ἀματά τ’ εὔφρονα, καὶ
Φιλίαν νόστοιο μοῖραν.
Pindar. Pyth. iv. 124, 349.
BOOK I.
A Tto anpursue
early period of history there appeared in men a propensity
speculative inquiries concerning the various parts and
properties of the material world. What they saw excited them to
meditate, to conjecture, and to reason: they endeavored to account
for natural events, to trace their causes, to reduce them to their
principles. This habit of mind, or, at least that modification of it which
we have here to consider, seems to have been first unfolded among
the Greeks. And during that obscure introductory interval which
elapsed while the speculative tendencies of men were as yet hardly
disentangled from the practical, those who were most eminent in
such inquiries were distinguished by the same term of praise which
is applied to sagacity in matters of action, and were called wise men
—σοφοὶ. But when it came to be clearly felt by such persons that
their endeavors were suggested by the love of knowledge, a motive
different from the motives which lead to the wisdom of active life, a
name was adopted of a more appropriate, as well as of a more
modest signification, and they were termed philosophers, or lovers of
wisdom. This appellation is said 7 to have been first assumed by
Pythagoras. Yet he, in Herodotus, instead of having this title, is
called a powerful sophist—Ἑλλήνων οὐ τῷ ἀσθενεστάτῳ σοφιστῇ
Πυθαγόρῃ; 8 the historian using this word, as it would seem, without
intending to imply that misuse of reason which the term afterwards
came to denote. The historians of literature 56 placed Pythagoras at
the origin of the Italic School, one of the two main lines of succession
of the early Greek philosophers: but the other, the Ionic School,
which more peculiarly demands our attention, in consequence of its
character and subsequent progress, is deduced from Thales, who
preceded the age of Philosophy, and was one of the sophi, or “wise
men of Greece.”
7 Cic. Tusc. v. 3.
“One of these opinions holds that the Etesian winds [which blew
from the north] are the cause of these floods, by preventing the Nile
from flowing into the sea.” Against this the historian reasons very
simply and sensibly. “Very often when the Etesian winds do not blow,
the Nile is flooded nevertheless. And moreover, if the Etesian winds
were the cause, all other rivers, which have their course opposite to
these winds, ought to undergo the same changes as the Nile; which
the rivers of Syria and Libya so circumstanced do not.”
But the lively and garrulous Ionian immediately relaxes from this
apparent reserve. “To explain the matter more at length,” he
proceeds, “it is thus. The sun when he traverses the upper parts of
Libya, does what he commonly does in summer;—he draws the
water to him (ἕλκει ἐπ’ ἑωϋτὸν τὸ ὕδωρ), and having thus drawn it,
he pushes it to the upper regions (of the air probably), and then the
winds take it and disperse it till they dissolve in moisture. And thus
the winds which blow from those countries, Libs and Notus, are the
most moist of all winds. Now when the winter relaxes and the sun
returns to the north, he still draws water from all the rivers, but they
are increased by showers and rain torrents so that they are in flood
till the summer comes; and then, the rain falling and the sun still
drawing them, they become small. But the Nile, not being fed by
rains, yet being drawn by the sun, is, alone of all rivers, much more
scanty in the winter than in the summer. For in summer it is drawn
like all other rivers, but in winter it alone has its supplies shut up. And
in this way, I have been led to think the sun is the cause of the
occurrence in question.” We may remark that the historian here
appears to 60 ascribe the inequality of the Nile at different seasons to
the influence of the sun upon its springs alone, the other cause of
change, the rains being here excluded; and that, on this supposition,
the same relative effects would be produced whether the sun
increase the sources in winter by melting the snows, or diminish
them in summer by what he calls drawing them upwards.
But this was not the direction which the Greek speculators took.
On the contrary; as soon as they had introduced into their philosophy
any abstract and general conceptions, they proceeded to scrutinize
these by the internal light of the mind alone, without any longer
looking abroad into the world of sense. They took for granted that
philosophy must result from the relations of those notions which are
involved in the common use of language, and they proceeded to
seek their philosophical doctrines by studying such notions. They
ought to have reformed and fixed their usual conceptions by
Observation; they only analyzed and expanded them by Reflection:
they ought to have sought by trial, among the Notions which passed
through their minds, some one which admitted of exact application to
Facts; they selected arbitrarily, and, consequently, erroneously, the
Notions according to which Facts should be assembled and
arranged: they ought to have collected clear Fundamental Ideas
from the world of things by inductive acts of thought; they only
derived results by Deduction from one or other of their familiar
Conceptions. 12
12The course by which the Sciences were formed, and which is
here referred to as that which the Greeks did not follow, is
described in detail in the Philosophy, book xi., Of the Construction
of Science.
17 Timæus, p. 80.