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GROUP PRESENTATION

SAMPLE SIZE DETERMINATION


INSTRUCTOR :- SIR FARHAN AHMED
GROUP PRESENTATION
 GROUP MEMBERS

Faizan Ahmed
Ahsan Alvi
Muneeb Ahmed
Fahad Amin
TOPICS TO BE
DISCUSS
1.Determining sample size.
2.Sampling error.
3.Determining sample size if σ is unknown.
4.Discuss Ethical Issues.
5.Determining sample size on the basis of
judgment.
6.
Determining Sample
Size
Determining
Sample Size

For the For the


Mean Proportion
Determining Sample
Size
Determining
Sample Size

For the
Mean
Sampling error
(margin of error)

σ σ
X±Z e=Z
n n
Determining Sample
Size (continued )
Determining
Sample Size

For the
Mean

σ 2
Z σ 2
e=Z
Now solve for
n to get
n=
n e 2
Sampling Error
The required sample size needed to estimate a
population parameter to within a selected
margin of error (e) using a specified level of
confidence (1 - ) can be computed

The margin of error is also called sampling


error
the amount of imprecision in the estimate of
the population parameter
the amount added and subtracted to the
point estimate to form the confidence
interval

Determining Sample
Size (continued )

To determine the required sample size for


the mean, you must know:
The desired level of confidence (1 - ),
which determines the critical Z value
The acceptable sampling error, e
The standard deviation, σ
Required Sample Size
Example
If  = 45, what sample size is needed to

estimate the mean within ± 5 with 90%


confidence?

2 2 2 2
Z σ (1.645) (45)
n= 2
= 2
= 219.19
e 5

So the required sample size is n


= 220
(Always round up)
If σ is unknown
If unknown, σ can be estimated
when using the required sample
size formula
Use a value for σ that is expected
to be at least as large as the true
σ
Select a pilot sample and estimate
σ with the sample standard
deviation, S
Determining Sample
Size (continued )

To determine the required sample size for


the proportion, you must know:
The desired level of confidence (1 - ),
which determines the critical Z value
The acceptable sampling error, e
The true proportion of “successes”, π
π can be estimated with a pilot sample,
if necessary (or conservatively use π
= 0.5)
Ethical Issues
A confidence interval estimate (reflecting
sampling error) should always be included
when reporting a point estimate
The level of confidence should always be
reported
The sample size should be reported
An interpretation of the confidence interval
estimate should also be provided
Random Sampling Error and
Sample Size are Related
Costs
Large
$ Random Sample •Diminishing
returns: random
sampling error is
inversely
proportional to the
error

square root of n.

small large N
Sample size
As n increases, E decreases at a decreasing rate … …
costs & non sampling errors increase
Random Error and
Sample Size
Random sampling error varies with samples
of different sizes. -Increases in sample size
reduce sampling error at a decreasing rate.
 Diminishing returns - random sampling error is
inversely proportional to the square root of n.

Statistical Information Needed to Determine Sample Size for Questions Involving


Means
Determining Sample
Size on the Basis of
Judgment
Managerial Judgments:
Setting a sample size that is similar those in
previous studies to provide comparison with
other researchers’ judgments
Selecting the item, question, or characteristic
that will produce the largest sample size.
Collecting a large enough sample to ensure
that subgroup comparisons are reliable.
Summary
Determining sample size.
Sampling error.
Determining sample size if σ is unknown.
Discus Ethical Issues.
Determining sample size on the basis of
judgment.
 Insert a thank you slide here

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