Sampling: Final and Initial

Sample-Size Determination
12-2
Figure 12.7 Nonprobability Sampling Techniques
Nonprobability Sampling Techniques
Convenience
Sampling
Judgmental
Sampling
Quota
Sampling
Snowball
Sampling
12-3
Figure 12.9 Probability Sampling Techniques
Probability Sampling Techniques
Simple Random
Sampling
Cluster
Sampling
Stratified
Sampling
Systematic
Sampling
12-4
13-5
Relationship of Sample Size Determination and the Marketing Research
Process
Focus of This
Chapter
Relationship to
Previous Chapters
Relationship to Marketing
Research Process
Statistical
Approach to
Determining
Sample Size
Adjusting the
Statistically
Determined
Sample Size
Research Design
Components
Sampling Design
Process
Problem Definition
Approach to Problem
Field Work
Data Preparation
and Analysis
Report Preparation
and Presentation
Research Design
13-6
Application to Contemporary Issues
Technology Ethics International
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Opening Vignette
W
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Definitions and Symbols
The Sampling Distribution
Statistical Approach to Determining Sample Size
Confidence Interval Approach
Adjusting the Statistically Determined Sample Size
Final and Initial Sample Size Determination: An Overview
Means Proportions
13-7
Definitions and Symbols
Parameter: A parameter is a summary description of
a fixed characteristic or measure of the target
population.
A parameter denotes the true value which would be
obtained if a census rather than a sample was
undertaken.
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.
Random sampling error: The error when the sample
selected is an imperfect representation of the
population of interest.
13-8
Definitions and Symbols
Precision level: When estimating a population parameter
by using a sample statistic, the precision level is the
desired size of the estimating interval. This is the
maximum permissible difference between the sample
statistic and the population parameter.
Confidence interval: The confidence interval is the range
into which the true population parameter will fall,
assuming a given level of confidence.
Confidence level: The confidence level is the probability
that a confidence interval will include the population
parameter.
13-9
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____________________________________________________________

Variable Population Sample
____________________________________________________________
Mean

X
Proportion

t p
Variance o
2
s
2

Standard deviation o s
Size N n
Standard error of the mean
o
x S
x

Standard error of the
proportion
o
p
S
p

Standardized variate (z)
X
o


X X
S
x

___________________________________________________________


Symbols for Population and Sample Variables

Determination of Sample Size
Three Important Considerations:
Cost
Representative
Adequacy
Assumption: The population is statistically normal
In Non-Probabilistic Sampling Plan:
Rule of thumb: 1/10
th
of the population size



The finite population correction (fpc) factor is used to reduce the standard error
by a value equal to


When developing confidence interval estimates for population parameters, the fpc factor
is used when samples are selected without replacement.
13-11
Determination of Sample Size
Variable in Ratio Scale
In Probabilistic Sampling
Plan

Is S.E Known?

Is Level of Significance o
decided?

Is S.D of the Sample
Known?
N
n N
n
s
S E S
Base
x

= = . .
Formule
in Units Desired Precision . .
interval Confidence . . X
) Formula S.E.(Base Estimating
=
=
E S Z
E S Z
o
o
6
Range
S.D
S.D of Estimation
~
Determination of Sample Size
Variable in Ratio Scale
The Sample Size can be
calculated using:
Does it Require Revision?
Have you considered the
response rate?
2
2
.E S
s
n =
N
n
n
n
+
=
1
o
Determination of Sample Size
Variable is an Attribute
In Probabilistic Sampling
Plan

Is S.E Known?
Is Level of Significance o
decided?
Is P of the Sample Known?
o
o
Z
E S
E S Z
% in Desired Precision
.
interval Confidence . . X
) Formula S.E.(Base Estimating
=
=
50% p assume unknown is p if =
Determination of Sample Size
Variable is an Attribute
N >= 1000 N<1000
P-
Known
* If P is unknown assume 50%
2
) . ( E S
q p
n
sample sample
=
N
q p
E S
q p
n
sample sample
.
) . (
2
+
=
Situation1:
Colgate Palmolive India Ltd. wants to know how much does a male student
spend annually on toothpastes. They selected Delhi University as
population and need to take a sample for the study. Assume that there
were 18,000 students of which 8,300 are males. The company wants to be
reasonably confident that the amount obtained will be in with in + - Rs. 2
of the average male students' real expenditure. How large a sample will be
needed to achieve this precision? The researcher is fairly confident that
range of annual expenditure for toothpaste by male students at DU is from
0 to 80.
What will be impact on cost if precision desired is + - Re 1?
Is there a need of downward revision?
How many questionnaires shall be printed if response rate of for studies in
DU is approx. 40%?
Situation2:
If in the above example it is assumed that a preliminary study
was conducted among 40 students, and 13 of this sample
spend Rs. 20 or more annually for toothpastes. If company
wants to be 95% confident that the sample value will be
within + - 6% of the true mean. How large a sample would be
needed to provide this precision?
What would be your decision if proportion of sample
spending more than Rs. 20 is not known?
If number of students in DU are just 800. What will be the
revised sample size?
13-18
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 c qualifying factors with an incidence of Q
1
, Q
2
,
Q
3
, ...Q
C
, each expressed as a proportion,

Incidence rate = Q
1
x Q
2
x Q
3
....x Q
C

Final sample size = Initial sample size
Incidence rate x Completion rate

Sampling cost estimation
Cost of unit sample collection = c
i
Initial sample size = n
i
=
Probability considerations = p =
(overall incident rate * response rate * completion rate)
Final sample size = n = n
i
/ p
Total cost = n * c
i