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In Exercises 6.109 to 6.111 , we examine the effect of different inputs on determining the sample size needed. Find the sample size needed to give, with \(95 \%\) confidence, a margin of error within ±10 . Within ±5 . Within ±1 . Assume that we use \(\tilde{\sigma}=30\) as our estimate of the standard deviation in each case. Comment on the relationship between the sample size and the margin of error.

Short Answer

Expert verified
The margin of error being ±10 results in a sample size of roughly 35. For a margin of error of ±5, the sample size is approximately 138. Lastly, for the smallest margin of error, ±1, the sample size goes up to about 3456. The smaller the margin of error, the larger the sample size needed thus indicating that for more precision a larger sample size is required.

Step by step solution

01

Setup the equation

Firstly, get the z-score, \(Z_{\frac{\alpha}{2}}\), for the desired 95% confidence level. For a two-tail test, the z-score is approximately 1.96. Secondly, solve the formula for the sample size \(n = \frac{(Z_{\frac{\alpha}{2}} \cdot \sigma)^{2}}{E^{2}}\) for each of the three different margin of errors.
02

Calculate sample size for margin of error ±10

Substitute the values into the equation, where \(Z_{\frac{\alpha}{2}}\) is 1.96, \(\sigma\) is 30, and \(E\) is 10. Thus, calculate the sample size, where \(n = \frac{(1.96 \cdot 30)^{2}}{10^{2}}\).
03

Calculate sample size for margin of error ±5

Repeat the previous process but this time use \(E=5\), thus \(n = \frac{(1.96 \cdot 30)^{2}}{5^{2}}\).
04

Calculate sample size for margin of error ±1

Again, substitute the values into the equation, this time with \(E=1\), and solve for \(n\), resulting in \(n = \frac{(1.96 \cdot 30)^{2}}{1^{2}}\).
05

Comment on relationship

After obtaining all results, it can be noticed that the smaller the margin of error, the larger the calculated sample size. This explains that precision comes with the need for a larger sample size as each incremental decrease in margin of error requires an increase in the sample size.

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Margin of Error
The margin of error is a crucial concept in statistics, helping us understand how much uncertainty there is in sample estimates of a population parameter. Essentially, it tells us how accurate our sample results are likely to be. When calculating the required sample size, the margin of error directly impacts how confident we can be about our estimates. A smaller margin of error indicates a desire for more precise results.
However, achieving a smaller margin of error typically requires a larger sample size.
  • This relationship means that as we request more precision and, hence, decrease our margin of error, the number of samples needed increases substantially.
  • For example, a margin of error of ±10 may require significantly fewer samples than a margin of ±1.
Understanding this relationship helps researchers balance resource constraints, as collecting a larger sample can be more time-consuming and costly.
Confidence Interval
A confidence interval provides a range of values which is likely to contain a population parameter with a certain degree of confidence. For instance, a 95% confidence interval means we can be 95% certain that the actual parameter lies within this range.
The width of the confidence interval is influenced by a few factors, including the margin of error and sample size.
  • The greater the confidence level (for example, moving from 95% to 99%), the wider the confidence interval will be, indicating more assurance but less precision.
  • Conversely, a narrower interval with the same confidence level signifies more precision but typically requires a larger sample size.
This balance impacts research planning as it affects how researchers estimate the scope of study results in practical settings.
Standard Deviation
Standard deviation serves as a measure of variability or dispersion within a set of data. Importantly, it quantifies the amount by which individual data points differ from the average of the data set.
In sample size determination, the estimated standard deviation (\(\tilde{\sigma}\)) is used to gauge how spread out the data is likely to be. This impacts how we compute sample size because:
  • A larger standard deviation suggests a greater spread in the data, requiring us to collect more samples to accurately capture this variation.
  • Conversely, a smaller standard deviation implies a more concentrated dataset, possibly reducing the needed sample size for the same level of confidence and margin of error.
Using standard deviation effectively in sample size calculations helps improve the accuracy of statistical inferences and decisions based on data analysis.

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Most popular questions from this chapter

When we want \(95 \%\) confidence and use the conservative estimate of \(p=0.5,\) we can use the simple formula \(n=1 /(M E)^{2}\) to estimate the sample size needed for a given margin of error ME. In Exercises 6.40 to 6.43, use this formula to determine the sample size needed for the given margin of error. A margin of error of 0.05 .

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