10.3. Determining the Sample Size
Since
P X z X P X z
1 ,
2
2
n
there is a 1 probability that the value of a sample mean will provide a sampling
error of z
2
n
or less.
Margin of error:
The quantity z
2
is referred to as the margin of error.
n
Note:
The larger the sample size n is, the smaller the margin of error
is!!
The larger the population variance 2 is, the larger the margin
of error is!!
Important Result:
The desired margin of error can be obtained by choosing the sample
size.
[Derivation of this result:]
Let E be the desired margin of error. Then,
E z
z
2
z2 2
n 2 n 22
E
E
n
.
Note:
The following procedures can be used to estimate the unknown
population standard deviation
Use the sample standard deviation from a previous sample.
Use judgment or a “best guess”.
1
Example:
15
x
x 53.87, s
i 1
i
x
2
15 1
6.82, t14, 0.025 2.145
A 95% confidence interval can be obtained by
s
x t14, 0.025
n
53.87 2.145
6.82
15
53.87 3.78 .
Thus, the margin of error is 3.78.
If we want to obtain a desired margin of error E 2 for a 95% confidence interval,
then
n
z02.05 2
2
2
E
1.96 2 6.82 2
44.67 ,
22
where can be estimated by using the sample deviation from the previous sample.
Thus,
n 45 . That is, we need to have a sample of 45 observations in order
to obtain a 95% confidence interval with a desired margin of error E 2 .
Example A (continue):
A random sample of 81 workers at a company showed that they work an average of
100 hours per month with a standard deviation of 27 hours. At 95% confidence, how
many more workers need to be included in the sample to provide a confidence interval
with length 4 (i.e., the margin of error being 2)?
[solution:]
Since E 2 ,
n
z02.05 s 2
E
2
2
1.96 2 27 2
700.13 n 701 .
22
Thus, we need 701-81=620 more workers.
Online Exercise:
Exercise 10.3.1
2