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Marketing Research
Aaker, Kumar, Day and Leone
Tenth Edition
Instructors Presentation Slides

Chapter Fifteen
Sample Size and Statistical
Theory

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## Determining the Sample Size

Used when a person knows from experience what sample size to adopt

## Used when budgetary constraints dictate the size of the sample

Rule of Thumb

Sample should be large enough, so that when divided into groups, each group will have a
minimum sample size of 100 or more
If analysis involves comparison between subgroups, sample size in each subgroup should be 20
to 50
Use disproportionate sampling if one of groups of population is relatively small

Budget Constraints

Researcher must decide whether sample size dictated by budget constraints allows a worthwhile
study to be conducted

Comparative Studies

## Find similar studies and use their sample sizes as a guide

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## Factors Determining Sample Size

Number of groups and subgroups within the sample
Value of information in the study
Accuracy level required in results
Cost of sample
Variability of the population

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Population Characteristics/Parameters
Population Mean
Normally unknown
Determine value as closely as possible by taking a sample from population

Population Variance
Measure of population dispersion
Based on degree to which a response differs from population average
response
The difference of each value from its mean is squared and averaged across
all responses

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## Marketing Research 10th Edition

Population Characteristics/Parameters
The population opinion on symphony starting time (7:30 P.M. on weekdays)

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## Marketing Research 10th Edition

Sample Characteristics/Statistics
Sample mean ( X ) is used to estimate the unknown population mean
Example: A sample of symphony season-ticket holders

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## Sample Characteristics/Statistics (Contd.)

Sample mean

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Sample Reliability
X will vary from sample to sample
As sample size (n) increases, variation in X will decrease

standard error of

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Sampling Distribution
Indicates probability of getting a particular sample mean
The normal distribution of X

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## The effect of increasing sample size on the normal distribution of X

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Interval Estimation

## The difference between the sample mean ( X ) and the

population mean is the sampling error
Interval size depends on the confidence level the researcher
wants for the interval to contain the true population mean
If the population standard deviation is not known, it is
necessary to estimate it with the sample standard deviation

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## Size of Interval Estimate depends on:

Confidence level
Population standard deviation
Sample size
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## Sample Size Question

Size of the sampling error that is desired
Confidence level
Expected variance

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## Determining the Population Standard Deviation

Options:
Use a sample standard deviation obtained from a
previous comparable survey or from a pilot
survey
Estimate the sample standard deviation (s)
subjectively

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Proportions
Population variance,

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## Sample Size Formulas

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Coefficient of Variation
Researcher may require the sample estimate be within plus
or minus G percentage points of the population value
Therefore,
D = G

## C is the Coefficient of variation

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Stratified Sampling
Useful when:
The population standard deviation differs by strata
The interview cost differs by strata

## Optimal allocation of sampling budget to various strata:

Neymans solution

where

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## Allocating Sample Size to Strata

where

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