Sample Size Determination
Simple random sampling is generally used to estimate population parameters such as
means, proportions, and variances. When using`x to estimate a population mean, for
example, one also needs to know how close the estimate is to the true population mean.
The error due to sampling variability is given by the standard error of the mean, which is
used to construct a confidence interval on the true population mean. The amount of error
is determined by the sample size and is a crucial issue in sampling.
Thus, a 1 – a probability exists that the value of the sample mean will provide a sampling
error of za/2s/Ön or less. This sampling error is denoted by E. Solving the equation
This sample size will provide a point estimate having a sampling error of E or less at a
confidence level of 100(1 – a) percent.