Determination of sample size

The sample size is the number of respondents that we shall target for the survey. Typically, all other
things being constant, a larger sample size will yield increased precision while making inferences /
estimated regarding population parameters. However, due to time and cost considerations, it is always
not feasible to have very large sample size. Also, after a certain level, increments in the costs and time
associated with increment in precision by increasing the sample size are not justified. Therefore, while
determining the number of respondents, Deloitte will try to ensure that the sample size is efficient and
effective in the sense that it:
i. is large enough to have right assessment of the market
ii. will hold valid for statistical analysis on data at a later stage
iii. is justifiable for the cost and precision trade-off

The sample size determination mainly depends on:

a. Precision required (e) – variability of mean / proportion
b. Confidence Level – level of confidence for inference on population parameter
c. Population standard deviation (σ ) - estimated from past experience / judgement

Based upon the parameter (whether we shall estimate population mean or population proportion) and
population properties, we may use following formulae for determining an appropriate sample size for each
of the question. Thereafter we will subjectively assess the results and will fix a number for entire survey.

Sample size when estimating mean for infinite population

• Acceptable error
e = z*(σ p /√n)
• Sample size (n) for infinite population
n = [z2* σ p
2
] / e2
where z = value of standard variate at given confidence level and σ p = population standard deviation

Sample size when estimating mean for finite population

• Acceptable error ‘e’ = z * (σ p /√n) * (N-n) ½ / (N-1)
• Sample size, n= (z2 * N *σ p
2
) / ((N-1) * e2 + z2 *σ p
2
)
N is the size of the population and (N-n)/ (N-1) ½ is the finite population multiplier.

Sample size when estimating a percentage or proportion

• Acceptable error ‘e’ = z * √(p * q /n)
• Sample size , n= (z2 *p * q* N) / ((N-1) * e2 + z2 *p *q)
Where p = sample proportion, q = 1-p, and n = sample size