When Determining the Sample Size for a Desired Margin of Error

question 106

Essay

When determining the sample size for a desired margin of error, the formula is $\mathrm { n } = \frac { [ \mathrm { z } \alpha / 2 ] ^ { 2 } \hat { \mathrm { p }}\hat { \mathrm { q } } } { \mathrm { E } ^ { 2 } }$ . Based on this formula, discuss the fact that sample size is not dependent on the population size; that is, it is not necessary to sample a particular percent of the population.

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Definitions:

Maximize Profits

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Conjectural Variation

An expectation of how rival firms will react to a change in the quantity and price of goods a firm markets.

Demand Function

A mathematical formula that describes the relationship between the quantity demanded of a good and its various determinants such as price, income, and substitute prices.

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