EXERCISES SAMPLES SIZE DETERMINATION

A. Sample size mean

1. We are about to go on a recruitment drive to hire some auditors at the entry
level. We need to decide on a competitive salary offer for these new auditors.
From talking to some HR professionals, I have made a rough estimate that
most new hires are getting starting salaries in the $38-42,000 range and the
average (mean) is around $39,000. The standard deviation seems to be around
$3000. I want to be 95% confident about the average salary and I am willing
to tolerate an estimate that is within $500 (plus or minus) of the true estimate.
If we are off, we can always adjust salaries at the end of the probation period.
What sample size should we use?

GIVEN: DEMAND: 𝑺𝑫
𝑵=( )𝒔𝒒𝒖𝒂𝒓𝒆
𝑺𝑬
 SD=30000  SAMPLE 𝒁𝑺
 Confidence SIZE=? = ( ) 𝒔𝒒𝒖𝒂𝒓𝒆
𝑬
level: 95%=1.96
FORMULAE:
 RME=500

 SD = standard deviation  Z= confidence =1.96

 SE = standard error
𝑀𝑅𝐸
 S=standard deviation
1.96
 MRE =margin of random  E = possible random error
error

Solution: se= 500/1.96=255.1

Then n= (3000/255.1)2=138.29 approximately
 B. Sample size proportion
2. We’ve just started a new educational TV program that teaches viewers all about
research methods!. We know from past educational TV programs that such a
program would likely capture 2 out of 10 viewers on a typical night. Let us say we
want to be 99% confident that our obtained sample proportion of viewers will differ
from the true population proportions by not more than 5%. What sample size do we
need?
GIVEN  N=?
 Z= confidence =99%= 2.58 SOLUTION AND FORMULA:
 P= estimated proportion of
 N= Z2 pq/ E2 SE= 5/2.58=1.93
successes=2
 THEN N= 2.582 *2*8/ 1.932 =
 q= estimated proportion of
106.5024/3.751=28.39
failure=8
AROUND 29
DEMAND:

C. Sample size percentage

3. We wish to determine the required sample size with 95% confidence and 5%
error tolerance that the percentage of Canadians preferring the federal Liberal
party. A recent poll showed that 40% of Canadians questioned preferred the
Liberals. What is the required sample size?

Given DEMAND : N=?

 Z= confidence with 95%= SOLUTION AND FORMULAE
1.96
 Pc = percentage = 40% 𝑃(100−𝑃)
 𝑁 = (𝑆𝐸 )𝑆𝑄𝑈𝐴𝑅𝐸 =
𝑅𝑀𝐸
 MRE= 5% thus SE= = 40(100−40)
1.96
= 369
2.55 𝑆𝑄𝐴𝑈𝑅𝐸
5
= 2.55
1.96