Sampling Distribution

Point & Interval

Estimation
Census & Sample-
 Census/Complete Enumeration survey
method, data are collected for each
and every unit of the population/
universe which is the complete set of
items which are of interest in any
particular situation.

 Sample is used to describe a portion

chosen from sample.
Sampling
 Study of sample is sampling.

 In sampling technique instead of

every unit of the population only a
part of the population is studied and
the conclusions are drawn on that
basis for the entire universe.

 A process of learning about the

population on the basis of a sample
drawn from it.
 Statistic & Parameter-
 Statistics: describes the characteristics
of a sample.
 The values obtained from the study of
sample such as mean, median,standard
deviation etc.

 Parameter: describes the characteristics

of a population.
 The values obtained from the population
such as mean, median, standard deviation
etc.
 POPULATION SAMPLE
DEFINITION Collection of Part or
items being portion of the
considered population
chosen for
study
PROPERTIES Parameters statistics

SYMBOLS Population Sample size=n

size=N
x
Population Sample mean=
mean=
Population s.d Sample s.d= s
 Methods of Sampling

Probability/Random Non-Prob/Non-random

-Simple/ -Judgment/
Unrestricted Purposive
-Stratified -Snowball
-Systematic
-Convenience
-Cluster/Multistage
 Random Versus Nonrandom
Sampling
 Nonrandom Sampling - Every unit of the
population does not have the same
probability of being included in the sample
 Random sampling - Every unit of the
population has the same probability of
being included in the sample.
Random Sampling Techniques
 Simple Random Sample – basis for other
random sampling techniques
– Each unit is numbered from 1 to N (the size of
the population)
– A random number generator can be used to
select
n items that form the sample
 Random Sampling Techniques
 Stratified Random Sample
– The population is broken down into strata with like characteristics
(i.e. men and women OR old, young, and middle-aged people)
– Efficient when differences between strata exist
– Proportionate (% of the sample from each stratum equals % that
each stratum is within the whole population)
 Systematic Random Sample
– Define k = N/n. Choose one random unit from first k units, and
then select every kth unit from there.
 Cluster (or Area) Sampling
– The population is in pre-determined clusters (students in classes,
apples on trees, etc.)
– A random sample of clusters is chosen and all or some units
within the cluster is used as the sample
 Simple Random Sample:
Population Members
01 Alaska Airlines 11 DuPont 21 Lucent
02 Alcoa 12 Exxon Mobil 22 Mattel
03 Ashland 13 General Dynamics 23 Mead
04 Bank of America 14 General Electric 24 Microsoft
05 BellSouth 15 General Mills 25 Occidental Petroleum
06 Chevron 16 Halliburton 26 JCPenney
07 Citigroup 17 IBM 27 Procter & Gamble
08 Clorox 18 Kellog 28 Ryder
09 Delta Air Lines 19 KMart 29 Sears
10 Disney 20 Lowe’s 30 Time Warner

 Population size of N =
30
 Desired sample size of
n=6
Simple Random Sampling:
Random Number Table

Select 6 values from 1 to 30

(ignore repeats) and get
 Simple Random Sample:
Sample Members
01 Alaska Airlines 11 DuPont 21 Lucent
02 Alcoa 12 Exxon Mobil 22 Mattel
03 Ashland 13 General Dynamics 23 Mead
04 Bank of America 14 General Electric 24 Microsoft
05 BellSouth 15 General Mills 25 Occidental Petroleum
06 Chevron 16 Halliburton 26 JCPenney
07 Citigroup 17 IBM 27 Procter & Gamble
08 Clorox 18 Kellog 28 Ryder
09 Delta Air Lines 19 KMart 29 Sears
10 Disney 20 Lowe’s 30 Time Warner
 Systematic Sampling: Example
 Purchase orders for the previous fiscal year
are serialized 1 to 10,000 (N = 10,000).
 A sample of fifty (n = 50) purchases orders
is needed for an audit.
 k = 10,000/50 = 200
 Systematic Sampling: Example

 First sample element randomly selected

from the
first 200 purchase orders. Assume the 45th
purchase order was selected.
 Subsequent sample elements: 45, 245,
445, 645, . . .
Convenience (NonRandom) Sampling
 Non-Random sampling – sampling
techniques used
to select elements from the population by
any mechanism that does not involve a
random selection process
– These techniques are not desirable for making
statistical inferences
– Example – choosing members of this class as
an accurate representation of all students at
our university, selecting the first five people
that walk into a store and ask them about their
shopping preferences, etc.
Sampling Error-
 The difference between the result of
studying a sample and inferring a result
about the population , and the result of
the census of the whole population.
 The error arising due to drawing
inferences about the population on the
basis of few observations(sampling).
 Two types:
 Biased Errors
 Unbiased Errors
Biased and unbiased Errors

Biased sampling errors arise due to biasness

on the part of the investigator, biasness due
to non-response, biasness in the technique
of the approximation, biasness in the
measuring instrument.
 Unbiased sampling errors or compensatory
errors are the errors that are beyond the
control of investigator.
Introduction

The reason we select a sample is to collect data to

answer a research question about a population.

The sample results provide only estimates of the

values of the population characteristics.

The reason is simply that the sample contains only

a portion of the population.

With proper sampling methods, the sample results

can provide “good” estimates of the population
characteristics.
Selecting a Sample

 Sampling from a Finite Population

 Sampling from an Infinite Population

 Sampling from a Finite
Population
 Finite populations are often defined by
lists such as:
– Organization membership roster
– Credit card account numbers
– Inventory product numbers

 A simple random sample of size n from a finite

population of size N is a sample selected such that
each possible sample of size n has the same probability
of being selected.
 Sampling from an Infinite Population

 Sometimes we want to select a sample, but find it is

not possible to obtain a list of all elements in the
population.
 As a result, we cannot construct a frame for the
population.
 Hence, we cannot use the random number selection
procedure.
 Most often this situation occurs in infinite population
cases.
 Sampling from an Infinite Population
 Populations are often generated by an ongoing process
where there is no upper limit on the number of units
that can be generated.
 Some examples of on-going processes, with infinite
populations, are:
• parts being manufactured on a production line
• transactions occurring at a bank
• telephone calls arriving at a technical help desk
• customers entering a store
Sampling from an Infinite Population
 In the case of an infinite population, we must select
a random sample in order to make valid statistical
inferences about the population from which the
sample is taken.
 A random sample from an infinite population is a
sample selected such that the following conditions
are satisfied.
• Each element selected comes from the population
of interest.
• Each element is selected independently.
Practice Example
 1. a. AB, AC, AD, AE, BC, BD, BE, CD, CE, DE

 b. With 10 samples, each has a 1/10 probability.

 c. E and C because 8 and 0 do not apply; 5 identifies E; 7 does not
apply; 5 is skipped since E is already in the sample; 3 identifies C; 2 is
not needed since the sample of size 2 is complete.

 2. Using the last 3-digits of each 5-digit grouping provides the random
numbers:

 601, 022, 448, 147, 229, 553, 147, 289, 209

 Numbers greater than 350 do not apply and the 147 can only be used
once. Thus, the simple random sample of four includes 22, 147,
229, and 289.
 Point Estimation

Point estimation is a form of statistical inference.

In point estimation we use the data from the sample

to compute a value of a sample statistic that serves
as an estimate of a population parameter.

We refer to x-bar
x as the point estimator of the
population mean .

s is the point estimator of the population standard

deviation .

pp is the point estimator of the population proportion p.

Practical Advice

The target population is the population we want to

make inferences about.

The sampled population is the population from

which the sample is actually taken.

Whenever a sample is used to make inferences

about a population, we should make sure that the
targeted population and the sampled population
are in close agreement.
 Point Estimation
• Point estimation – a process .
• Sample mean is point estimator of population mean
• Numerical value obtained for point estimator – point estimate
 Point Estimation
• ANNUAL
SALARY AND
TRAINING
PROGRAM
STATUS
Practice Example
Solution
Applications
 Sampling Distribution of x

 Process of Statistical Inference

Population A simple random sample
with mean of n elements is selected
m=? from the population.

The value of x is used to The sample data

make inferences about provide a value for
the value of m. the sample mean x .
 Sampling Distribution
• The values of point estimates may vary in different samples

34
 Sampling Distribution
• Consider 500 samples and corresponding mean salaries

35
Sampling Distribution

36
 Sampling Distribution
• Sampling distribution of : probability distribution of all possible
values of the sample mean .
• When the expected value of a point estimator equals the population
parameter, we say the point estimator is unbiased
 Sampling Distribution
• Standard Deviation of
•
 Sampling Distribution
• Standard Error of the mean = the standard deviation of
• In the last example of EAI managers, N = 2500; sample size = 30;
the standard deviation of the population is 4000; find standard error
of the mean?
 Sampling Distribution
• Form of Sampling Distribution of
• Population has normal distribution
• The sampling distribution of is normally distributed for any sample size
• Population does not have normal distribution
• Use Central Limit Theorem
Sampling Distribution

41
 Sampling Distribution
• General statistical practices say the sampling
distribution is approximately normal when
sample size is 30 or more.
• In cases where the population is highly
skewed or outliers are present, samples of
size 50 may be needed
 Sampling Distribution

• Sampling
Distribution of EAI
Managers example

• With a population
mean of $51,800, the
personnel director
wants to know the
probability that is
between $51,300
and $52,300?

43
 Sampling Distribution

• Sampling
Distribution of EAI
Managers example

44
 Sampling Distribution

• If we increase the sample size of EAI manager

example from 30 to 100, standard error would be?
• Now, the probability that is between $51,300 and
$52,300?
• As the sample size is increased, the standard
error of the mean decreases.

45
 Sampling Distribution

• Sampling distribution of
EAI managers example
with sample size 100

46
 Sampling Distribution

• Sampling distribution of
EAI managers example
with sample size 100

47
Practice Example
Solution
Practice Example
Solution
Example

53
 Sampling Distribution:
Proportion
• Sample proportion is the point estimator of population proportion

• Where, x = no. of elements in the sample that possess characteristic of

the interest; n = sample size
Sampling Distribution:
Proportion
• For the EAI study, p = 0.60; n = 30; N = 2500
• What would be the standard error of the
proportion?

• What about the distribution?

 Sampling Distribution:
Proportion

• The value of x possess binomial distribution (Simple

random sample from a large population)
• The sampling distribution (Binomial) can be
approximated by normal distribution when
• For EAI study
 Sampling Distribution:
Proportion
• Sampling Distribution of proportion for EAI study
 Sampling Distribution:
Proportion
• Probability
of obtaining
between 0.55
& 0.65

• What will
happen when
sample size
increases to
100?
Sampling Distribution: Proportion
Practice Example
Sampling Distribution: Proportion
Practice Example
Sampling Distribution: Proportion
Practice Example
Assignment
• Prepare a Managerial Report for the
Cases:
• Marion Dairies
• Young professional Magazine
• Gulf Real estate Properties
• Metropolitan Research, inc.
• Answer the questions asked after the case
and include in the report.
• Deadline: 06.09.2023
 Margin of Error and the Interval Estimate

A point estimator cannot be expected to provide the

exact value of the population parameter.

An interval estimate can be computed by adding and

subtracting a margin of error to the point estimate.

Point Estimate +/- Margin of Error

The purpose of an interval estimate is to provide

information about how close the point estimate is to
the value of the parameter.
 Margin of Error and the Interval Estimate

The general form of an interval estimate of a

population mean is

x  Margin of Error
Interval Estimate of a Population Mean:
s Known
 In order to develop an interval estimate of a
population mean, the margin of error must be
computed using either:
• the population standard deviation s , or
• the sample standard deviation s
 s is rarely known exactly, but often a good estimate
can be obtained based on historical data or other
information.
 We refer to such cases as the s known case.
 Interval Estimate of a Population Mean:
s Known
There is a 1 -  probability that the value of a
sample mean will provide a margin of error of z /2  x
or less.

Sampling
distribution
of x

/2 1 -  of all /2

x values

x

z /2  x z /2  x
 Interval Estimate of a Population Mean:
s Known

Sampling
distribution
of x
1 -  of all
/2 /2
x values
interval
does not x

include z /2  x z /2  x interval
m includes
[------------------------- x -------------------------]
m
[------------------------- x -------------------------]
[------------------------- x -------------------------]
Interval Estimate of a Population
Mean:s Known
 Interval Estimate of m

x  z /2
n

where: x is the sample mean

1 - is the confidence coefficient
z/2 is the z value providing an area of
/2 in the upper tail of the standard
normal probability distribution
s is the population standard deviation
n is the sample size
Interval Estimate of a Population
Mean:s Known
 Values of za/2 for the Most Commonly Used
Confidence Levels

Confidence Table
Level a a/2 Look-up Area za/2
90% .10 .05 .9500 1.645
95% .05 .025 .9750 1.960
99% .01 .005 .9950 2.576
 Meaning of Confidence

Because 90% of all the intervals constructed using

x  1.645 x will contain the population mean,
we say we are 90% confident that the interval
x  1.645 x includes the population mean m.

We say that this interval has been established at the

90% confidence level.

The value .90 is referred to as the confidence

coefficient.
 Interval Estimate of a Population Mean:
 Known
 Example: Discount Sounds
Discount Sounds has 260 retail outlets throughout
the United States. The firm is evaluating a potential
location for a new outlet, based in part, on the mean
annual income of the individuals in the marketing
area of the new location.
A sample of size n = 36 was taken; the sample
mean income is $41,100. The population is not
believed to be highly skewed. The population
standard deviation is estimated to be $4,500, and the
confidence coefficient to be used in the interval
estimate is .95.
 Interval Estimate of a Population Mean:
 Known
 Example: Discount Sounds
95% of the sample means that can be observed
are within + 1.96  x of the population mean .

The margin of error is:

  4,500 
z /2  1.96    1, 470
n  36 

Thus, at 95% confidence,

the margin of error is $1,470.
 Interval Estimate of a Population
Mean: Known
 Example: Discount Sounds
Interval estimate of  is:
$41,100 + $1,470
or
$39,630 to $42,570

We are 95% confident that the interval contains the

population mean.
 Interval Estimate of a Population Mean:
s Known
 Adequate Sample Size

In most applications, a sample size of n = 30 is

adequate.

If the population distribution is highly skewed or

contains outliers, a sample size of 50 or more is
recommended.
 Interval Estimation
• Population mean: σ Known
• Consider the case of Lloyd’s Department Store to estimate the
amount spent by the customer per shopping trip (Take sample, n =
100)
• sample mean = $82; population standard deviation = $20
• Standard error?

• Find the value of z for 95% probability?

 Interval Estimation

• Find the value of z for 95%

probability?

• Interval of 78.08 to 85.92 has

been established with
confidence level of 95%

• 0.95 is confidence coefficient

• 78.08 to 85.92 – Confidence

Interval
 Interval Estimation
• Calculation of margin of error

• For the Lloyd’s example, at α = 0.10; the Estimate

would be?
• At 90% confidence level, the estimate would be?

82
 Interval Estimation: Example 1

•
 Interval Estimation: Example 2
The Wall Street Journal reported that automobile crashes
cost the United States $162 billion annually (The Wall
• Street Journal, March 5, 2008). The average cost per
person for crashes in the Tampa, Florida, area was
reported to be $1599. Suppose this average cost was
based on a sample of 50 persons who had been involved
in car crashes and that the population standard deviation
is σ $600. What is the margin of error for a 95%
confidence interval? What would you recommend if the
study required a margin of error of $150 or less?
 Interval Estimation: Example 3

•
 Interval Estimate of a Population Mean:
s Unknown
 If an estimate of the population standard deviation s
cannot be developed prior to sampling, we use the
sample standard deviation s to estimate s .
 This is the s unknown case.
 In this case, the interval estimate for m is based on the
t distribution.
 (We’ll assume for now that the population is
normally distributed.)
 t Distribution

The t distribution is a family of similar probability

distributions.

A specific t distribution depends on a parameter

known as the degrees of freedom.

Degrees of freedom refer to the number of

independent pieces of information that go into the
computation of s.
t Distribution

A t distribution with more degrees of freedom has

less dispersion.

As the degrees of freedom increases, the difference

between the t distribution and the standard
normal probability distribution becomes smaller
and smaller.
t Distribution

t distribution
Standard (20 degrees
normal of freedom)
distribution

t distribution
(10 degrees
of freedom)

z, t
0
 t Distribution

For more than 100 degrees of freedom, the standard

normal z value provides a good approximation to
the t value.

The standard normal z values can be found in the

infinite degrees ( ) row of the t distribution table.
t Distribution

Degrees Area in Upper Tail

of Freedom .20 .10 .05 .025 .01 .005
. . . . . . .
50 .849 1.299 1.676 2.009 2.403 2.678
60 .848 1.296 1.671 2.000 2.390 2.660
80 .846 1.292 1.664 1.990 2.374 2.639
100 .845 1.290 1.660 1.984 2.364 2.626
 .842 1.282 1.645 1.960 2.326 2.576

Standard normal
z values
Interval Estimate of a Population Mean:
s Unknown
 Interval Estimate
s
x  t /2
n

where: 1 - = the confidence coefficient

t/2 = the t value providing an area of /2
in the upper tail of a t distribution
with n - 1 degrees of freedom
s = the sample standard deviation
 Interval Estimate of a Population Mean:
s Unknown
 Example: Apartment Rents
A reporter for a student newspaper is writing an
article on the cost of off-campus housing. A sample
of 16 one-bedroom apartments within a half-mile of
campus resulted in a sample mean of $750 per
month and a sample standard deviation of $55.

Let us provide a 95% confidence interval estimate

of the mean rent per month for the population of one-
bedroom efficiency apartments within a half-mile of
campus. We will assume this population to be
normally distributed.
Interval Estimate of a Population Mean:
s Unknown
At 95% confidence,  = .05, and /2 = .025.
t.025 is based on n - 1 = 16 - 1 = 15 degrees of freedom.
In the t distribution table we see that t.025 = 2.131.
Degrees Area in Upper Tail
of Freedom .20 .100 .050 .025 .010 .005
15 .866 1.341 1.753 2.131 2.602 2.947
16 .865 1.337 1.746 2.120 2.583 2.921
17 .863 1.333 1.740 2.110 2.567 2.898
18 .862 1.330 1.734 2.101 2.520 2.878
19 .861 1.328 1.729 2.093 2.539 2.861
. . . . . . .
 Interval Estimate of a Population Mean:
s Unknown
 Interval Estimate
s
x  t.025 Margin
n of Error
55
750  2.131  750  29.30
16

We are 95% confident that the mean rent per month

for the population of one-bedroom apartments within
a half-mile of campus is between $720.70 and $779.30.
 Interval Estimation
• Credit Card balances for a Sample of 70 Households
Interval Estimation
• Sample mean = $9312
• Sample standard deviation = $4007
• With 95% confidence. Find CI?
• Interval estimate =
 Interval Estimation
• If the population is normally distributed, the result will be exact and
can be used for any sample size
• If population is not normally distributed, sample size n >= 30 seems
to be adequate to develop the interval estimate
• For roughly symmetric, smaller sample size as 15 can be expected
for good estimation
• If population distribution is highly skewed or contains outliers,
sample size of more than 50 would be recommended
 Interval Estimation
• For small sample size (n=20)
• Sample mean & standard deviation

• Interval estimate of the population

mean
 Interval Estimation
• For small sample size (n=20)
• Inference from the distribution?
• Is estimation acceptable?
Summary of Interval Estimation Procedures
for a Population Mean

Can the
Yes population standard No
deviation s be assumed
known ?

Use the sample

standard deviation
s Known s to estimate s
Case
Use Use
 s Unknown s
x  z /2 Case x  t /2
n n
 Interval Estimation: Example 4

•
 Interval Estimation: Example 5

•
Sample Size for an Interval Estimate
of a Population Mean
Let E = the desired margin of error.

E is the amount added to and subtracted from the

point estimate to obtain an interval estimate.

If a desired margin of error is selected prior to

sampling, the sample size necessary to satisfy the
margin of error can be determined.
 Sample Size for an Interval Estimate
of a Population Mean
 Margin of Error

E  z /2
n

 Necessary Sample Size

( z / 2 ) 2  2
n
E2
Sample Size for an Interval Estimate
of a Population Mean

The Necessary Sample Size equation requires a

value for the population standard deviation s .

If s is unknown, a preliminary or planning value

for s can be used in the equation.

1. Use the estimate of the population standard

deviation computed in a previous study.

2. Use a pilot study to select a preliminary study and

use the sample standard deviation from the study.

3. Use judgment or a “best guess” for the value of s .

 Sample Size for an Interval Estimate
of a Population Mean
 Example: Discount Sounds
Recall that Discount Sounds is evaluating a
potential location for a new retail outlet, based in
part, on the mean annual income of the individuals in
the marketing area of the new location.
Suppose that Discount Sounds’ management team
wants an estimate of the population mean such that
there is a .95 probability that the sampling error is
$500 or less.
How large a sample size is needed to meet the
required precision?
Sample Size for an Interval Estimate
of a Population Mean

z /2  500
n

At 95% confidence, z.025 = 1.96. Recall that

= 4,500.

(1.96)2 (4, 500)2

n 2
 311.17  312
(500)

A sample of size 312 is needed to reach a desired

precision of + $500 at 95% confidence.
 Determining the Sample Size

• Consider a case of Rental cost of automobile in US

• mean cost = $55 per day
• Desired margin of error, E = $2
• From previous studies, preliminary standard deviation is found as
$9.65
• At 95% confidence, the sample size would be?
 Determining the Sample Size:
Example 1
•
 Determining the Sample Size:
Example 2
•
 Interval Estimate of a Population Proportion

The general form of an interval estimate of a

population proportion is
p  Margin of Error
Interval Estimate of a Population Proportion

The sampling distribution of p plays a key role in

computing the margin of error for this interval
estimate.

The sampling distribution of p can be approximated

by a normal distribution whenever np > 5 and
n(1 – p) > 5.
 Interval Estimate
of a Population Proportion
 Normal Approximation of Sampling Distribution of p

Sampling p(1  p)
distribution p 
n
of p

/2 1 -  of all /2

p values
p
p
z /2 p z /2 p
Interval Estimate
of a Population Proportion
 Interval Estimate
p (1  p )
p  z / 2
n

where: 1 - is the confidence coefficient

z/2 is the z value providing an area of
/2 in the upper tail of the standard
normal probability distribution
p is the sample proportion
 Interval Estimate of a Population Proportion

 Example: Political Science, Inc.

Political Science, Inc. (PSI) specializes in voter polls

and surveys designed to keep political office seekers
informed of their position in a race.
Using telephone surveys, PSI interviewers ask
registered voters who they would vote for if the
election were held that day.
Interval Estimate of a Population Proportion

 Example: Political Science, Inc.

In a current election campaign, PSI has just found

that 220 registered voters, out of 500 contacted, favor
a particular candidate. PSI wants to develop a 95%
confidence interval estimate for the proportion of the
population of registered voters that favor the
candidate.
Interval Estimate of a Population Proportion

p (1  p )
p  z / 2
n
where: n = 500, p= 220/500 = .44, z/2 = 1.96
.44(1  .44)
.44  1.96 = .44 + .0435
500

PSI is 95% confident that the proportion of all voters

that favor the candidate is between .3965 and .4835.
 Sample Size for an Interval Estimate
of a Population Proportion
 Margin of Error

p (1  p )
E  z / 2
n

Solving for the necessary sample size, we get

( z / 2 ) 2 p (1  p )
n
E2
However, p will not be known until after we
have selected the sample. We will use the
p value
planning
p* for .
 Sample Size for an Interval Estimate
of a Population Proportion
 Necessary Sample Size

( z / 2 ) 2 p* (1  p* )
n
E2

The planning value p* can be chosen by:

1. Using the sample proportion from a previous
sample of the same or similar units, or
2. Selecting a preliminary sample and using the
sample proportion from this sample.
3. Use judgment or a “best guess” for a p* value.
4. Otherwise, use .50 as the p* value.
 Population Proportion: Sample
Size
• Few possible values of for p*(1-p*)

•
• Thus, when no information is given regarding , the value of p* = 0.50
will give larger sample size
Sample Size for an Interval Estimate
of a Population Proportion
 Example: Political Science, Inc.

Suppose that PSI would like a .99 probability that

the sample proportion is within + .03 of the
population proportion.
How large a sample size is needed to meet the
required precision? (A previous sample of similar
units yielded .44 for the sample proportion.)
Sample Size for an Interval Estimate
of a Population Proportion

p * (1  p * )
z /2  .03
n
At 99% confidence, z.005 = 2.576. Recall that p* = .44.
( z /2 )2 p * (1  p * ) (2.576)2 (.44)(.56)
n   1817
E2 (.03) 2

A sample of size 1817 is needed to reach a desired

precision of + .03 at 99% confidence.
Sample Size for an Interval Estimate
of a Population Proportion

Note: We used .44 as the best estimate of p in the

preceding expression. If no information is available
about p, then .5 is often assumed because it provides
the highest possible sample size. If we had used
p = .5, the recommended n would have been 1843.
 Population Proportion

• Consider the case of 900 women golfers in US

• Survey found that 396 women golfers were satisfied with the
availability of tee times
• Point estimate of the proportion who were satisfied = 396/900 = 0.44
• Find CI at 95% confidence?
 Population Proportion: Sample
Size
• Consider the case of women golfers
• Desired Margin of error is 0.025 at 95% confidence
• Let us say = 0.44
• n would be?
 Population Proportion: Example
1
•
 Population Proportion: Example
2
•
 Population Proportion: Example
3
•

Quantitative Methods in Management

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