MRKT 451 Lecture Notes - Lecture 6: Confidence Interval, Standard Deviation
2 Mar 2018
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So as you increase the sample size, the error gets smaller and your confidence interval gets smaller too: therefore, bigger the sample size, the more precise the answers, the bigger the sample size the better it is. How to interpret sample accuracy: from a report, the sample is accurate +/- 7% at the 95% level of confidence, from a news article, the accuracy of this survey is +/- 7% Interpretation: finding 60% are aware of our brand, so between 53% and 67% of the entire population is aware of our brand (95/100 times) Important to note that sample size doesn"t depend on population size. 1. 96 = 95% confidence without collecting data, p and q are unknown. Must use an estimation to accept and reject the hypothesis. Best assumption is 50/50 will assume/not assume the hypothesis. Can also use exploratory research ex: pilot surveys, secondary research etc. to get a more accurate estimate. In sum, this formula is not very useful.
