Lecture 5
Lecture 5
Lecture 5
Sampling Calculation
• Recent developments in research and statistics invalidate the use of Slovin’s formula.
• More appropriate formula can be used to calculate the sample 𝑛 given the population size 𝑁 and level of significance
𝛼. This is the Lynch formula.
𝑵𝒛𝟐 𝒑(𝟏 − 𝒑)
𝒏=
𝑵𝜶𝟐 + 𝒛𝟐 𝒑(𝟏 − 𝒑)
where 𝒏 is the sample size that will be calculated given the following information:
𝑵 refers to the population size
𝜶 refers to the level of significance or the allowable sampling error
𝒛 refers to the value of the normal variables based on the confidence level
𝒑 refers to the largest possible proportion (use 50% if not sure)
• The probability of rejecting a true null hypothesis is called the level of significance denoted by 𝛼.
• The counterpart of the level of significance is the level of confidence. A 𝛼 = 0.05 implies a 95% level of confidence.
• Examples: For 𝑁 = 10,000, if 𝑛 = 4899, 𝑛 = 370 and 𝑛 = 95 for 𝛼 = 0.01, 𝛼 = 0.05, and 𝛼 = 0.10 respectively.