Chapter 12

Sampling: Final and Initial Sample Size Determination

True/False Questions

1. The confidence level is the range into which the true population parameter will fall,
assuming a given level of confidence.
(False, moderate, page 367)

2. The confidence level is the probability that a confidence interval will include the
population parameter.
(True, easy, page 367)

3. The sampling distribution is the probability of the values of a sampling statistic

computed for each possible sample that could be drawn from the target population
under a specified sampling plan.
(False, moderate, page 367)

4. The process of generalizing the sample results to the population results is called
statistical inference.
(True, moderate, page 367)

5. The concept of a sampling distribution enables us to use probability theory to make

inferences about the population values.
(True, moderate, page 367)

6. The sampling distribution of the mean is a binomial distribution.

(False, easy, page 343)

7. The z value for a point is the number of standard deviations a point is away from the
mean.
(False, moderate, page 368)

8. Assuming no measurement error, the reliability of an estimate of a population

parameter can be assessed in terms of its standard error.
(True, moderate, page 368)

9. When the sample size is 10 percent or more of the population size, the standard error
formulas will overestimate the standard deviation of the population mean or
proportion. Hence, these should be adjusted by a finite population correction factor.
(True, difficult, page 368-369)

10. The statistically determined sample size is the net or final sample size—the sample
remaining after eliminating potential respondents who do not qualify or who do not
complete the interview.
(True, moderate, page 369)

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11. In the statistical approach to determining sample size, the precision level is specified
in the end.
(False, difficult, page 369)

12. The statistical approach to determining sample size is based on the construction of
confidence intervals around sample means or proportions.
(True, easy, page 369)

13. The confidence interval approach to sample size determination is based on the
construction of confidence intervals around the means or proportions using the
standardized variate formula.
(False, moderate, page 369)

14. Specify the level of confidence is the first step in the confidence interval approach to
determining sample size.
(False, moderate, page 371)

15. When determining the sample size, if the population standard deviation, σ, is
unknown and an estimate is used, the standard deviation should be re-estimated once
the sample has been drawn. Next a revised confidence interval should be calculated to
determine the precision level actually obtained.
(True, moderate, page 371-372)

16. When using the confidence interval approach to sample size determination, in some
cases, precision is specified in relative rather than absolute terms. In other words, it
may be specified that the estimate be within plus or minus R percentage points of the
mean.
(True, moderate, page 372)

17. When using the confidence interval approach to sample size determination, if the
statistic of interest is a proportion, rather than a mean, the approach to sample size
determination is very different.
(False, moderate, page 372)

18. Survey System (www.surveysystem.com) and the Discovery Research Group

(www.drgutah.cum) are Web sites on the Internet that offer free use of sample size
and/or confidence interval calculators.
(True, moderate, page 375)

19. If the researcher is required to estimate several parameters, not just one, the
calculation of sample size in these cases should be based on a consideration of all the
parameters that must be estimated.
(True, easy, page 375)

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20. Two major nonresponse issues in sampling are improving response rates and
adjusting for nonresponse.
(True, moderate, page 377)

21. Because low response rates increase the probability of response bias, an attempt
should always be made to improve the response rate.
(False, moderate, page 378)

22. Prior notification increases response rates for samples of the general public because it
reduces surprise and uncertainty and creates a more cooperative atmosphere.
(True, easy, page 379)

23. The door-in-the-face attempt at motivating potential respondents is more effective

than foot-in-the-door.
(False, difficult, page 379)

24. Prepaid incentives have been shown to increase response rates to a greater extent than
promised incentives.
(True, easy, page 379)

25. High response rates decrease the probability that nonresponse bias is substantial.
(True, easy, page 381)

26. Nonresponse rates should always be reported and, whenever possible, the effects of
nonresponse should be estimated.
(True, easy, page 381)

27. Information on differences between respondents and nonrespondents may be obtained

from the sample itself or, it may be possible to estimate the differences from other
sources.
(True, moderate, page 381)

28. Trend analysis is an attempt to discern a trend between early and late respondents.
(True, easy, page 382)

29. When conducting marketing research in foreign countries, statistical estimation of

sample size may be difficult, as estimates of the population mean may be unavailable.
(False, difficult, page 383)

30. If statistical estimation of sample size is at all attempted, it should be realized that the
estimates of the population variance don’t vary from country to country.
(False, difficult, page 383)

31. By inflating the standard deviation, it is possible to increase the sample size and thus
the project revenue for the research firm.
(True, moderate, page 384)

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Multiple Choice Questions

32. A _____ is a summary description of a fixed characteristic or measure of the target

population. It denotes the true value that would be obtained if a census rather than a
sample was undertaken.
a. statistic
b. precision level
c. finite population correction
d. parameter
(d, moderate, page 366)

33. A _____ is a summary description of a characteristic or measure of the sample. It is

used as an estimate of the population parameter.
a. statistic
b. precision level
c. finite population correction
d. parameter
(a, moderate, page 367)

34. The ____ is a correction for overestimation of the variance of a population

parameter, e.g., a mean or proportion, when the sample size is 10 percent or more of
the population size.
a. statistic
b. precision level
c. finite population correction
d. parameter
(c, easy, page 367)

35. When estimating a population parameter by using a sample statistic, the _____ is the
desired size of the estimating interval. This is the maximum permissible difference
between the sample statistic and the population parameter.
a. statistic
b. precision level
c. finite population correction
d. parameter
(b, moderate, page 367)

36. The mathematical symbols ‘π’ and ‘p’ represent a _____ for the population and the
sampling distribution respectively.
a. proportion
b. standard deviation
c. standard error of the mean
d. variance
(a, moderate, page 367)

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37. The mathematical symbols ‘ σ X ’ and ‘ S X ’ represent a _____ for the population and
the sampling distribution respectively.
a. proportion
b. standard deviation
c. standard error of the mean
d. variance
(c, difficult, page 367)

38. Suppose a simple random sample of five hospitals is to be drawn from a population of
20 hospitals. There are 15,504 different samples of size 5 that can be drawn. The
relative frequency distribution of the values of the mean of these 15,504 different
samples would specify the _____ of the mean.
a. sampling distribution
b. normal distribution
c. confidence interval
d. confidence level
(a, difficult, page 367)

39. The _____ is called the standard error of the mean or the proportion to indicate that it
refers to a sampling distribution of the mean or the proportion, and not to a sample or
a population.
a. coefficient of variation
b. standardized variate
c. variance
d. standard deviation
(d, moderate, page 368)

40. The _____ is the standard deviation the sampling distribution of the mean or
proportion.
a. standard error of the mean
b. standardized variate
c. variance
d. standard deviation
(d, moderate, page 368)

41. The _____ for a point is the number of standard errors a point is away from the mean.
a. coefficient of variation
b. z-value
c. variance
d. standard deviation
(b, moderate, page 368)

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42. The statistically determined sample size is the net or _____.
a. incidence rate
b. initial sample size
c. completion rate
d. final sample size
(d, moderate, page 369)

43. The equation for a 95% confidence interval is _____.

a. X ± 1.65σ X
2

b. X ± 1.65σ X
c. X ± 1.96σ X
d. X ± 1.96σ X2
(c, moderate, page 370)

44. When determining the sample size, the standard deviation may not be known. Which
of the following was not mentioned in your text as a way to estimate the standard
deviation?
a. consult secondary sources
b. estimate based on researcher judgment
c. estimate from the mean
d. conduct a pilot study
(c, difficult, page 371)

45. Which of the formulas below would be used to determine the sample size using the
formula for the standard error of the mean?
a. σ X = D / z

b. n = π(1- π)z2
D2

c. n = σ2z2
D2

d. a and c are correct

(d, moderate, page 371)

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46. n = σ2z2
D2
Based on the above formula for sample size, sample size increases with increases in
all of the items below except:
a. Sample size increases with an increase in the population variability.
b. Sample size increases with an increase in the degree of confidence.
c. Sample size increases with an increase in the precision level required of the
estimate.
d. All of the above are true. Sample size increases with increases in all of the items
above.
(d, moderate, page 371)

47. Which formula would be used to determine the sample size using the formula for the
standard error of the proportion?
a. σ X = D / z

b. n = π(1- π)z2
D2

c. n = σ2z2
D2

d. a and c are correct

(b, easy, page 373)

48. In _____, cost does not enter directly into the calculation of sample size.
a. stratified sampling
b. simple random sampling
c. cluster sampling
d. a and c are correct
(b, difficult, page 376)

49. The number of interviews that must be completed is the _____.

a. incidence rate
b. initial sample size
c. completion rate
d. final sample size
(d, moderate, page 376)

50. The rate of occurrence of persons eligible to participate in the study expressed as a
percentage is the _____.
a. incidence rate
b. initial sample size
c. completion rate
d. final sample size
(a, moderate, page 376)

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51. The percentage of qualified respondents who complete the interview is the _____.
a. incidence rate
b. initial sample size
c. completion rate
d. final sample size
(c, easy, page 377)

52. Which equation is the correct equation for determining the initial sample size?
a. Final Sample Size X Incidence Rate
Completion Rate

b. Final Sample Size_______

Incidence Rate X Completion Rate

c. Completion Rate________
Incidence Rate X Final Sample Size

d. Final Sample Size X Completion Rate

Incidence Rate
(b, moderate, page 377)

53. The number of units that will have to be sampled will be determined by the _____.
a. incidence rate
b. initial sample size
c. completion rate
d. final sample size
(b, easy, page 377)

54. Which statement is not true about nonresponse issues in sampling?

a. Nonresponse error is one of the most significant problems in survey research.
b. Response rates themselves do not indicate whether the respondents are
representative of the original sample.
c. For a given study, if the nonrespondents differ from the respondents on the
characteristics of interests, the sample estimates will only be mildly biased.
d. Increasing the response rate may not reduce nonresponse bias.
(c, difficult, page 377)

55. Most refusals occur _____.

a. immediately after the interviewer’s opening remarks
b. when the potential respondent first opens the mail package
c. both ‘A’ and ‘B’ are correct.
d. when the potential respondent is well into the interview
(c, easy, page 378)

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56. Which survey method has the highest refusal rate?
a. telephone
b. mall intercept
c. mail surveys
d. Internet
(c, moderate, page 378)

57. A recent study conducted by CMOR study indicated that consumers prefer _____
surveys versus the ____ method of surveys.
a. telephone; Internet
b. mail; telephone
c. Internet; mail
d. Internet; telephone
(d, difficult, page 379)

58. Which method of improving response rate involves sending potential respondents a
letter notifying them of the imminent mail, telephone, personal, or Internet survey?
a. motivating the respondents
b. follow-up
c. incentives
d. prior notification
(d, easy, page 379)

59. Which method of improving response rate involves offering potential respondents
monetary and non-monetary gifts?
a. motivating the respondents
b. follow-up
c. incentives
d. prior notification
(c, easy, page 379)

60. Which method of improving response rate involves use of the foot-in-the-door or
door-in-the-face technique?
a. motivating the respondents
b. follow-up
c. incentives
d. prior notification
(a, moderate, page 379)

61. Which method of improving response rate involves sending potential respondents a
postcard or letter to remind nonrespondents to complete and return the questionnaire?
a. motivating the respondents
b. follow-up
c. incentives
d. prior notification
(b, moderate, page 379-380)

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62. Which statement is not true about not-at-homes?
a. People with small children are more likely to be at home than single or divorced
people.
b. Consumers are more likely to be at home on weekdays than on weekends.
c. Consumers are more likely to be at home in the evening as opposed to during the
afternoon.
d. Pre-notification and appointments increase the likelihood that the respondent will
be at home when contact is attempted.
(b, difficult, page 380)

63. Which method of adjusting for nonresponse has the researcher contacting a sub-
sample of the nonrespondents; projecting the values obtained from the sub-sample to
all respondents; then adjusting the survey results to account for nonresponse?
a. substitution
b. sub-sampling of nonrespondents
c. subjective estimates
d. replacement
(b, easy, page 381)

64. Which method of adjusting for nonresponse involves evaluating the likely effects of
nonresponse based on experience and available information?
a. substitution
b. sub-sampling of nonrespondents
c. subjective estimates
d. replacement
(c, moderate, page 382)

65. _____ is a method of adjusting for nonresponse in which the researcher tries to
discern a trend between early and late respondents. This trend is projected to
nonrespondents to estimate their characteristic of interest.
a. Subjective estimates
b. Subsampling of nonrespondents
c. Imputation
d. None of the above are correct.
(d, moderate, page 382)

66. _____ is a statistical procedure that attempts to account for nonresponse by assigning
differential weights to the data depending on the response rates.
a. Weighting
b. Trend analysis
c. Subjective estimates
d. Imputation
(a, easy, page 382)

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67. _____ is a method to adjust for nonresponse by assigning the characteristic of interest
to the nonrespondents based on the similarity of the variables available for both
nonrespondents and respondents.
a. Weighting
b. Trend analysis
c. Subjective estimates
d. Imputation
(d, easy, page 383)

68. Ethical dilemmas associated with sample size determination include all of the
following except:
a. inflating the standard deviation to increase sample size and project revenue
b. what should be done when a difference in the actual standard deviation and the
estimated standard deviation results in a larger confidence interval than desired
c. investigating the possibility of non-response bias and making a reasonable effort
to adjust for it
d. All of the above pose ethical dilemmas.
(d, moderate, pages 384)

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Essay Questions

69. Discuss four of the methods of reducing refusals to participate in a survey.

Answer
• Prior notification - In prior notification, potential respondents are sent a letter
notifying them of the imminent mail, telephone, or personal survey. Prior
notification increases response rates for samples of the general public because it
reduces surprise and uncertainty and creates a more cooperative atmosphere.
• Motivating the respondents - Potential respondents can be motivated to participate
in the survey by increasing their interest and involvement. Two of the ways this
can be done are the foot-in-the-door and door-in-the-face strategies. Both
strategies attempt to obtain participation through the use of sequential requests.
As explained briefly in Chapter 6, in the foot-in-the-door strategy, the interviewer
starts with a relatively small request, such as “Will you please take five minutes to
answer five questions?,” to which a large majority of people will comply. The
small request is followed by a larger request, the critical request, that solicits
participation in the survey or experiment. The rationale is that compliance with an
initial request should increase the chances of compliance with the subsequent
request. The door in the face is the reverse strategy. The initial request is
relatively large and a majority of people refuse to comply. The large request is
followed by a smaller request, the critical request, soliciting participation in the
survey. The underlying reasoning is that the concession offered by the subsequent
critical request should increase the chances of compliance. Foot in the door is
more effective than door in the face.
• Incentives - Response rates can be increased by offering monetary as well as
nonmonetary incentives to potential respondents. Monetary incentives can be
prepaid or promised. The prepaid incentive is included with the survey or
questionnaire. The promised incentive is sent to only those respondents who
complete the survey. The most commonly used nonmonetary incentives are
premiums and rewards, such as pens, pencils, books, and offers of survey results.
Prepaid incentives have been shown to increase response rates to a greater extent
than promised incentives. The amount of incentive can vary from 10 cents to $50
or more. The amount of incentive has a positive relationship with response rate,
but the cost of large monetary incentives may outweigh the value of additional
information obtained.
• Questionnaire design and administration. - A well-designed questionnaire can
decrease the overall refusal rate as well as refusals to specific questions. Likewise,
the skill used to administer the questionnaire in telephone and personal interviews
can increase the response rate. Trained interviewers are skilled in refusal
conversion or persuasion. They do not accept a “no” response without an
additional plea. The additional plea might emphasize the brevity of the
questionnaire or importance of the respondent’s opinion. Skilled interviewers can
decrease refusals by about 7 percent on average.
• Follow-up - Follow-up, or contacting the nonrespondents periodically after the
initial contact, is particularly effective in decreasing refusals in mail surveys. The
researcher might send a postcard or letter to remind nonrespondents to complete

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 and return the questionnaire. Two or three mailings are needed, in addition to the
original one. With proper follow-up, the response rate in mail surveys can be
increased to 80 percent or more. Follow-ups can also be done by telephone, e-
mail, or personal contacts.
• Other facilitators - Personalization, or sending letters addressed to specific
individuals, is effective in increasing response rates.
(moderate, pages 379-380)

70. Discuss what can be done to reduce not-at-homes.

Answer
The percentage of not-at-homes can be substantially reduced by employing a series of
callbacks, or periodic follow-up attempts to contact nonrespondents. The decision
about the number of callbacks should weigh the benefits of reducing nonresponse bias
against the additional costs. As callbacks are completed, the callback respondents
should be compared to those who have already responded to determine the usefulness
of making further callbacks. In most consumer surveys, three to four callbacks may
be desirable. Whereas the first call yields the most responses, the second and third
calls have a higher response per call. It is important that callbacks be made and
controlled according to a prescribed plan.
(moderate, page 380)

71. Discuss why there may be ethical concerns when using the standard deviation of a
variable n determining sample size.

Answer
The sample size is dependent on the standard deviation of the variable, and there is no
way of precisely knowing the standard deviation until the data have been collected.
An estimate of the standard deviation is used to calculate the sample size. This
estimate is based on secondary data, judgment, or a small pilot study. By inflating the
standard deviation, it is possible to increase the sample size and thus the project
revenue for the research firm. It is clearly unethical to inflate the standard deviation,
and thereby increase the sample size to simply enhance the revenue of the marketing
research firm.
(difficult, pages 383-384)

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