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# Statistical Guidelines for

## Collecting KPI Data

Technical Reference
Statistical Guidelines for Collecting KPI Data 2006-04-12

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Public
2006-04-12 Statistical Guidelines for Collecting KPI Data

Contents

1. Introduction .................................................................1

## 2. KPI Data Sample Sizing..............................................1

2.1. Estimation of Proportional Frequencies ...................................1
2.2. Estimation of Time, Data Rate, and Other Quantities..............2

## TMS-06:000204 Uen Rev A

2006-04-12 Statistical Guidelines for Collecting KPI Data

1. Introduction
The accuracy of statistics is a function of the amount of data on which it is based. To
be able to compute KPIs (Key Performance Indicators) with a specified accuracy,
you must have collected a data sample of appropriate size. This document explains
how to calculate that sample size given the accuracy requirement.

## 2.1. Estimation of Proportional Frequencies

Many of the KPIs calculated by TEMS Investigation are estimates of the proportional
frequency (probability) of a specific event (e.g. Data Transfer Cut-off Ratio). The
larger the measurement sample, the more reliable the estimate. Given a desired
level of accuracy, the required sample size may be calculated as follows.

If we denote the sample size by n and the estimated proportional frequency (i.e. the
measured KPI) by f, then, using the Gaussian approximation of the binomial
distribution, we obtain the 95% confidence interval (CI) for the true proportional
frequency p as

f (1 − f )
p = f ± 1.96 ⋅
n

This means that the true proportional frequency p falls within the confidence interval

⎡ f (1 − f ) f (1 − f ) ⎤
⎢f − 1.96 ⋅ , f + 1.96 ⋅ ⎥
⎣⎢ n n ⎦⎥

## In other words, if we want a confidence interval [f – e, f + e] for p, the required

sample size is approximately

1.96 2
n= ⋅ f ⋅ (1 − f )
e2

Example:

The Attach Failure Ratio for packet-switched is estimated at f = 10% with a sample
size of n1 = 200 measurements. By the formula for p, the uncertainty of the
measurement at the 95% confidence level is e1 = 4.16%. Thus, with 95% probability,
the true proportional frequency p falls within the interval [5.84%, 14.16%].

To reduce the uncertainty to ±3% at the same confidence level, a sample size of n2
= (1.962 / 0.032) · 0.1 · 0.9 = 384 would be needed.

## TMS-06:000204 Uen Rev A 1(2)

In practice, at least 200 measurements should be performed for all KPIs defining
success or failure ratios, and preferably 500 if at all practicable.

## 2.2. Estimation of Time, Data Rate, and Other

Quantities
The remaining KPIs in TEMS Investigation constitute estimates of some quantity p
(e.g. setup time, data rate, quality) in the form of a measurement average p.
According to the central limit theorem, the distribution of the underlying
measurement samples is asymptotically Gaussian. Therefore the uncertainty of the
estimation (again assuming a 95% confidence interval) is

e = 1.96 ⋅ s n

## where the standard deviation s is the square root of the variance

∑ (x − x )2
s 2
=
n −1

and n is the sample size. The sample size corresponding to a predefined estimation
accuracy (confidence interval [f – e, f + e]) can therefore be calculated as

1.96 2 s 2
n=
e2

If measurements show a higher standard deviation than expected, the sample size
must be increased further in order to give the desired accuracy.

Example:

Attach Setup Time is estimated from a sample of size n1 = 200. The measured
standard deviation is s = 250 ms. Then e1 = 1.96 · 250 / 2001/2 = 49 ms. If the
measured average Attach Setup Time is 1820 ms, we can be 95% confident that the
true average Attach Setup Time is between 1771 and 1869 ms.

## To shrink the confidence interval so that e2 = 20 ms, a sample size of n2 = 1.962 ·

2502 / 202 = 600 would be required.

2(2) Public