Question

How do I calculate the associated expected cost of the panel sample and the sample error or

- 20,000

- 10,000

- 5,000

- 2,500

- 1,000

- 500

Answer 1

Consider the formula to calculate the sample error

Where,
Sample size used is represented as n

Estimated percentage in the population is represented as p and
100% –p is represented as q.
Consider the values of p and q as 50 and the cost associated for a single sample is $10.

1.Substitute 50 for p and q and 20,000 for n in Equation (1) to

±SampleError%=1.96times√(50*50)/20000

=0.7%

Thus, the value of sample error is 0.7%

As the value of conducting survey for a single sample is $10, the cost for 20,000 sample is 200000

2.Substitute 50 for p and q and 10,000 for n in Equation (1) to

±SampleError%=1.96times√(50*50)/10000

=1%

Thus, the value of sample error is 1%

As the value of conducting survey for a single sample is $10, the cost for 10,000 sample is 100000

3.Substitute 50 for p and q and 5,000 for n in Equation (1) to

±SampleError%=1.96times√(50*50)/5000 =1.4%

Thus, the value of sample error is 1.4%
As the value of conducting survey for a single sample is $10, the cost for 5,000 sample 50000

4. Substitute 50 for p and q and 2,500 for n in Equation (1) to

±SampleError%=1.96times√(50*50)/2500=2%

Thus, the value of sample error is 2%
As the value of conducting survey for a single sample is $10, the cost for 2,500 sample is 25000

5.Substitute 50 for p and q and 1,000 for n in Equation (1) to

±SampleError%=1.96times√(50*50)/1000

Thus, the value of sample error is 3.1%
As the value of conducting survey for a single sample is $10, the cost for 1,000 sample is 10000

6.Substitute 50 for p and q and 500 for n in Equation (1) to

±SampleError%=1.96times√(50*50)/500=4.4%

Thus, the value of sample error is 4.4%
As the value of conducting survey for a single sample is $10, the cost for 500 sample is 5000
Thus, if the sample size is more, the percentage of sample error is less.