As we have learned above, the right sample size is essential for the success of data collection in a market research study. But is there a correct number for sample size? What parameters decide the sample size? What are the distribution methods of the survey? To understand all of this and make an informed calculation of the right sample size, it is first essential to understand four important variables that form the basic characteristics of a sample. They are:
Population size: The population size is all the people that can be considered for the research study. This number, in most cases, runs into huge amounts. For example, the population of the United States is 327 million. But in market research, it is impossible to consider all of them for the research study.
The margin of error (confidence interval): The margin of error is depicted by a percentage that is a statistical inference about the confidence of what number of the population depicts the actual views of the whole population. This percentage helps towards the statistical analysis in selecting a sample and how much error in this would be acceptable.
Confidence level: This metric measures where the actual mean falls within a confidence interval. The most common confidence intervals are 90%, 95%, and 99%.
Standard deviation: This metric covers the variance in a survey. A safe number to consider is .5, which would mean that the sample size has to be that large.