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Statistics and Probability

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Sample Size and Margin of Error

STATS-LEZ7PO

You had planned to sample 500 of your 50,000 employees regarding their opinion of possible changes in healthcare plans. Your boss, always concerned about the bottom line, wants to save money by only sampling 50 employees.

What would you tell him about using a smaller sample size?

A

A smaller sample will result in a higher margin of error; therefore, your results will be less precise.

B

A smaller sample will result in a higher confidence level; therefore, your results will be more certain.

C

A smaller sample will result in a higher non-response bias; therefore, the sample will not be representative.

D

A smaller sample will be just as good as a larger sample because it will have smaller standard error.