City University of Hong Kong · FACULTY OF MARKETING

MKT5612 Chap.6 Sampling Distributions and Confidence Intervals

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Chapter 6 of 7 · MKT5612

Sampling Distributions and Confidence Intervals

A population parameter is fixed but usually unknown; a sample statistic varies from one random sample to another. The sampling distribution describes that repeated-sample variation. Its centre reflects bias, while its spread is the standard error.

Larger probability samples generally narrow the distribution, which makes estimates more precise without guaranteeing that coverage, response or measurement processes are unbiased.

A confidence interval combines a sample estimate with a margin of error based on a critical value and standard error.

Planning reverses that logic: specify the desired permissible difference, confidence level and variability, then solve for sample size and round upward. The calculation is conditional on its assumptions and does not excuse an unsuitable frame or nonresponse. Interpretation should describe the long-run performance of the interval method rather than assign a probability to a fixed parameter after observing one interval.

In this chapter

What this chapter covers

  • 01

    Parameters, statistics and repeated samples

  • 02

    Sampling distributions and standard error

  • 03

    Sample size and precision

  • 04

    Confidence levels and critical values

  • 05

    Margins of error and interval interpretation

  • 06

    Permissible difference and sample-size planning

Worked example · free

Plan a mean estimate to a stated precision

Q [10 marks]. AskSia-authored practice. A pilot suggests a standard deviation of 12 units. How many completed responses are required to estimate a population mean within 2 units at a confidence level using z = 1.96? Explain the rounding and one limitation. The marks are an AskSia study allocation, not a University marking scheme.
The orange and blue curves share the same centre.The orange and blue curves share the same centre. The larger sample produces the narrower blue distribution, so extreme sample means are less likely.Both distributions centre on the same population mean; larger n narrows the spreadsmall n: widerlarge n: narrowerμ
The orange and blue curves share the same centre. The larger sample produces the narrower blue distribution, so extreme sample means are less likely.
  • 4Substitute the values into n = (zs/E)^2.
  • 2Round and state the planned completion count.
  • 4Interpret the precision and identify one design limitation.
Use n = (1.96 multiplied by 12 divided by 2) squared. The quantity inside the square is 11.76, so n = 138.2976. Round upward to 139 completed responses because rounding down would permit a margin larger than the target. The calculation plans sampling precision for the stated variability and critical value. It does not guarantee 139 invitations will yield 139 completions, and it does not correct coverage, nonresponse or measurement bias. Recruitment should therefore allow for expected response loss and preserve the intended probability design.
Sia tip — Keep units visible: the standard deviation and permissible difference must describe the same variable on the same scale.
Glossary

Key terms

Population Parameter
A fixed numerical characteristic of a population, such as its mean, that research seeks to estimate.
Sample Statistic
A numerical summary calculated from sample observations and used to estimate a population parameter.
Sampling Distribution
The probability distribution of a statistic across all samples generated by a specified sampling process.
Standard Error
The standard deviation of a statistic's sampling distribution, expressing its repeated-sample variability.
Confidence Interval
An interval produced by a method designed to cover the target parameter at a stated long-run rate.
Margin Of Error
The critical value multiplied by the standard error, determining the half-width of a confidence interval.
Permissible Difference
The largest planning error around an estimate that the researcher is willing to accept for the decision.
FAQ

Sampling Distributions and Confidence Intervals FAQ

Why must a calculated sample size be rounded upward?

The unrounded result is the minimum implied by the desired precision. Rounding downward makes the planned standard error slightly larger and fails the stated requirement, whereas rounding upward preserves or improves it.

Does doubling sample size halve the standard error?

Usually not for a mean under the basic independent-sampling relation, because standard error changes with the square root of sample size. Halving it therefore requires roughly four times as many observations, all else equal.

Does a confidence interval include nonsampling error?

The usual interval reflects sampling variability under its statistical assumptions. It does not automatically include undercoverage, selective response, flawed measurement or processing mistakes, any of which can shift a narrow interval away from the target.

Study strategy

Exam move

Practise the chapter as a direction-changing triangle. From sample size and variability, calculate standard error; from standard error and a critical value, calculate a margin; from a target margin, reverse the relation to plan sample size. Label every symbol before substituting and retain enough intermediate precision to avoid accidental underplanning.

Pair each calculation with one interpretation sentence and one assumption sentence. For visual questions, distinguish centre from width: bias shifts a sampling distribution, while increasing sample size chiefly narrows it under the basic model. Never describe a narrow interval as proof that the data-collection process was unbiased.

Make a direction table before using a calculator: tighter permissible difference raises required size, greater variability raises it, and higher confidence raises it. Use the table to reject impossible outputs. Repeat one planning problem after doubling each input separately and explain the squared relationship in words.

Keep three counts visually separate: usable responses required by precision, invitations required after response adjustment and units actually analysed. For interval interpretation, rehearse the long-run procedure statement and contrast it with the incorrect claim that a fixed parameter has a post-data probability of lying inside one observed interval. Add one nonsampling limitation beside every numerical answer.

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