Discuss the three factors required to specify sample ...

[Marty]

Discuss the three factors required to specify sample size.

Question 2

The choice of a target segment involves information about both the size of the market and the fit with corporate goals.
 a. True
  b. False
 Indicate whether the statement is true or false

[kiamars2010]

Answer to Question 1

Three factors are required to specify sample size:
(1) Variance, or heterogeneity, of the population: this refers to the standard deviation of the population. Only a small sample is required if the population is homogeneous. As heterogeneity increases, so must sample size.
(2) Magnitude of acceptable error, or the confidence interval: indicates how precise the estimate must be.
(3) Confidence level: typically use the 95 percent confidence level. This, however, is an arbitrary decision based on convention; there is nothing sacred about the 0.05 chance level.

Answer to Question 2

True