In sampling analysis the most sought question is: What should be the size of the sample or how large or small should be ‗n‘? If the sample size (‗n‘) is too small, it may not serve to achieve the objectives and if it is too large, we may incur huge cost and waste resources. As a general rule, one can say that the sample must be of an optimum size i.e., it should neither be excessively large nor too small.
Technically, the sample size should be large enough to give a confidence interval of desired width and as such the size of the sample must be chosen by some logical process before sample is taken from the universe. Size of the sample should be determined by a researcher keeping in view the following points:
- Nature of universe: Universe may be either homogenous or heterogeneous in nature. If the items of the universe are homogenous, a small sample can serve the purpose. But if the items are heterogeneous, a large sample would be required. Technically, this can be termed as the dispersion factor.
- Number of classes proposed: If many class-groups (groups and sub-groups) are to be formed, a large sample would be required because a small sample might not be able to give a reasonable number of items in each class-group.
- Nature of study: If items are to be intensively and continuously studied, the sample should be small. For a general survey the size of the sample should be large, but a small sample is considered appropriate in technical surveys.
- Type of sampling: Sampling technique plays an important part in determining the size of the sample. A small random sample is apt to be much superior to a larger but badly selected sample.
- Standard of accuracy and acceptable confidence level: If the standard of accuracy or the level of precision is to be kept high, we shall require relatively larger sample. For doubling the accuracy for a fixed significance level, the sample size has to be increased fourfold.
- Availability of finance: In practice, size of the sample depends upon the amount of money available for the study purposes. This factor should be kept in view while determining the size of sample for large samples result in increasing the cost of sampling estimates.
- Other considerations: Nature of units, size of the population, size of questionnaire, availability of trained investigators, the conditions under which the sample is being conducted, the time available for completion of the study are a few other considerations to which a researcher must pay attention while selecting the size of the sample.
There are two alternative approaches for determining the size of the sample. The first approach is ―to specify the precision of estimation desired and then to determine the sample size necessary to insure it‖ and the second approach ―uses Bayesian statistics to weigh the cost of additional information against the expected value of the additional information.‖ The first approach is capable of giving a mathematical solution, and as such is a frequently used technique of determining ‗n‘. The limitation of this technique is that it does not analyse the cost of gathering information vis-a-vis the expected value of information. The second approach is theoretically
optimal, but it is seldom used because of the difficulty involved in measuring the value of information.