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For a exercise I must calculate the sample size using the following formula:

$$ n=\frac{\sigma^2Z^2}{e^2} $$

where $n$ is the sample size, $\sigma$ the standard deviation, $Z$ is the critical value for the normal distribution and $e$ the error. I haven't found this model elsewhere, but for the ones I know, the error is expressed in relative values (ie. percentages) as it's the error I tolerate for my study.

I'm given the error in absolute unit values instead of relatives (ie. 30 chairs instead of 3%). Do this model allows for this? Are there models which allows for this?

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    $\begingroup$ There is no error term in the sample size formula for the mean of a normal distribution. What you call e is probably the half width of a confidence interval at the level specified by the choice of Z. $\endgroup$ Commented Mar 14, 2018 at 22:31
  • $\begingroup$ @MichaelChernick interesting that you say that, because I (finally) found a reference where a equivalent formula is given, and they call e as margin of error brownmath.com/stat/sampsiz.htm#Case0 $\endgroup$
    – Braiam
    Commented Mar 14, 2018 at 22:42
  • $\begingroup$ Margin of error is another term (used by pollsters) that represents the half-width of a confidence interval. $\endgroup$ Commented Mar 14, 2018 at 23:07

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One of the problems with teaching people a bunch of formulas instead of giving practice at how to produce them is that any slight change to the circumstances can make it impossible to see what to do - it's very "brittle" knowledge. But the robust knowledge that comes with having practice deriving the formulas from scratch is if anything easier than memorizing them.

[I don't actually know any of these formulas since they're so simple to derive from scratch, and not often needed in practice. How many times would even an avid experimenter use such a formula in a year?]

The limits of a (sufficiently*) large-sample interval for $\mu$ with known $\sigma$ would written in the form $\bar{x}\pm z_{1-\alpha/2} \sigma/\sqrt{n}$.

For an absolute error type of bound, the bound would be expressed in the form

$z_{1-\alpha/2}\, \sigma/\sqrt{n}\leq a$

from which simple algebraic manipulation - multiply both sides by the positive quantity $\sqrt{n}/a$, giving $\sqrt{n}\geq z\sigma/a$ and since both sides are non-negative, simply square both sides - gives $n\geq \frac{z^2\sigma^2}{a^2}$.

For a "relative error" type of bound, the stated bound would be of the form $z_{1-\alpha/2}\, \sigma/\sqrt{n}\leq k \mu$ for given $k$.

You could then re-arrange exactly as above to get $n\geq \frac{z^2\sigma^2}{k^2\mu^2}$. Alternatively, if you say "let $a=k\mu$" at the start, you have converted it to an absolute error and can simply use the absolute error calculation.

* I imagine you won't have been given any tools for making suitable judgements about this either.

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    $\begingroup$ The a in Glen_b' s derived formula is the half width for a 100(1-$\alpha$)% confidence interval. I object to calling it "the error" because error generally refers to a random quantity. The term margin of error is less objectionable and is very commonly used in survey sampling. $\endgroup$ Commented Mar 14, 2018 at 23:15
  • $\begingroup$ @MichaelChernick which is the cause of my confusion, as it was simply called "error". $\endgroup$
    – Braiam
    Commented Mar 14, 2018 at 23:26

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