Definitions
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Confidence Level:
The confidence level reflects the
certitude that the answers of the sample truly reflect the
answers of the total population. Most often, a 95%
confidence level is sufficient for making business
decisions.
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Confidence Interval:
When the research is
performed at a 95% confidence level with a 2% confidence
interval, the results reflect between 93% and 97% the true
answers of the total population. A small confidence
interval is more reliable than a
large confidence interval.
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Population:
The sample size depends on the size of the
target population and the homogeneity of the market. When researching several market segments
with similar characteristics, the sample size may be
determined for the overall target market population.
When
researching several distinctive market segments, findings
cannot be lumped together and stratified sampling needs to
be used. Stratified sampling determines the sample size
for each market segment separately. Hence, the overall
sample size for a study with distinctive market segments
is much larger than for homogeneous segments.
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