Question

A cell-phone manufacturer wants to know how consumers typically use their product on a daily basis. It hires two consulting companies. MarketTech selects a random sample of 350 cell-phone users and asks whether they use their cell-phone for making phone calls, text-messaging, emailing, social media, maintain appointment, etc. Another company, Technology Research, conducts the same survey with a random sample of 75 cell-phone users. Which company will produce more accurate results? Explain.

Answer 1

1st model take 350 samples while 2nd model take 75 samples.

We know, Larger sample sizes allow hypothesis tests to detect smaller effects.In Study 1st model sample size is large enough, its more modest effect can be statistically significant.

So, company with 75 samples produce more accurate results i. e. 2nd model.