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Customer Survey Design, Administration, and Analysis  79

        of population proportion p, where p is the real proportion of customers who
        like ABC Bank’s service. Of course, we would like  p ˆ  as close to p as
        possible. From the properties of the normal distribution, and if the random
        sampling method is used, the probability distribution of  p ˆ  is

                                    ⎛   ( p 1−  ) p ⎞
                               p ˆ ~ N p ,  n  ⎠                (4.1)
                                    ⎝

        The 100(1 − α)% confidence interval for p is
                                ( p −  ) p      ˆ( p −  ˆ) p
                                                  1
                                 1
                       ˆ p ±  Z       ≈  ˆ p ±  Z               (4.2)
                           a
                            /2
                                 n          a /2  n
                                        ˆ(1
        We can use  ∆ =  Z a/2  p −(1 n  p)  ≈  Z a/2  p − ˆ p)  to represent the half width of
                    p
                                         n
        the confidence interval for p. The magnitude of ∆ represents the accuracy
                                                p
        of   ˆ p  as an estimator of p, because
                                          =
                       Pp ˆ − ∆  p  ≤  p ≤  p ˆ + ∆  p )( −a )100 %  (4.3)
                                             1
                         (
        ∆ is also called the margin of error.
          p
            Example 4.4
            In a customer satisfaction survey, the preliminary results indicate that the pro-
            portion of unsatisfied customers is very close to the proportion of satisfied
            customers. What sample size is needed if we want the accuracy of the survey to
            be within ±3 percent of the true proportion, with 95% confidence?
            In this case, clearly p ≈ 50%, from the problem, statement, we want

                                        p −  p)
                                        (1
                               ∆ =  Z         = %3
                                p   a /2
                                          n
            Therefore
                                           p ⎞
                                  ⎛  Z  p − )  2
                                        1 (
                               n =  ⎜  a 2   ⎟                  (4.4)
                                  ⎝    ∆  p  ⎠
            is the sample size formula for this case. Specifically,
                            ⎛ 196  × 0 5 1 05 . ) ⎞ 2
                              .
                                    . (
                                        −
                         n =  ⎜             ⎟  = 1067
                                    .
                            ⎝      003      ⎠
            for this example, where Z 0.025 = 1.96.
            So a sample of 1067 or more people is needed to ensure the accuracy of ±3 percent.
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