When all other factors are held constant, as we increase the level of accuracy, the sample size and the cost of a marketing research survey are best characterized by which of the following?
A) sample size will increase but the cost will decrease
B) sample size will decrease but the cost will increase
C) sample size and the cost of the survey will increase
D) the sample size will remain the same but the cost will increase
E) the sample size will decrease but the cost will remain the same

Question

Quizplus · Accepted Answer

When the level of accuracy is increased, the sample size must also increase to achieve a representative sample. This increases the overall cost of the survey as more participants must be recruited, compensated, and processed. Therefore, both the sample size and the cost of the survey will increase when the level of accuracy is increased.

When All Other Factors Are Held Constant, as We Increase