6.43 Survey response and margin of error.
Suppose that a business conducts a marketing survey. As is often done, the survey is conducted by telephone. As it turns out, the business was only able to illicit responses from less than 10% of the randomly chosen customers. The low response rate is attributable to many factors, including caller ID screening. Undaunted, the marketing manager was pleased with the sample results because the margin of error was quite small, and thus the manager felt that the business had a good sense of the customers’ perceptions on various issues. Do you think the small margin of error is a good measure of the accuracy of the survey’s results? Explain.
6.43
Because there is nonresponse, the accuracy is in question regardless of the small margin of error. There is no guarantee the respondents are similar to the nonrespondents.