Statistical Sampling in Litigation and Regulatory Proceedings: Methods, Insights, and an Economic Model of Optimal Sample Size

Abstract

A sample of elements can effectively act as a surrogate for a large population that cannot be studied due to resource constraints. Thus, in a variety of legal and regulatory matters, relying on a statistical sample may be the only feasible approach to effectively adjudicate questions of causation, liability, or damages. The current paper works through in detail some of the more salient aspects of statistical sampling and sample size determination. An economic model is presented to provide insight into the mental calculus that is theoretically involved in making decisions about sample sizes in the context of litigation.