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What is 'Sample Size' and Why Does It Matter?

Written by Brian L. Hill | Jun 11, 2025 12:50:13 AM

In California, there are two EEE inspection laws that apply statewide to multifamily housing: SB-721 and SB-326. Both have their own unique requirements for determining the minimum number of EEEs of each type that must be selected at random for inspection.

SB-721's sampling requirements are very simply written: "For the purposes of this section, a sample of at least 15 percent of each type of exterior elevated element shall be inspected." 

SB-326 is less straightforward: "'Statistically significant sample' means a sufficient number of units inspected to provide 95 percent confidence that the results from the sample are reflective of the whole, with a margin of error of no greater than plus or minus 5 percent."

So what does that mean in real terms?

Calculating 15% for SB-721 is fairly simple: Take the total number of EEEs in a given category (stair assemblies for example), and multiply that times 0.15, and then round up to the nearest whole number. Calculating the minimum sample size to achieve 95% confidence (plus or minus 5%) as required by SB-326 requires the use of a calculator. Calculator.net has a free sample size calculator you can use. The confidence level should be set to 95%, the Margin of Error should be 5% and total number of EEEs in a given category goes in Population Size.

In practical terms, SB-721 requires a much lower quantity of locations to be inspected than SB-326. For any EEE type that has less than 18 total locations, 100% of the locations would still need to be inspected. Here is a chart:

Want to dive deeper into the differences between SB-721 and SB-326?

To understand how the various sampling requirements might affect your property, contact Balcony Assurance Group today.