The Theil index measures inequality within a dataset. A small sample size often leads to unreliable results. With fewer data points, the index may not reflect the true distribution accurately. Increasing sample size improves the accuracy of the Theil index calculations. A larger sample size helps capture the full range of values in the dataset. This leads to a more precise representation of inequality levels. Researchers should consider sample size when interpreting Theil index results. Adequate data collection is crucial for meaningful and reliable inequality assessments. Therefore, a sufficient sample size is essential for accurate and trustworthy measurement of inequality using the Theil index.