Does sample size affect cronbach alpha?
The calculation of Cronbach's alpha does not depend on sample size. Instead, it is formed from the average correlation and the number of items included in the potential scale.
For comparison of two coefficients of Cronbach's alpha, a larger sample size is needed when testing for smaller effect sizes.
Charter (1999) stated that a minimum sample size of 400 was needed for a sufficiently precise estimate of the population coefficient alpha. Charter (2003) opined that with low sample sizes alpha coefficients can be unstable.
One can see from this formula that if you increase the number of items, you increase Cronbach's alpha. Additionally, if the average inter-item correlation is low, alpha will be low. As the average inter-item correlation increases, Cronbach's alpha increases as well (holding the number of items constant).
The alpha level used in determining the sample size in most of academic research studies are either 0.05 or 0.01. [7] Lower the alpha level, larger is the sample size. For example, a study with alpha level of 0.01 requires more subjects when compared to a study with alpha level of 0.05 for similar outcome variable.
Statistical importance of having a large sample size
Larger studies provide stronger and more reliable results because they have smaller margins of error and lower standards of deviation. (Standard deviation measures how spread out the data values are from the mean.
Assumptions for Cronbach's Alpha
In order to calculate Cronbach's Alpha, two conditions must be met. The error proportions of the items must be uncorrelated, i.e. the error proportion of one item must not be influenced by the error proportion of another item. The items must have the same proportion of true variance.
Even smaller samples
As they did not consider cases with less than four variables per component this rule should also be applied. We therefore give the following advice: Reliability analysis should not be attempted for sample sizes < 30.
In any type of testing you conduct, the correct sample size depends on a number of factors. You'll often hear that a sample size of n = 30 should be your minimum target. This should be understood that you need 30 minimum samples before you can expect a z-test analysis (normal distribution) to be valid.
Some quick rules. If you have unordered categorical data (i.e., three or more unordered categories; which you do), then you don't use Cronbach's alpha. If you have binary data (e.g., incorrect/correct data), then many people do use Cronbach's alpha, but see the Sjitsma reference given by @Momo.
What causes a low Cronbach's alpha?
A low value of alpha could be due to a low number of questions, poor inter-relatedness between items or heterogeneous constructs. For example if a low alpha is due to poor correlation between items then some should be revised or discarded.
First, alpha always has a value, which cannot be equal to the test score's reliability given the interitem covariance matrix and the usual assumptions about measurement error. Second, in practice, alpha is used more often as a measure of the test's internal consistency than as an estimate of reliability.

Cronbach's alpha is a way of assessing reliability by comparing the amount of shared variance, or covariance, among the items making up an instrument to the amount of overall variance. The idea is that if the instrument is reliable, there should be a great deal of covariance among the items relative to the variance.
70 and above is good, . 80 and above is better, and . 90 and above is best. Cronbach's alpha does come with some limitations: scores that have a low number of items associated with them tend to have lower reliability, and sample size can also influence your results for better or worse.
Cronbach's alpha will tell you if the questionnaire items you have designed are accurately measuring the variable of interest. WARNING: α is sensitive to the number of items in a test. A larger number of items can result in a larger α, and a smaller number of items in a smaller α.
Cronbach's alpha coefficient is not a statistical test – it is a coefficient of reliability, or so-called "consistency". If you increase the number of items, the Cronbach alpha coefficient will increase too. Moreover, if the average inter-item correlation is low, the alpha coefficient will be low as well.
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