The desired margin of error is $.05. c. Annual starting salaries for college gra
ID: 2926654 • Letter: T
Question
The desired margin of error is $.05. c. Annual starting salaries for college graduates with degrees in business administration are gen- erally expected to be between $30,000 and $45,000. Assume that a 95% confidence interval estimate of the population mean annual starting salary is desired. a. What is the planning value for the population standard deviation? b. How large a sample should be taken if the desired margin of error is $500? $200? 27. $100? Would you recommend trying to obtain the $100 margin of error? Explain. c.Explanation / Answer
Solution:
planning value = (45000-30000)/4 = 15000/4 = 3750
a.
n = (Za/2* /E)^2
n = (1.96* 3750/500)^2
n = 216.09 217
b.
n = (Za/2* /E)^2
n = (1.96*3750/200)^2
n = 1350.5625 1351
c.
n = (Za/2* /E)^2
n = (1.96* 3750/100)^2
n = 5402.25 5403
d. no, because the sample size is too larger.