A Researcher Is Interested in Determining the Average Number of Years

question 101

Short Answer

A researcher is interested in determining the average number of years employees of a company stay with the company. If past information shows a standard deviation of 7 months, what size sample should be taken so that at 95% confidence the margin of error will be 2 months or less?

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Definitions:

Long Run

A time period in economic theory during which all factors of production and costs are variable, allowing for full adjustment to changes.

MR

Marginal Revenue refers to the increase in revenue that results from the sale of one additional unit of output.

Industry Entry

The process by which new competitors enter an existing market or industry.

Continue Operate

The decision for a business to keep running its operations despite facing challenges or not achieving expected results.