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The Monthly Starting Salaries of Students Who Receive an MBA

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Short Answer

The monthly starting salaries of students who receive an MBA degree have a population standard deviation of $110. What size sample should be selected to obtain a 0.95 probability of estimating the mean monthly income within $20 or less?


Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, calculated as the square root of the variance.

Variance

A measure of the dispersion of a set of data points in a population, showing how much the data diverge from the average value.

Degrees of Freedom

The number of independent values or quantities which can vary in the calculation of a statistic, typically in the context of hypothesis testing.

F Distribution

A continuous probability distribution that arises frequently as the null distribution of a test statistic, especially in the analysis of variance (ANOVA).

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