A Researcher Wants to Estimate the Starting Salary of Assistant

question 56

Short Answer

A researcher wants to estimate the starting salary of Assistant Professors in Economics with a margin of error of $400 for a 95% confidence interval. If the standard deviation of those salaries is assumed to be $3600, what is the minimum sample size she should use?

---

Definitions:

Operating Income

Earnings before interest and taxes (EBIT) is a company's profit from normal operations, excluding non-operating income and expenses.

Return on Investment

A financial metric used to evaluate the efficiency of an investment, calculated as the net gain or loss on the investment relative to the cost of the investment.

Investment Center

A division or unit within an organization that is directly responsible for generating its own revenue as well as controlling its costs, and therefore, its profits.

Authority

The ability or entitlement to dictate actions, decide on matters, and demand adherence.