You Plan to Select a Simple Random Sample to Estimate

question 96

Multiple Choice

You plan to select a simple random sample to estimate a population average.You initially decide to construct a confidence interval that is no wider than plus or minus 5.0.Making a rough estimate of the variability in the population, you determine the required sample size.Choose which of the four situations described below would require you to increase your sample size.Assume any factor not mentioned remains constant.There may be more than one answer.

• A)You want a higher level of confidence.
• B)You want a tighter interval.
• C)You decide that you can live with a lower confidence level.There is more variability in the population of values than you had first estimated.
• D)You want a tighter interval.You require a higher level of confidence.There is less variability in the population of values than you had first estimated.
• E)Both a and b are correct.

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Definitions:

Baker's Salaries

The compensation paid to individuals employed in a bakery to perform tasks such as baking, decorating, and customer service.

Goods Manufactured

The total quantity of products completed and ready for sale during a specified accounting period.

Direct Labour

The labor costs associated with employees who are directly involved in the production of goods or services.

Gross Margin

The difference between sales revenue and the cost of goods sold, showing the profitability of sales before other operating expenses are deducted.