In Order to Estimate the Mean Salary for a Population

question 45

Essay

In order to estimate the mean salary for a population of 500 employees, the managing director of a certain company selected at random a sample of 40 employees.
a. Would you use the finite population correction factor in calculating the standard error of the sample mean? Explain.
b. If the population standard deviation is $800, compute the standard error both with and without using the finite population correction factor.
c. What is the probability that the sample mean salary of the employees will be within ±$200 of the population mean salary?

---

Definitions:

Earned

Income received for work performed or investments. It can refer to wages, salaries, or other forms of income.

High School

A secondary school offering education from approximately ages 14 to 18, typically following elementary or middle school.

Hours

Units of time equivalent to 60 minutes, commonly used to measure the duration of events or work periods.

Earned

Income received or generated as a result of work or investment.