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?

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Definitions:

Anxiety

A feeling of worry, nervousness, or unease, typically about an imminent event or something with an uncertain outcome.

Oral Retentive

A psychoanalytic concept referring to an individual who exhibits traits such as obsessiveness or tidiness, theorized to stem from unresolved issues during the oral stage of psychosexual development.

Reaction Formation

A defense mechanism where an individual unconsciously replaces unacceptable impulses with their opposites, often resulting in exaggerated behavior.

Unconscious Awareness

The state of having processes in the mind that occur without conscious perception, influencing thoughts, feelings, or actions.