In Order to Estimate the Mean Salary for a Population

question 61

Essay

In order to estimate the mean salary for a population of 500 employees,the president of a certain company selected at random a sample of 40 employees.Would you use the finite population correction factor in calculating the standard error of the sample mean? Explain.

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Definitions:

Variable Costs

Costs that change in direct proportion to changes in the level of production or sales activity, such as raw materials and direct labor.

Fixed Costs

expenses that do not vary with changes in production volume or sales, such as rent, salaries, and insurance.

Standard Cost Accounting System

A system that assigns expected costs to products to estimate selling prices and cost control, allowing variance analysis for actual costs incurred.

Unfavorable Variances

Differences between actual and expected outcomes that negatively affect a business's financial performance.