Annual starting salaries for college graduates with degrees in business administ

Question

Annual starting salaries for college graduates with degrees in business administration are generally expected to be between $20,000 and $35,000. Assume that a 95% confidence interval estimate of the population mean annual starting salary is desired. How large a sample should be taken if the desired margin of error is:

a. $300? Remove all commas from your answer before submitting.

b. $190? Remove all commas from your answer before submitting.

c. $100? Remove all commas from your answer before submitting.

d. Would you recommend trying to obtain the $100 margin of error? Explain.
- Select your answer -Yes, it always better to be more accurate. No, the sample size would probably be too time consuming and costly.

Explanation / Answer

Result:

Annual starting salaries for college graduates with degrees in business administration are generally expected to be between $20,000 and $35,000. Assume that a 95% confidence interval estimate of the population mean annual starting salary is desired. How large a sample should be taken if the desired margin of error is:

By range rule, sd = (35000-20000)/4 =3750

Z value for 95% =1.96

a. $300? Remove all commas from your answer before submitting.

Sample size = (z2*s2)/d2

n = (1.962*37502)/3002

=600.25

The sample size required= 601

b. $190? Remove all commas from your answer before submitting.

n = (1.962*37502)/1902

=1496.46

The sample size required= 1495

c. $100? Remove all commas from your answer before submitting.

n = (1.962*37502)/1002

=5402.25

The sample size required= 5403

d. Would you recommend trying to obtain the $100 margin of error? Explain.
- Select your answer –

No, the sample size would probably be too time consuming and costly.

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