Question
Asked Mar 10, 2020
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Annual starting salaries for college graduates with degrees in
business administration are generally expected to be between $30,000 and
$45,000. Assume that a 95% confidence interval estimate of the population mean annual starting salary is desired.
a. What is the planning value for the population standard deviation?

How large a sample should be taken if the desired margin of error is
b.$500?

c.$200?

d.$100?

e.Would you recommend trying to obtain the $100 margin of error? Explain.

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Expert Answer

Step 1

Given:

Expected highest annual salaries=$45000

Expected lowest annual salaries=$30000

Confidence level= 0.95

Therefore,

α=1-0.95=0.05

Step 2

a)The approximate value of the population standard deviation

Probability homework question answer, step 2, image 1

Hence, the planning value for population standard deviation is $3750

Step 3

Now we have to find required sample size n for each margin of error.

Formula:

Probability homework question answer, step 3, image 1

...

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