Annual starting salaries for college graduates with degrees in business administration are generally expected to be between $39,000 and $54,000. Assume that a 95% confidence interval estimate of the population mean annual starting salary is desired. (Round your answers up to the nearest whole number.)What is the planning value for the population standard deviation? (a)How large a sample should be taken if the desired margin of error is $600? (b)How large a sample should be taken if the desired margin of error is $200? (c)How large a sample should be taken if the desired margin of error is $100? (d)Would you recommend trying to obtain the $100 margin of error? Explain.

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Asked Dec 12, 2019
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Annual starting salaries for college graduates with degrees in business administration are generally expected to be between $39,000 and $54,000. Assume that a 95% confidence interval estimate of the population mean annual starting salary is desired. (Round your answers up to the nearest whole number.)
What is the planning value for the population standard deviation?
 
(a)
How large a sample should be taken if the desired margin of error is $600?
 
(b)
How large a sample should be taken if the desired margin of error is $200?
 
(c)
How large a sample should be taken if the desired margin of error is $100?
 
(d)
Would you recommend trying to obtain the $100 margin of error? Explain.
 
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The planning value for the population standard deviation is, Мах — Min 4 $54,000 – $39,000 4 = $3, 750 Thus, the planning value for the population standard deviation is $3,750.

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(a) The sample size when the desired margin of error is $600, The sample size is calculated by using the formula: Z,:0 The critical value for 95% confidence level is 1.96. (1.96× 3,750 600 =150.0625 z 151 Thus, the required sample size must be 151.

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(b) The sample size when the desired margin of error is S200, (1.96×3,750 п 200 = 1,350.5625 z 1,351 Thus, the required sample size must be 1,351.

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