Question

# Annual starting salaries for college graduates with degrees in business administration are generally expected to be...

```Annual starting salaries for college graduates with degrees in business administration are generally expected to be between \$10,000 and \$35,000. Assume that a 95% confidence interval estimate of the population mean annual starting salary is desired. Given the information in the Microsoft Excel Online file below, construct a spreadsheet to determine how large a sample should be taken for each desired margin of error.
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 Annual starting salaries for college graduates with degrees in business administration are generally expected to be between \$10,000 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 for each desired margin of error below? Starting Salary Desired margin of error Lower 10000 400 Upper 35000 250 100
1. For a margin of error of ± \$400 , the required sample size is n =

2. For a margin of error of ± \$250 , the required sample size is n =

3. For a margin of error of ± \$100 , the required sample size is n =

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

estimated standard deviation =range/4 =(35000-10000)/4=6250

a)

 for95% CI crtiical Z          = 1.96
 margin of error E = 400 required sample size n=(zσ/E)2                  = 938

b)

 required sample size n=(zσ/E)2                  = 2401

c)

 required sample size n=(zσ/E)2                  = 15006

d)since 15006 sample size is very high and will cost a lot ,  \$100 margin of error is not recommended

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