Question

A person always use a sample size between cube root N and square root N, where N is the size of the population that he/she investigates. In which situations, he/she should use a correction factor for the variance of the sampling distribution while estimating a confidence interval for mean of population? What occurs when she does not use this correction factor, which problems may occur?

Answer 1

correction (fpc) factor is used to reduce the standard error by a value equal to (N − n)/(N − 1) . When developing confidence interval estimates for population parameters, the correction factor is used when samples are selected without replacement

Correction factor is needed because under these circumstances, the Central Limit Theorem doesn’t hold and the standard error of the estimate.A factor that is multiplied with the result of an equation to correct for a known amount of systematic error.