Question

Annual starting salaries for college graduates with degrees in business administration are generally expected to be between $43,000 and $61,600. 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.)

Answer 1

Answer: 332

Explanation:

Lowest value = $43,000

Highest value = $61,600

Range = ( HV - LV ) / 4

= ( $61,600 - $43,000 ) / 4

= $4650

Where p = $4650

Required sample size (n)

n = ( Za /2 × P/E )²........... equation 1

Using 95% confidence level

Za/2 = Z 1 - 0.95

= Z0.025

= 1.96 using Z-table

Substituting Z into equation 1

n = ( 1.96 × 4650/500 )²

= ( 1.96 × 9.3 )²

= 332.25

To the nearest whole number

= 332