SCENARIO 8-16
A random sample of 100 stores from a large chain of 500 garden supply stores was selected to determine the mean number of lawnmowers sold at an end-of-season clearance sale.The sample results indicated a mean of 6 and a standard deviation of 2 lawnmowers sold.A 95% confidence interval (5.623 to 6.377)was established based on these results.
-Referring to Scenario 8-16,if the population had consisted of 400 stores,the confidence interval estimate of the mean with finite population correction would have been wider in range.

Question

Quizplus · Accepted Answer

The finite population correction factor typically makes the confidence interval narrower, not wider, when the sample size is a significant fraction of the population. Since the population size decreased from 500 to 400, the finite population correction factor would make the confidence interval narrower, assuming the sample size remains a significant portion of the population.

SCENARIO 8-16 A Random Sample of 100 Stores from a Large Chain