Business researchers wish to estimate the mean quarterly earnings from a population of 600 companies. If the true population mean is 6.2 million dollars, which of the following sample sizes would be most likely to produce a sample mean statistic within $2,000 of the population mean parameter?
A) sample size 10
B) sample size 50
C) sample size 160
D) Each of the samples will be equally likely to produce a sample statistic within $2,000 of the population parameter.

Question

Quizplus · Accepted Answer

A larger sample size generally results in a sample mean that is closer to the population mean due to the law of large numbers, reducing the margin of error.

Business Researchers Wish to Estimate the Mean Quarterly Earnings from a Population