{Tractor Dealership Narrative} Why should the finite population correction factor (FPCF)be used for this problem? Explain.

Finite Population Correction Factor

A factor applied to the standard error or variance formulas when sampling from a finite population, reducing the sample variance or standard error to account for the finite population size.

Tractor Dealership

A business establishment that sells and sometimes services tractors and related machinery.

Audit

An official inspection of an individual's or organization's accounts, typically by an independent body.

Comprehend the principle and utilization of the finite population correction factor when estimating the standard error for small populations.
Understand the need for and application of statistical measures in auditing and detecting errors in financial records.

Verified Answer

Florita CardozaJun 12, 2024

Final Answer :

Because the population is less than 20 times the sample size (N = 925 < 20n = 2,000)the FPCF must be used in calculating the standard error of estimate of the mean.

Learning Objectives

Comprehend the principle and utilization of the finite population correction factor when estimating the standard error for small populations.
Understand the need for and application of statistical measures in auditing and detecting errors in financial records.

{Tractor Dealership Narrative} Why should the finite population correction factor (FPCF)be used for this problem? Explain.

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Learning Objectives

Learning Objectives

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