Question

Sam runs a large chain of car repair shops. He pays his employees for 8 hours of work each day. The employees

have to log the amount of time they spend working on each job, which results in a number of billable hours for
each employee each day. Sam would like to estimate the mean number of billable hours for the large number of
employees at the company. To do so, he selects a random sample of 10 employees and asks them how many
billable hours they tend to have each day. From their responses, he constructs a 95% confidence interval for the
true mean number of billable hours for all employees in the company. Which of the following may have an impact
on the confidence interval, but is not accounted for by the margin of error?
response bias
nonresponse bias
sampling variation
undercoverage bias

Answer 1

Nonresponse bias may have an impact on the confidence interval, but is not accounted for by the margin of error.

Step-by-step explanation:

The factor that may have an impact on the confidence interval but is not accounted for by the margin of error is nonresponse bias.

Nonresponse bias occurs when the individuals who do not respond to the survey have different characteristics than those who do respond, resulting in a biased sample. This can impact the estimated mean number of billable hours for all employees in the company.

To account for nonresponse bias, Sam could consider implementing strategies to encourage more employees to respond to the survey or use statistical techniques to adjust for potential bias in the sample.