Question

Annual starting salaries for college graduates with degrees in business administration are generally expected to be between 20000 and 35000 . Assume that a confidence interval estimate of the population mean annual starting salary is desired.

What is the planning value for the population standard deviation?

Answer 1

The planning value for the population standard deviation is of 4330.

Explanation:

Uniform probability distribution:

The uniform probability distribution has two bounds, a and b. The standard deviation is given by:

`S = \sqrt{((b-a)^2)/(12)}`

Annual starting salaries for college graduates with degrees in business administration are generally expected to be between 20000 and 35000.

Uniform in this interval, so
`a = 20000, b = 35000`

What is the planning value for the population standard deviation?

`S = \sqrt{((35000 - 20000)^2)/(12)} = 4330`

The planning value for the population standard deviation is of 4330.