Annual starting salaries for college graduates with degrees in business administration are generally expected to be between $45,000 and $60,000. Assume that a 95% confidence interval estimate of the population mean annual starting salary is desired.
a. What is the planning value for the population standard deviation?
b. How large a sample should be taken if the desired margin of error is $500? $200? $100?
c. Would you recommend trying to obtain the $100 margin of error? Explain.