Which of the following statements gives the best reason for using the finite population correction in computing the standard error of a sample mean or proportion?
A)We are sampling from a finite population.
C)It is used when sampling w/o replacement from more than 5% of the population because the central limit theorem does not hold and the standard error of the estimate (sample mean or proportion)will be too large.
D)It adjusts for the sample size being relatively large to that of the population.

Question

Which of the following statements gives the best reason for using the finite population correction in computing the standard error of a sample mean or proportion?
A)We are sampling from a finite population. 
C)It is used when sampling w/o replacement from more than 5% of the population because the central limit theorem does not hold and the standard error of the estimate (sample mean or proportion)will be too large. 
D)It adjusts for the sample size being relatively large to that of the population.

Quizplus · Accepted Answer

The finite population correction is used when sampling without replacement from more than 5% of the population because the central limit theorem does not hold and the standard error of the estimate (sample mean or proportion) will be too large. Therefore, C is the best choice as it provides a clear and accurate explanation for the reason behind using the finite population correction. The finite population correction is used when sampling without replacement from more than 5% of the population because the central limit theorem does not hold and the standard error of the estimate (sample mean or proportion) will be too large. This is the most accurate reason for using the correction.

Which of the Following Statements Gives the Best Reason for Using