Answer :
Options
The smaller company, Company A, will have a sampling distribution with smaller standard deviation.
None of the answer options are correct.
The standard deviation of the sampling distribution of the sample mean will be smaller for the larger company, Company B, because a larger sample is being selected.
The sampling distributions of the sample means will have about the same standard deviation because, in both cases, we’re selecting 3% of the employees.
Answer:
The standard deviation of the sampling distribution of the sample mean will be smaller for the larger company, Company B, because a larger sample is being selected.
Step-by-step explanation:
Given
Company A = 5000 employees
Company B = 15,000 employees
Selection for both companies = 3%
Note that:
The larger the sample size, the smaller the variance of the sampling distribution of the mean
For company A;
3% of 5000 were selected = 150
For company B
3% of 15000 were selected = 450
Since 450 (B) is greater than 150 (A) then then the standard deviation of the sampling distribution of the sample mean will be smaller for the larger company (Company B) because a larger sample (450) is selected