Answered: Mega-corp International knows that 30%…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Question

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Mega-corp International knows that 30% of its employees are members of a labor union.
A junior executive for the company was assigned to take a SRS of 300 of the company’s employees.
He reported that 40% of the sampled employees were members of a labor union. His department
head was skeptical and stated:
“We know that 30% of all employees are in labor unions, so I don’t see how you could take a
random sample of 300 employees and find that 40% of them are in the unions. I think you either
made an error in taking your sample or you simply faked your data.”
The junior executive replied that this is just an example of random sampling variability.
Sampling variability is the the variability that is usual to see if you took a different random sample.
It is variation that may be expected without raising questions about the population parameter.
Given this definition, is the junior executive correct that this result is reasonable based on random
sampling variability? Or is the department head correct and it is unreasonable to think that we
would get such a random sample. Explain your logic.

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