Standard Error - Correction For Finite Population

Correction For Finite Population

The formula given above for the standard error assumes that the sample size is much smaller than the population size, so that the population can be considered to be effectively infinite in size. When the sampling fraction is large (approximately at 5% or more), the estimate of the error must be corrected by multiplying by a "finite population correction"

\text{FPC} = \sqrt{\frac{N-n}{N-1}}

to account for the added precision gained by sampling close to a larger percentage of the population. The effect of the FPC is that the error becomes zero when the sample size n is equal to the population size N.

Read more about this topic:  Standard Error

Famous quotes containing the words correction, finite and/or population:

    “There are always those who are willing to surrender local self-government and turn over their affairs to some national authority in exchange for a payment of money out of the Federal Treasury. Whenever they find some abuse needs correction in their neighborhood, instead of applying the remedy themselves they seek to have a tribunal sent on from Washington to discharge their duties for them, regardless of the fact that in accepting such supervision they are bartering away their freedom.”
    —Calvin Coolidge (1872–1933)

    “Put shortly, these are the two views, then. One, that man is intrinsically good, spoilt by circumstance; and the other that he is intrinsically limited, but disciplined by order and tradition to something fairly decent. To the one party man’s nature is like a well, to the other like a bucket. The view which regards him like a well, a reservoir full of possibilities, I call the romantic; the one which regards him as a very finite and fixed creature, I call the classical.”
    —Thomas Ernest Hulme (1883–1917)

    “I think that cars today are almost the exact equivalent of the great Gothic cathedrals: I mean the supreme creation of an era, conceived with passion by unknown artists, and consumed in image if not in usage by a whole population which appropriates them as a purely magical object.”
    —Roland Barthes (1915–1980)