What are the applications of finite population correction in statistics?

What are the applications of finite population correction in statistics?

Finite population correction (FPC) is used in survey sampling to adjust estimates when the sample size is a significant fraction of the total population. It helps improve the accuracy of estimates by accounting for the reduced variability in the sample.

Can you give me an example of where FPC is applied?

Sure! FPC is commonly applied in national surveys, like the Census, where the sample size is large relative to the total population. It ensures that the estimates of population parameters are more accurate.

How does FPC affect the variance of estimates?

FPC reduces the variance of estimates by adjusting the standard error. When the sample size is a large fraction of the population, the FPC factor is less than 1, which decreases the variance compared to simple random sampling.

Are there any limitations to using FPC?

Yes, one limitation is that FPC is only applicable when sampling without replacement. Additionally, it may not be necessary for very large populations where the sample size is small relative to the total.