What is finite population correction and when should I use it?

What is finite population correction and when should I use it?

Finite population correction (FPC) is a factor used in statistics to adjust the standard error when sampling without replacement from a finite population. It is particularly useful when the sample size is a significant fraction of the total population.

Can you give me an example of how to apply it?

Sure! If you have a population of 1000 individuals and you sample 100, the FPC would be calculated as √((N-n)/(N-1)), where N is the population size and n is the sample size. In this case, it would be √((1000-100)/(1000-1)).

What happens if I don't use it?

If you don't use the finite population correction when it's needed, your confidence intervals may be too wide or too narrow, leading to inaccurate conclusions about the population.

Are there any specific scenarios where it's crucial to apply FPC?

Yes, it's crucial to apply FPC when your sample size is more than 5% of the total population, as the impact on variance becomes significant.