why is it necessary to apply the finite population correction factor when a sample is a significant part of the population?

Answer :

It necessary to apply the finite population correction factor (FPC) when a sample is a significant part of the population because for more than 5% of finite population the standard error in the estimated value will come to be too big.

The formula of FPC is

FPC =[tex]\sqrt{ (N-n)/(N-1)}[/tex]

where N= population size

           n= sample size

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