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Each year, Management Accounting reports the results of a salary survey of the members of the Institute of Management Accountants (IMA). On year, the 2112 members responding had a salary distribution with a 20th percentile of $35,100; a median of $50,000; and an 80th percentile of $73,000.
(a) Use this information to determine the minimum sample size that could be used in next year's survey to estimate the mean salary of IMA members to within $2000 with 98% confidence.
(b) Explain how you estimated the standard deviation required for the sample size calculation.
(c) List any assumptions you make.
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