Question 9

ESG Product's research department developed a new type of environmentally friendly paper. The marketing department surveyed a random sample of 100 people. The survey is designed to gauge customer interest level in the new product. The sample indicates an average purchase of 2,500 reams per year with a variance of 160,000 reams. The researcher's supervisor is concerned that the sample size is too small. The researcher advises against increasing the sample size, stating that "there is a risk of sampling from more than one population." Determine the standard error of the sample mean and indicate whether the researcher's statement is correct or incorrect.