Finite Population Correction (FPC) Factor

The finite population correction (fpc) factor is used to adjust a variance estimate for an estimated mean or total, so that this variance only applies to the portion of the population that is not in the sample. That is, variance is estimated from the sample, but through the fpc it is used to assess the error in estimating a mean or a total, which is due to the fact that not all data from the finite population are observed.

This concept is found throughout sample survey statistics, but this entry concentrates on the simplest of design-based sample survey statistics, simple random [Page 285]sampling (without replacement). A sample of n observations for a data element of interest, say, pairs of shoes sold, are randomly selected from the ...