business statistics

Question

A population of values has a normal distribution with μ=79.7 and σ=87.1 You intend to draw a random sample of size n=72.

What is the mean of the distribution of sample means? 

μ¯x= 

What is the standard deviation of the distribution of sample means (i.e. the standard error)? 

(Report answer accurate to 2 decimal places.) 

σ¯x=

Answer 1

Hi Salma,

(a) For n>50, we can generally assume:

mu_x-bar=mu_population

In this case:

mu_x-bar=79.7

(b) Standard error is computed by:

SE=sigma/sqrt(n)

sigma=standard deviation

n=sample size

For our problem:

sigma=87.1

n=72

SE=87.1/sqrt(72)

SE=10.26

I hope this helps.