Question

f. Given the distribution type and parameter what is the probability of seeing rates within ± 5000 of the true mean? Does the result correlate to behavior associated with the standard normal distribution? Show work that supports your answer.

The data points given were:

With the true mean calculated as : 24,387.28

Answer 1

Answer:

Given data:

10000,12500,15000,17500,20000,22500,25000,27500,30000,32500,35000,3500,40000,22506,28707,21567,23168,24782,27809,26081,31527,25964,20922,26206,20305,27316,14585,25908,25318,29754,26286,11908,24783,24184,20286,21376,29561,28873

Now to find the mean($\mu$):

Mean($\mu$)=sum of observations/number of observations

=10000+12500+15000+17500+..................................................+20286+21376+29561+28873/38

=90062/38

=23702.16

Therefore the population mean($\mu$) is 23702.16.

Therefore the probability of seeing rates within $\pm$5000 of the true mean is 24,387.28

Yes,the result correlate to behaviour associated with the standard normal distribution.