According to a national survey, Americans consume an average of 36 pounds of cookie dough a year with a standard deviation of 12 pounds. A random sample of 100 people is taken. What is the probability the sampling error will be 2 pounds or less?
Solution:
We are given
µ = 36
σ = 12
n = 100
We have to find P(36 - 2 < x̄ < 36 + 2) = P(34< x̄ <38)
P(34< x̄ <38) = P(x̄<38) - P(x̄<34)
Find P(x̄<38)
Z = (x̄ - µ)/[σ/sqrt(n)]
Z = (38 - 36)/(12/sqrt(100))
Z = 1.666667
P(Z<1.666667) = P(x̄<38) = 0.95221
(by using z-table)
Now find P(x̄<34)
Z = (x̄ - µ)/[σ/sqrt(n)]
Z = (34 - 36)/(12/sqrt(100))
Z = -1.66667
P(Z<-1.66667) = P(x̄<34) = 0.04779
(by using z-table)
P(34< x̄ <38) = P(x̄<38) - P(x̄<34)
P(34< x̄ <38) = 0.95221 - 0.04779
P(34< x̄ <38) = 0.90442
Required probability = 0.90442
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