Question

The Progressive Conservatives claim the average of 750 thousands per year (as the expected value for the earnings among Ontario super-rich) is an exaggeration, and have bet the NDP leader that the average annual earnings (per person) obtained from a sample of 1200 super-rich will be less than 748 thousands per year.

4. (a) (2 points) Will the NDP win this bet (yes/no, and why)?

(b) (3 points) What is the probability that the NDP will win the bet?

(c) (3 points) Would your answer to the previous question change if the sample size were doubled? How so (you should recalculate if you think it changes).

Answer 1