Question

The mean amount μ for all the invoices for your company last
month is not known. Based on your past experience, you are willing
to assume that the standard deviation of invoice amounts is $334.
You take a random sample of 106 invoices. Apply the Central Limit
Theorem ** and the 68-95-99.7 Rule** to
complete the following sentence: “The probability is about 0.95
that the sample mean is within _________ of the population mean
μ.”

Enter your answer to 2 decimal places of accuracy.

Answer #1

Solution :

Given that

standard deviation = = 334

n = 106

_{}
=
/
n = 334 /
106 = 32.44

P(
_{}
- 2_{}
<
< _{}
+ 2_{}
) = 95%

=
_{} ±
2_{}
= 95%

= _{} ±
2 * 32.44 = 95%

=
_{} ±
64.88 = 95%

“The probability is about 0.95 that the sample mean is within 64.88 of the population mean μ.”

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INNOVATION
Deep Change: How Operational Innovation Can Transform Your
Company
by
Michael Hammer
From the April 2004 Issue
Save
Share
8.95
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