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An economist uses the price of a gallon of milk as a measure of inflation (a general rise in the price level of an economy
An economist uses the price of a gallon of milk as a measure of inflation (a general rise in the price level of an economy over a period of time). She finds that the average price is $3.27 per gallon and the population standard deviation is $0.66. You decide to sample 40 convenience stores, collect their prices for a gallon of milk and compute the mean price for the sample. What is the likelihood the sample mean is greater than $3.50? Based on this probability, what can you say about inflation.
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