An ethanol railroad tariff is a fee charged for shipments of ethanol on public railroads. An agricultural association publishes tariff rates for railroad-car shipments of ethanol. Assuming that the standard deviation of such tariff rates is $900, determine the probability that the mean tariff rate of 300 randomly selected railroad-car shipments of ethanol will be within $100 of the mean tariff rate of all railroad-car shipments of ethanol. Interpret your answer in terms of sampling error.

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Part 1

The probability is

enter your response here.

(Round to three decimal places as needed.)

Part 2

Interpret this probability in terms of the sampling error. Choose the correct answer below and fill in the answer box to complete your choice.

There is about a

enter your response here% chance that the sampling error made in estimating the

variance of the

mean

tariff rate of all railroad-car shipments of ethanol will be

at most

exactly

at least

$100.