Question
Wegman's receipts show that customer purchase amounts follow a right-skewed distribution with sigma=$78. We would like to estimate the average purchase amount for the entire
Wegman's receipts show that customer purchase amounts follow a right-skewed distribution with sigma=$78. We would like to estimate the average purchase amount for the entire Wegman's which we don't know. To do so, we gather a random sample of 100 receipts and record the purchase amounts. Our objective is to use the average obtained from this sample of 100 to make inference about the value of the average purchase amount for the entire Wegman's. Of course, depending on which sample we pick, the sample mean would take a slightly different value, and so we can't claim that this sample mean is the true (population) mean! What is the probability that in a random sample of 100 the mean would be no more than $10 away from the true average purchase amount for Wegman's?
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