A random variable s measures the daily balances in customers savings accounts. It is normally distributed, with
Question:
A random variable s measures the daily balances in customers’ savings accounts. It is normally distributed, with a mean of μs – $108 and a standard deviation of $15.
(a) If a random sample of size n = 4 is drawn, what is the probability that the s4 value exceeds $116?
(b) If a random sample of size n = 16 is drawn, what is the probability that the sl6 value exceeds $116?
(c) What happened to the standard deviation of S̅ when the sample size increased from n = 4 to n = 16?
(d) What happened to the probability of observing S̅ ≥ $116 as the sample size increased from n = 4 to n = 16?
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Daily Balances and Sample Means Given Mean daily balance 108 Standard deviation 15 a Probability of ...View the full answer
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Related Book For 
Statistics For Business And Financial Economics
ISBN: 9781461458975
3rd Edition
Authors: Cheng Few Lee , John C Lee , Alice C Lee
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