Answer question 31 again, assuming that the sample is taken with replacement.

Question 31

The mean interest rate of 500 money market mutual funds is 7.98 % with a
standard deviation of 1.01 %. Suppose you draw a sample of 25 mutual funds.
(a) What is the mean of the sample mean rate?
(b) What is the variance of the sample mean?
(c) What is the probability that this sample will have a mean rate above 8.2 %?