In: Statistics and Probability
The mean per capita consumption of milk per year is 131 liters with a variance of 841.
If a sample of 132 people is randomly selected, what is the probability that the sample mean would be less than 133.5 liters? Round your answer to four decimal places.
Solution:
Given: The mean per capita consumption of milk per year is 131
liters with a variance of 841.
That is: and
then standard deviation =
Sample size = n = 132
Since sample size n = 132 > 30, we can assume large sample and hence we apply Central Limit theorem which states that for a large sample size , sampling distribution of sample means is approximately Normal with mean of sample means is and standard deviation of sample means is:
We have to find the probability that the sample mean would be less than 133.5 liters
That is:
Thus find z score:
Thus we get:
Look in z table for z =0.9 and 0.09 and find area.
P( Z< 0.99 ) = 0.8389
Thus
Thus the probability that the sample mean would be less than 133.5 liters is 0.8389