Question

At this point the entire POPULATION of solar land leased is as follows:

Lease per acre for Solar Farms

650

620

707

595

740

600

1.  What is the average price paid per acre for the solar land leased?

2.  If you select three tracts to compute the average, what is the standard deviation of this population’s sampling distribution?

Answer 1

1. The average price paid per acre for the solar land leased = (650 + 620 + 707 + 595 + 740 + 600)/6 = 652

2. If we select three tracts out of the six to compute the average, there are 6C3 = 20 samples possible. Let's calculate the sample mean of each sample and then we will calculate the standard deviation of the population's sampling distribution. Each of the 20 samples are given below, the elements selected in each and the sample mean. The standard deviation is calculated using the sample means.

X1	X2	X3	Sample Mean or sampling distribution (X)
650	620	707	659.00
650	620	595	621.67
650	620	740	670.00
650	620	600	623.33
650	707	595	650.67
650	707	740	699.00
650	707	600	652.33
650	595	740	661.67
650	595	600	615.00
650	740	600	663.33
620	707	595	640.67
620	707	740	689.00
620	707	600	642.33
620	595	740	651.67
620	595	600	605.00
620	740	600	653.33
707	595	740	680.67
707	595	600	634.00
707	740	600	682.33
595	740	600	645.00
		Total of X	13040.00
		Mean of X	652.00
		Standard Deviation of X	24.96

Standard deviation of the sampling distribution, X = 24.96