In: Statistics and Probability
Suppose that x has a distribution with μ = 8.5 and σ = 4. If a random sample of size n = 64 is chosen, find p(Xbar >10).
Given: μ = 8.5 and σ = 4 and Sample size (n) = 64 (large)
Standardizing
: Assuming that the underlying distribution is normal (n=
64>30), (Central limit theorem:The Central Limit Theorem states
that the sampling distribution of the sample means approaches a
normal distribution as the sample size gets larger,
specifically for sample sizes over 30),
can be standardized into Z score as follows:
Substituting the given values,
The required probability can be obtained from Standard Normal Tables, looking for the area corresponding to Row 3.0 and column 0.00. Since the table provides the less than probabilities:
P(Z>3) = 1 - 0.99865
= 0.00135