In: Statistics and Probability
5 The city of Decima, Texas has 8,000 registered voters whose average annual income is $36,000 with a population standard deviation of $3600. If you were to take a sample of 100 registered voters, what is the probability the sample mean ,would be within plus or minus $500 of the population mean?
Solution :
Given that ,
mean = = 36000
standard deviation = = 3600
n = 100
= = 36000
= / n = 3600 / 100 = 360
P(35500 < < 36500)
= P[(35500 - 36000) / 360 < ( - ) / < (36500 - 36000) / 360 )]
= P(-1.39 < Z < 1.39 )
= P(Z < 1.39) - P(Z < -1.39 )
Using z table,
= 0.9177 - 0.0823
= 0.8354