In: Statistics and Probability
The average electric cost for mid-size manufacturing companies operating in the western United States is $0.10 / KWHr, with a standard deviation of $0.03 / KWHr. A sample of 35 companies are surveyed. What is the likelihood that the sample mean is less than $0.09?
Solution :
Given that ,
mean =
= 0.10
standard deviation =
= 0.03
n = 35
=
= 0.10 and
=
/
n = 0.03 /
35 = 0.0051
P(
> 0.09) = 1 - P(
< 0.09)
= 1 - P((
-
) /
< (0.09 - 0.10) / )
= 1 - P(z < -1.96)
= 1 - 0.0250 Using standard normal table.
= 0.9750
The likelihood that the sample mean is less than $0.09 is 0.9750.