In: Statistics and Probability
The monthly expenditures on food by single adults living in one neighborhood of Los Angeles are normally distributed with a mean of $410 and a standard deviation of $75. Determine the percentage of samples of size 9 that have mean expenditures within $20 of the population mean expenditure of $410.
Solution :
Given that,
mean = 
 = 410
standard deviation = 
 = 75
n = 9

=  
= 410

= 
 / 
n = 75 / 
9 = 25
P(390 < 
 < 430)  
= P[(390 - 410) / 25< (
- 
)
/ 
< (430 - 410) / 25 )]
= P( - 0.8< Z < 0.8 )
= P(Z < 0.8 ) - P(Z < - 0.8)
Using z table,
= 0.7881 - 0.2119
= 0.5762