In: Statistics and Probability
The amount people pay for electric service varies quite a bit, but the mean monthly fee is $168 and the standard deviation is $34. The distribution is not Normal. Many people pay about $90 in rural areas of the country and about $150 in urban areas of the country, but some pay much more. A sample survey is designed to ask a simple random sample of 1,200 people how much they pay for electric services. Let x̄ be the mean amount paid.
Part A: What are the mean and standard deviation of the sample distribution of x̄? Show your work and justify your reasoning. (4 points)
Part B: What is the shape of the sampling distribution of x̄? Justify your answer. (2 points)
Part C: What is the probability that the average electric service paid by the sample of electric service customers will exceed $170? Show your work. (4 points) (10 points)