Question

The ransin sports company has noted that the size of individual customer orders is normally distributed with a mean of $112 and a variance of $9. if a soccer team of 16 players were to make the next batch of orders, what would be the standard error of the mean?

Answer 1

Standard error of the mean is computed by:

Standard error = SD/ sqrt N

Where:

N is the sample size

SD is the standard deviation

 

To get the standard deviation, you need to get the sqrt of the variance = sqrt 9 = 3

So plugging in our data:

 

Standard error = 3 / sqrt (16)

= 0.75