What is the present value of $6,000 to be received at the end of each of eight periods, assuming the first payment occurs at the
1 answer:
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Answer:
μ= 65 inches; σ= 0.625 inch
Step-by-step explanation:
The Central Limit Theorem estabilishes that, for a normally distributed(bell-shaped) random variable X, with mean and standard deviation
, the sampling distribution of the sample means with size n can be approximated to a normal distribution with mean
and standard deviation
.
For a skewed variable, the Central Limit Theorem can also be applied, as long as n is at least 30.
In this problem, we have that:
By the central limit theorem, the sample of 16 will have:
So the correct answer is:
μ= 65 inches; σ= 0.625 inch