A bank Certificate of Deposit is a: a Cash deposit in a savings account that earns interest b Certificate for deposits that are
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Answer:
The probability that the mean from that sample will be between 183 and 186 is 0.0994 = 9.94%.
Step-by-step explanation:
To solve this question, we need to understand the normal probability distribution and the central limit theorem.
Normal Probability Distribution:
Problems of normal distributions can be solved using the z-score formula.
In a set with mean and standard deviation
, the z-score of a measure X is given by:
The Z-score measures how many standard deviations the measure is from the mean. After finding the Z-score, we look at the z-score table and find the p-value associated with this z-score. This p-value is the probability that the value of the measure is smaller than X, that is, the percentile of X. Subtracting 1 by the p-value, we get the probability that the value of the measure is greater than X.
Central Limit Theorem
The Central Limit Theorem estabilishes that, for a normally distributed 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.
A population has a mean of 180 and a standard deviation of 24.
This means that
A sample of 100 observations will be taken.
This means that
The probability that the mean from that sample will be between 183 and 186 is:
This is the pvalue of Z when X = 186 subtracted by the pvalue of Z when X = 183. So
X = 186
By the Central Limit Theorem
has a pvalue of 0.9938
X = 183
has a pvalue of 0.8944
0.9938 - 0.8944 = 0.0994
The probability that the mean from that sample will be between 183 and 186 is 0.0994 = 9.94%.
One may note that any number can be written as over 1, or 2 is 2/1 or 1,000 is 1,000/1 and so on
thus
thus