Assume that we want to construct a confidence interval. Do one of the following, as appropriate: (a) find the critical value t
Subscript alpha divided by 2, (b) find the critical value z Subscript alpha divided by 2, or (c) state that neither the normal distribution nor the t distribution applies.
The confidence level is 95%, sigma is not known, and the histogram of 60 player salaries (in thousands of dollars) of football players on a team is as shown.
The confidence level is 95%, sigma is not known, and the histogram of 60 player salaries (in thousands of dollars) of football players on a team is as shown.
1 answer:
Answer:
Neither the normal distribution nor the t distribution applies.
Step-by-step explanation:
Hello!
The histogram attached shows the salary (in dollars) of 63 football players.
As you can see most of the values of this distribution are around 0 and the distribution is extremely asymmetrical (right skewed).
To apply a t-test to study the population average the population has to have a normal distribution.
The same goes for the standard normal distribution, but in this case, considering that the sample is large enough (n≥30) you can apply the Central Limit Theorem and approximate the distribution of the sample mean to normal X[bar]≈N(μ;δ²/n), but since the population variance is unknown, this is also not applicable.
The correct choice is the last one, since the conditions to apply the t test and the standard normal are not met.
I hope this helps!
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