3. Information from the American Institute of Insurance indicates the mean amount of life insurance per household in the United States is $126,000. This distribution follows the normal distribution with a standard deviation of $40,000. (a) If we select a random sample of 64 households, what is the standard error of the mean? (b) What is the expected shape of the distribution of the sample mean? Explain why. (c) What is the likelihood of selecting a sample with a mean of at least $130,000?

3. Information from the American Institute of Insurance indicates the mean amount of life insurance per household in the United States is $126,000. This distribution follows the normal distribution with a standard deviation of $40,000. (a) If we select a random sample of 64 households, what is the standard error of the mean? (b) What is the expected shape of the distribution of the sample mean? Explain why. (c) What is the likelihood of selecting a sample with a mean of at least $130,000?

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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