A report announced that the median sales price of new houses sold one year was $231,000, and the mean sales price was $272,800. Assume that the standard deviation of the prices is $100,000. Complete parts (a through (d) below. TIO oapny uiouDuuuIT WI Vo appIUATIaLoiy urIo. O B. The sampling distribution is skewed to the right, but less skewed to the right than the population. OC. The sampling distribution will depend on the specific sample and will not have a constant shape. O D. The sampling distribution will be approximately normal. (b) If you select samples of n = 100, describe the shape of the sampling distribution of X. Choose the correct answer below. O A. The sampling distribution will depend on the specific sample and will not have a constant shape. O B. The sampling distribution will be approximately normal. OC. The sampling distribution will be approximately uniform. O D. The sampling distribution is skewed to the right, but lessed skew to the right than the population.
Continuous Probability Distributions
Probability distributions are of two types, which are continuous probability distributions and discrete probability distributions. A continuous probability distribution contains an infinite number of values. For example, if time is infinite: you could count from 0 to a trillion seconds, billion seconds, so on indefinitely. A discrete probability distribution consists of only a countable set of possible values.
Normal Distribution
Suppose we had to design a bathroom weighing scale, how would we decide what should be the range of the weighing machine? Would we take the highest recorded human weight in history and use that as the upper limit for our weighing scale? This may not be a great idea as the sensitivity of the scale would get reduced if the range is too large. At the same time, if we keep the upper limit too low, it may not be usable for a large percentage of the population!
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