Internet Service Providers The amount that households pay service providers for access to the Internet varies quite a bit, but the mean monthly fee is $50 and the standard deviation is $20. The distribution is not Normal: many households pay a low rate as part of a bundle with phone or television service, but some pay much more for Internet only or for faster connections. A sample survey asks an SRS of 50 households with Internet access how much they pay. Let x be the mean amount paid. 1. Explain why you can't determine the probability that the amount a randomly selected household pays for access to the Internet exceeds $55. 2. What are the mean and standard deviation of the sampling distribution of x ? 3. What is the shape of the sampling distribution of x ? Justify your answer. 4. Find the probability that the average fee paid by the sample of households exceeds $55.

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Author:Amos Gilat
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Internet Service Providers
The amount that households pay service providers for access to the Internet varies
quite a bit, but the mean monthly fee is $50 and the standard deviation is $20. The
distribution is not Normal: many households pay a low rate as part of a bundle with
phone or television service, but some pay much more for Internet only or for faster
connections.
A sample survey asks an SRS of 50 households with Internet access how much they
pay. Let x be the mean amount paid.
1. Explain why you can't determine the probability that the amount a randomly
selected household pays for access to the Internet exceeds $55.
2. What are the mean and standard deviation of the sampling distribution of x ?
3. What is the shape of the sampling distribution of x ? Justify your answer.
4. Find the probability that the average fee paid by the sample of households
exceeds $55.
Transcribed Image Text:Internet Service Providers The amount that households pay service providers for access to the Internet varies quite a bit, but the mean monthly fee is $50 and the standard deviation is $20. The distribution is not Normal: many households pay a low rate as part of a bundle with phone or television service, but some pay much more for Internet only or for faster connections. A sample survey asks an SRS of 50 households with Internet access how much they pay. Let x be the mean amount paid. 1. Explain why you can't determine the probability that the amount a randomly selected household pays for access to the Internet exceeds $55. 2. What are the mean and standard deviation of the sampling distribution of x ? 3. What is the shape of the sampling distribution of x ? Justify your answer. 4. Find the probability that the average fee paid by the sample of households exceeds $55.
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