T7.12. The amount that households pay service providers for access to the Internet varies quite a bit, but the mean

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T7.12. The amount that households pay service providers
for access to the Internet varies quite a bit, but the mean
Transcribed Image Text:T7.12. The amount that households pay service providers for access to the Internet varies quite a bit, but the mean
monthly fee is $28 and the standard deviation is $10. The
distribution is not Normal: many households pay about $10
for limited dial-up access or about $30 for unlimited dial-up
access, but some pay much more for faster connections. A
sample survey asks an SRS of 500 households with Inter-
net access how much they pay. Let x be the mean amount
paid.
(a) Explain why you can't determine the probability that
the amount a randomly selected household
to the Internet exceeds $29.
рays
for access
(b) What are the mean and standard deviation of the
sampling distribution of x?
(c) What is the shape of the sampling distribution of x?
Justify your answer.
(d) Find the probability that the average fee paid by the
sample of households exceeds $29. Show your work.
Transcribed Image Text:monthly fee is $28 and the standard deviation is $10. The distribution is not Normal: many households pay about $10 for limited dial-up access or about $30 for unlimited dial-up access, but some pay much more for faster connections. A sample survey asks an SRS of 500 households with Inter- net access how much they pay. Let x be the mean amount paid. (a) Explain why you can't determine the probability that the amount a randomly selected household to the Internet exceeds $29. рays for access (b) What are the mean and standard deviation of the sampling distribution of x? (c) What is the shape of the sampling distribution of x? Justify your answer. (d) Find the probability that the average fee paid by the sample of households exceeds $29. Show your work.
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