The Economics Policy Institute periodically issues reports on wages of entry-level workers. The Institute reported that entry-level wages for male college graduates were $43.36 per hour, and for female college graduates were $37.60 per hour. Assume the standard deviation for male graduates is $2.30 and for female graduates is $2.05. a. What is the probability that a sample of 50 male graduates will provide a sample mean within $0.50 of the population mean, $43.36
Question 3 – Sampling Distribution (10 marks)
The Economics Policy Institute periodically issues reports on wages of entry-level workers.
The Institute reported that entry-level wages for male college graduates were $43.36 per
hour, and for female college graduates were $37.60 per hour. Assume the standard deviation
for male graduates is $2.30 and for female graduates is $2.05.
a. What is the
within $0.50 of the population mean, $43.36? (3 marks)
b. What is the probability that a sample of 50 female graduates will provide a sample mean
within $0.50 of the population mean, $37.60? (3 marks)
c. In which of the preceding two cases, part (a) or part (b), do we have a higher probability
of obtaining a sample estimate within $0.50 of the population mean? Why? (2 marks)
d. What is the probability that a sample of 120 female graduates will provide a sample mean
more than $0.30 below the population mean? (2 marks)
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