Session:7 The Central Limit Theorem

Solutions

Introductory Business Statistics | Leadership Development – Micro-Learning Session

Rice University 2020 | Michael Laverty, Colorado State University Global Chris Littel, North Carolina State University| https://openstax.org/details/books/introductory-business-statistics

1

  1. U(24, 26), 25, 0.5774
  2. N(25, 0.0577)
  3. 0.0416
3. 0.0003
5. 25.07

7

  1. N(2,500, 5.7735)
  2. 0
9. 2,507.40

11

  1. 10
  2. 110
    110
     

13

N (10, 108)

(10, 108) 

15. 0.7799
17. 1.69
19. 0.0072
21. 391.54
23. 405.51
25. Mean = 25, standard deviation = 2/7
26. Mean = 48, standard deviation = 5/6
27. Mean = 90, standard deviation = 3/4
28. Mean = 120, standard deviation = 0.38
29. Mean = 17, standard deviation = 0.17
30. Expected value = 17, standard deviation = 0.05
31. Expected value = 38, standard deviation = 0.43
32. Expected value = 14, standard deviation = 0.65
33. 0.23
34. 0.060
35. 1/5
36. 0.063
37. 1/3
38. 0.056
39. 1/10
40. 0.042
41. 0.999
42. 0.901
43. 0.301
44. 0.832
45. 0.483
46. 0.500
47. 0.502
48. 0.519

49

  1. Χ = amount of change students carry
  2. Χ ~ E(0.88, 0.88)
  3. X
     

    = average amount of change carried by a sample of 25 students.

  4. X
     

    N(0.88, 0.176)

  5. 0.0819
  6. 0.1882
  7. The distributions are different. Part a is exponential and part b is normal.

51

  1. length of time for an individual to complete IRS form 1040, in hours.
  2. mean length of time for a sample of 36 taxpayers to complete IRS form 1040, in hours.
  3. N(10.53, 13)
    (10.53, 13)
     
  4. Yes. I would be surprised, because the probability is almost 0.
  5. No. I would not be totally surprised because the probability is 0.2312

53

  1. the length of a song, in minutes, in the collection
  2. U(2, 3.5)
  3. the average length, in minutes, of the songs from a sample of five albums from the collection
  4. N(2.75, 0.066)
  5. 2.74 minutes
  6. 0.03 minutes

55

  1. True. The mean of a sampling distribution of the means is approximately the mean of the data distribution.
  2. True. According to the Central Limit Theorem, the larger the sample, the closer the sampling distribution of the means becomes normal.
  3. The standard deviation of the sampling distribution of the means will decrease making it approximately the same as the standard deviation of X as the sample size increases.

57

  1. X = the yearly income of someone in a third world country
  2. the average salary from samples of 1,000 residents of a third world country
  3. X
     

    ∼ N(2000, 80001000) (2000, 80001000) 

  4. Very wide differences in data values can have averages smaller than standard deviations.
  5. The distribution of the sample mean will have higher probabilities closer to the population mean.
    P(2000 < X  

    < 2100) = 0.1537
    P(2100 < X  

    < 2200) = 0.1317

59. b
60. 64

61

  1. Yes
  2. Yes
  3. Yes
  4. 0.6
62. 400
63. 2.5
64. 25
65. 0.0087
66. 0.0064, 0.0064

67

  1. It has no effect.
  2. It is divided by 2–√
    2
     

    .

  3. It is divided by 2.

68

  1. 4/5
  2. 0.04
  3. 0.0016

69

  1. Yes
  2. No
70. 0.955
71. 0.927
72. 0.648
73. 0.101
74. 0.273

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