In given Exercise, what is the probability of getting a sample mean between $97,500 and $102,500?
Exercise
Someone claims that within a certain neighborhood, the average cost of a house is µ = $100,000 with a standard deviation of σ = $10,000. Suppose that based on n = 16 homes, you find that the average cost of a house is X‾= $95,000.
Assuming normality, what is the probability of getting a sample mean this low or lower if the claims about the mean and standard deviation are true?