Discussion:
Q1 Suppose you are sampling from a population with mean µ = 1,065 and standard deviation σ = 500. The sample size is n = 100. What are the expected value and the variance of the sample mean X? Show and explain your work (study guide # 5-41).
Q2 Suppose a new estimator for the population mean is discovered. The new estimator is unbiased and has a variance equal to σ^2 / n^2. Discuss the merits of the new estimator compared with the sample mean. Show and work and explain your answer (study guide # 5-65).
Q3 Thomas Stanley, who surveyed 200 millionaires in the United States for his book The Millionaire Mind, found that those in that bracket had an average net worth of $9.2 million. The sample variance was 1.3 million $^2. Assuming that the surveyed subjects are a random sample of U.S. millionaires, give a 99% confidence interval for the average net worth of U.S. millionaires.
Q4 Use the following random sample of suitcase prices to construct a 90% confidence interval for the average suitcase price. Show and explain your answer
$285, $110, $495, $119, $125, $250, $320