Assignment:
Business Week surveyed MBA alumni 10 years after graduation (Business Week, September 22, 2003) One finding was that alumni spend an average of $115.50 per week eating out socially. You have been asked to conduct a follow-up study by taking a sample of 40 of these MBA alumni. Assume the populations standard deviation is $35.
a. Determine the value of the standard error associated with this sample.
b. What is the probability the sample mean will be within $10 of the population mean?
c. Suppose you find a sample mean of $100. What is the probability of finding a sample mean of $100 or less? Would you consider this sample to be an unusually low spending group of alumni? Why or why not?
Provide complete and step by step solution for the question and show calculations and use formulas.