Discuss the below:
Q1. Assume the population standard deviation is a=25. (The a is actually the funny looking 0 with the line that goes from the top right up at an angle) Compute the standard error of the mean O (funny o with line) line over x, for sample sizes of 50, 100, 150, and 200. What can you say about the size of the standard error of the mean as the sample size is increased?
Q2. The College Board American College Testing Program reported a population mean Sat score of (funny looking) u = 1020. Assume that the population standard deviation is funny looking o with line top right = 100,
a. What is the probability that a random sample of 75 students will provide a sample mean score within 20 of the population mean?
b. What is the probability a random sample of 75 students will provide a sample mean Sat score within 20 of the population mean?
Q3. The average annual cost of automobile insurance is $687. Use this value as the population mean and assume that the population standard deviation is funny looking o with line on top =$230. Consider a sample of 45 automobile insurance policies.
a. Show the sampling distribution of line over x where line over x is the sample mean annual cost of automobile insurance.
b. What is the probability that the sample mean is within $100 of the population mean?
c. What is the probability that the sample mean is within $25 of the population mean?
d. What would you recommend if an insurance agency wanted the sample mean to estimate the population mean within + or - $25?