Homework SourseThe distribution of the amount of money in savings accounts
The distribution of the amount of money in savings accounts for University of Alabama students has an average of 950 dollars and a standard deviation of 1,000 dollars. Suppose that we take a random sample of 40 University of Alabama students and ask them how much they have in their savings account. The sampling distribution of the sample mean amount of money in a savings account is
| Approximately Normal with an unknown mean and standard error |
Solution
By central limit theorem, it will be approximately normal, with the same mean (950) but with standard deviation s/sqrt(n).
Thus, the standard error is
SE = 1000/sqrt(40) = 158.113883
Thus, it is
OPTION C: approximately Normal, with a mean of 950 and a standard error of 158.11. [ANSWER, C]
