The 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 4 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

Solution

normal distribution with mean = 950 and standard deviation = 1000/sqrt(4) = 1000/2 = 500