The number of diners at a restaurant each day is recorded an
The number of diners at a restaurant each day is recorded and a daily average is calculated every month (assume 30 days in a month). The number of diners each day has a mean of 142 and a standard deviation of 58, but does not necessarily follow a normal distribution. The probability that a daily average over a given month is greater than x is 2.5%. Calculate x. You may find standard normal table useful. Give your answer to 3 decimal places.
Solution
By central limit theorem, the sampling distribution of the means will be approximately normally distirbuted.
First, we get the z score from the given left tailed area. As
Left tailed area = 0.975
Then, using table or technology,
z = 1.959963985
As x = u + z * s / sqrt(n)
where
u = mean = 142
z = the critical z score = 1.959963985
s = standard deviation = 58
n = sample size = 30
Then
x = critical value = 162.7546521 [ANSWER]
