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An IRS research found that the average time for taxpayers to prepare, copy, and electronically file a 1040 tax form is 330 minutes. The standard deviation for this time distribution, which is normal, is 80 minutes. A group of 40 taxpayers are chosen at random by a consumer protection organisation. What is the likelihood the sample mean is between 320 and 350 minutes?
Solution
VerifiedThe population mean is a parameter that indicates the average of the entire population. Its estimator is the sample proportion and the estimate, or its particular value, is . Since is a random variable whose value depends on the chosen random sample, then we need to discuss its sampling distribution.
The given population has a normal distribution. As such, the sampling distribution of the sample mean, regardless of the size, will also be normal. Therefore, we can convert the normal distribution to its standard normal distribution using the formula below
where is the estimate, is the population mean, is the population standard deviation, and is the sample size.
We can then determine the likelihood of the estimate by looking at the table for the areas under the curve of the z-values.
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