Question

The Wall Street Journal reported that 33% of taxpayers with adjusted gross incomes between $30,000 and $60,000 itemized deductions on their federal income tax return. The mean amount of deductions for this population of taxpayers was $15,071. Assume that the standard deviation is 82,790. Use 2-table. 

a. What is the probability that a sample of taxpayers from this income group who have itemized deductions will show a sample mean within $200 of the population mean for each of the following sample sizes: 30, 50, 100, and 4007 Round your answers to four decimals. 

b. What is the advantage of a larger sample size when attempting to estimate the population mean? 

A larger sample - Select your answer the probability that the sample mean will be within a specified distance of the population mean. In the automobile insurance example, the probability of being within 200 of a ranges from for a sample of size 30 to for a sample of size 400.

Answer 1