Question

Household incomes are right-skewed, because most households earn under $150,000 per year, but a minority earn much, much more.•Suppose you wanted to determine what the average household income is in central Illinois. In order to do this, you take a simple random sample of 100 households. According to the Central Limit Theorem, the sample mean follows which of the following distributions?

Normal

Approximately normal

Uniform

Unknown

If household incomes are believed(from prior published studies)to have a standard deviation of $20,000, what is the standard deviation of your estimate for the mean household income?

Answer 1

solution:- a ima no B natly greater) ( By Approximo mali CLT if sample size is thon or equal to 30 b ) o= 20,000 na loo Lorem 20000 & 100 EF = 2000 rodi