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(Solved): The Wall Street Journal reported that 33% of taxpayers with adjusted gross incomes between $30,000 a ...
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 $17,185. Assume that the standard
deviation is \sigma =$2,929. Use z-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
$237 of the population mean for each of the following sample sizes: 30,50,100, and 400 ? Round your answers to four decimals.
n=30
n=50
n=100
n=400
b. What is the advantage of a larger sample size when attempting to estimate the population mean? Round your answers to four decimals.
A larger sample
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 +-237 of \mu ranges from
for a sample of size 30 to
for a sample of size 400 .