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64 . μ = n p = ( 500 ) ( 0.20 ) = 100
σ = n p q = 500 ( 0.20 ) ( 0.80 ) = 8.94

65 . Fifty percent, because in a normal distribution, half the values lie above the mean.

66 . The results of our sample were two standard deviations below the mean, suggesting it is unlikely that 20 percent of the lotto tickets are winners, as claimed by the distributor, and that the true percent of winners is lower. Applying the Empirical Rule, If that claim were true, we would expect to see a result this far below the mean only about 2.5 percent of the time.

7.1: the central limit theorem for sample means (averages)

67 . The central limit theorem states that if samples of sufficient size drawn from a population, the distribution of sample means will be normal, even if the distribution of the population is not normal.

68 . The sample size of 30 is sufficiently large in this example to apply the central limit theorem. This theorem ] states that for samples of sufficient size drawn from a population, the sampling distribution of the sample mean will approach normality, regardless of the distribution of the population from which the samples were drawn.

69 . You would not expect each sample to have a mean of 50, because of sampling variability. However, you would expect the sampling distribution of the sample means to cluster around 50, with an approximately normal distribution, so that values close to 50 are more common than values further removed from 50.

70 . X ¯ N ( 25 , 0.2 ) because X ¯ N ( μ x , σ x n )

71 . The standard deviation of the sampling distribution of the sample means can be calculated using the formula ( σ x n ) , which in this case is ( 16 50 ) . The correct value for the standard deviation of the sampling distribution of the sample means is therefore 2.26.

72 . The standard error of the mean is another name for the standard deviation of the sampling distribution of the sample mean. Given samples of size n drawn from a population with standard deviation σ x , the standard error of the mean is ( σ x n ) .

73 . X ~ N (75, 0.45)

74 . Your friend forgot to divide the standard deviation by the square root of n .

75 . z =   x ¯   μ x σ x =   76 75 4.5 = 2.2

76 . z = x ¯   μ x σ x =   74.7 75 4.5 = −0.67

77 . 75 + (1.5)(0.45) = 75.675

78 . The standard error of the mean will be larger, because you will be dividing by a smaller number. The standard error of the mean for samples of size n = 50 is:
( σ x n ) =   4.5 50 = 0.64

79 . You would expect this range to include values up to one standard deviation above or below the mean of the sample means. In this case:
70 + 9 60 = 71.16 and 70 9 60 = 68.84 so you would expect 68 percent of the sample means to be between 68.84 and 71.16.

80 . 70 + 9 100 = 70.9 and 70 9 100 = 69.1 so you would expect 68 percent of the sample means to be between 69.1 and 70.9. Note that this is a narrower interval due to the increased sample size.

7.2: the central limit theorem for sums

81 . For a random variable X , the random variable ΣX will tend to become normally distributed as the size n of the samples used to compute the sum increases.

82 . Both rules state that the distribution of a quantity (the mean or the sum) calculated on samples drawn from a population will tend to have a normal distribution, as the sample size increases, regardless of the distribution of population from which the samples are drawn.

Questions & Answers

it is the relatively stable flow of income
Chidubem Reply
what is circular flow of income
Divine Reply
branches of macroeconomics
SHEDRACK Reply
what is Flexible exchang rate?
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is gdp a reliable measurement of wealth
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introduction to econometrics
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Tom
Why is unemployment rate never zero at full employment?
Priyanka Reply
bcoz of existence of frictional unemployment in our economy.
Umashankar
what is flexible exchang rate?
poudel
due to existence of the pple with disabilities
Abdulraufu
the demand of a good rises, causing the demand for another good to fall
Rushawn Reply
is it possible to leave every good at the same level
Joseph
I don't think so. because check it, if the demand for chicken increases, people will no longer consume fish like they used to causing a fall in the demand for fish
Anuolu
is not really possible to let the value of a goods to be same at the same time.....
Salome
Suppose the inflation rate is 6%, does it mean that all the goods you purchase will cost 6% more than previous year? Provide with reasoning.
Geetha Reply
Not necessarily. To measure the inflation rate economists normally use an averaged price index of a basket of certain goods. So if you purchase goods included in the basket, you will notice that you pay 6% more, otherwise not necessarily.
Waeth
discus major problems of macroeconomics
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what is the problem of macroeconomics
Yoal
Economic growth Stable prices and low unemployment
Ephraim
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what is inflation
Getu
increase in general price levels
WEETO
Good day How do I calculate this question: C= 100+5yd G= 2000 T= 2000 I(planned)=200. Suppose the actual output is 3000. What is the level of planned expenditures at this level of output?
Chisomo Reply
how to calculate actual output?
Chisomo
how to calculate the equilibrium income
Beshir
Criteria for determining money supply
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Muhammad
Aggregate demand
Mohammed
C=k100 +9y and i=k50.calculate the equilibrium level of output
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money as unit of account means what?
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A unit of account is something that can be used to value goods and services and make calculations
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Muhammad
I want to know how can we define macroeconomics in one line
Muhammad
it must be .9 or 0.9 no Mpc is greater than 1 Y=100+.9Y+50 Y-.9Y=150 0.1Y/0.1=150/0.1 Y=1500
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hi can someone help me on this question If a negative shocks shifts the IS curve to the left, what type of policy do you suggest so as to stabilize the level of output? discuss your answer using appropriate graph.
Galge Reply
if interest rate is increased this will will reduce the level of income shifting the curve to the left ◀️
Kalombe
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Source:  OpenStax, Introductory statistics. OpenStax CNX. May 06, 2016 Download for free at http://legacy.cnx.org/content/col11562/1.18
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