Author Question: If a computer statistical package were to simulate 500 random observations from a normal ... (Read 117 times)

berenicecastro · **on:** Jun 24, 2018

If a computer statistical package were to simulate 500 random observations from a normal distribution with mean = 100 and standard deviation = 50, what percentage of these observations would you expect to have a value of 200 or more? Do you think the actual number in the 200 range would equal the expected number in this range? If so, why? If not, why not?

Question 2

A federal auditor for nationally chartered banks from a random sample of 100 accounts found that the average demand deposit balance at the First National Bank of small town was 549.82 . If the auditor needed a point estimate for the population mean for all accounts at this bank, what would she use?
a. The average of 54.98 for this sample.
b. The average of 549.82 for this sample.
c. There is no acceptable value available.
d. She would survey the total of all accounts and determine the mean.
e. Not enough information is given to answer this question.

yeungji · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

2.28; No. We would expect 11.4 of the 500 observations (2.28) to have a value of 200 or more. The actual number would not be equal to the expected number. However, the more observations we select, the closer we will tend to come to what we expect.

Answer to Question 2

B