Question

A random sample of 10 houses in a particular area, each of which is heated with natural gas, is selected and the amount of gas (therms) used during the month of January is determined for each house. The resulting observations are 139, 122, 141, 103, 138, 118, 99, 125, 89, 109. Let μ denote the average gas usage during January by all houses in this area. Compute a point estimate of μ.

Answer 1

118.3 therms

Explanation:

Number of houses sampled (n)= 10

Sample values of the amount of gas used = 139, 122, 141, 103, 138, 118, 99, 125, 89, 109.

The point estimate for the true population mean (μ) is given by the average of the sample values:

`\mu =(139+ 122+ 141+ 103+ 138+ 118+ 99+ 125+ 89+ 109)/(10) \\\mu = 118.3`

The point estimate of μ is 118.3 therms.