Question

Problem 1:

The US Department of Energy conducts weekly surveys of approximately 900 gasoline stations to
determine the average price per gallon of regular gasoline in the U.S. On December 29, 2003, the average price was $1.478 per gallon.
a. Identify the population.
b. Identify the sample.
c. Identify the parameter.
d. What is the statistic?
e. If the 900 gasoline stations were randomly selected from the gasoline stations in Minnesota.
Is this a good sample? Explain.

Answer 1

a. The population is all gasoline stations in the U.S. b. The sample is the 900 gasoline stations surveyed by the US Department of Energy. c. The parameter is the average price per gallon of regular gasoline in the U.S. d. The statistic is the average price per gallon of regular gasoline based on the sample of 900 surveyed gasoline stations. e. It would not be a good sample if the 900 stations were randomly selected from Minnesota as it would not represent the entire U.S.

Step-by-step explanation:

a. The population in this case is all gasoline stations in the U.S.

b. The sample is the 900 gasoline stations that were surveyed by the US Department of Energy.

c. The parameter is the average price per gallon of regular gasoline in the U.S.

d. The statistic is the average price per gallon of regular gasoline based on the sample of the 900 surveyed gasoline stations.

e. If the 900 gasoline stations were randomly selected from the gasoline stations in Minnesota, it would not be a good sample as it would only represent the gasoline stations in Minnesota, not the entire U.S.