Question

The mean annual cost of automobile insurance is $900. Assume the population standard deviation is $200. Suppose we have a random sample of size 50. What is the standard error (or standard deviation) of xbar?

Answer 1

The standard error (or standard deviation) of xbar can be calculated using the formula: Standard Error = Standard Deviation / Square Root of Sample Size. Given that the population standard deviation is $200 and the sample size is 50, the standard error of xbar is $28.28.

Step-by-step explanation:

The standard error (or standard deviation) of xbar can be calculated using the formula:

Standard Error = Standard Deviation / Square Root of Sample Size

Given that the population standard deviation is $200 and the sample size is 50, we can substitute these values into the formula:

Standard Error = $200 / sqrt(50) = $28.28