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Please use the following for the next 6 questions. Suppose that the average weekly earnings for employees in general automotive repair shops is $450, and that the population standard deviation for the earnings for such employees is $50. A sample of 100 such employees is selected at random.

1) What is the probability distribution of the average weekly earnings for employees in general automotive repair shops?

2) Find the probability that the average weekly earnings is less than $445.

3) Find the probability that the average weekly earnings is exactly equal to $445.

4) Find the probability that the average weekly earnings is between $445 and $455.

5) In answering the previous 3 questions, did you have to make any assumptions about the population distribution?

6) Now assume that the weekly earnings for employees in all general automotive repair shops is normally distributed, obtain the probability that a given employee will earn more than $480 in a given week.

User Vzwick
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1 Answer

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1) The probability distribution of the average weekly earnings for employees in general automotive repair shops is the sampling distribution of the sample mean. According to the Central Limit Theorem, if the sample size is large enough, the sampling distribution of the sample mean is approximately normal, with a mean equal to the population mean and a standard deviation equal to the population standard deviation divided by the square root of the sample size.

2) To find the probability that the average weekly earnings is less than $445, we can standardize the sample mean and use a z-table. The z-score for $445 is calculated as follows: z = (445 - 450) / (50 / sqrt(100)) = -1. Using a z-table, we find that the probability that the average weekly earnings is less than $445 is approximately 0.1587.

3) Since we are dealing with a continuous distribution, the probability that the average weekly earnings is exactly equal to any specific value is zero.

4) To find the probability that the average weekly earnings is between $445 and $455, we can subtract the probability that it is less than $445 from the probability that it is less than $455. The z-score for $455 is calculated as follows: z = (455 - 450) / (50 / sqrt(100)) = 1. Using a z-table, we find that the probability that the average weekly earnings is less than $455 is approximately 0.8413. Therefore, the probability that it is between $445 and $455 is approximately 0.8413 - 0.1587 = 0.6826.

5) In answering questions 2-4, we made an assumption about the population distribution based on the Central Limit Theorem. We assumed that since our sample size was large enough (n=100), our sampling distribution would be approximately normal.

6) If we assume that weekly earnings for employees in all general automotive repair shops are normally distributed with a mean of $450 and a standard deviation of $50, then we can calculate the z-score for an employee earning more than $480 in a given week as follows: z = (480 - 450) / 50 = 0.6. Using a z-table, we find that the probability that an employee will earn more than $480 in a given week is approximately 1 - 0.7257 = 0.2743.

User Geeknik
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