Question

The following data are from a simple random sample (The population is infinite): Data were collected on the amount spent by 130 customers for lunch at a major Houston restaurant. Based upon past studies the population variance is known with 256. Sample Mean: $21.5 Find the standard error of the mean. If needed round your intermediate calculations to no more than 2 decimal places. Round your final answer to 2 decimal places.

Answer 1

1.40

Explanation:

Given that

the number of customers are 130

The variance is 256

And, the sample mean is $21.50

We need to find out the standard error

So , the standard deviation is

= sqrt(variance)

= sqrt(256)

= 16

As we know that

standard error of mean = standard deviation ÷ sqrt(n)

= 16 ÷ sqrt(130)

= 1.40