Consider Sampling from a Normal Population with a Population Mean $\bar{x}$

question 16

Essay

Consider sampling from a normal population with a population mean µ and standarddeviation ?. As the sample size, n, increases, some characteristics of the sampling distribution of the sample mean, $\bar{x}$ , may change. Which of the following characteristics will change as n increases, and what is the nature of the change?
a) The mean of the sampling distribution of $\bar{x}$
b) The standard deviation of the sampling distribution of $\bar{x}$
c) The shape of the sampling distribution of $\bar{x}$

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Definitions:

Marginal Revenue Product

The extra revenue generated from employing one additional unit of a resource.

Marginal Cost

The additional cost incurred by producing one more unit of a product, which can vary depending on the level of production.

Pareto Efficient

A distribution of resources where improving the situation of one person cannot be achieved without detriment to another.

Net Benefit

The total positive effects or outcomes of a decision or action minus its total negative effects or costs.