Three Randomly Selected Households Are Surveyed as a Pilot Project

question 9

Essay

Three randomly selected households are surveyed as a pilot project for a larger survey to be conducted later. The numbers of people in the households are 5, 7, and 9. Consider the
values of 5, 7, and 9 to be a population. Assume that samples of size n = 2 are randomly
selected with replacement from the population of 5, 7, and 9. The nine different samples are
as follows: (5, 5), (5, 7), (5, 9), (7, 5), (7, 7), (7, 9), (9, 5), (9, 7), and (9, 9). (i)Find the mean
of each of the nine samples, then summarize the sampling distribution of the means in the
format of a table representing the probability distribution. (ii)Compare the population mean
to the mean of the sample means. (iii)Do the sample means target the value of the
population mean? In general, do means make good estimators of population means? Why or
why not?

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Definitions:

Future Cash Flows

The expected flow of cash into and out of a business over future periods, crucial for investment appraisal and valuing businesses.

Board Of Directors

The Board of Directors is a group of elected individuals tasked with overseeing the major decisions and policies of a company.

Shareholders

Individuals or entities that own shares in a corporation, giving them ownership stakes and typically the right to vote on corporate matters.

Principals

Principals typically refer to the main parties involved in a transaction or operation, such as the owners or chief stakeholders of a company.