An Accountant Reviewed a Firm's Billing for an Entire Year

question 146

Essay

An accountant reviewed a firm's billing for an entire year and computed an average bill of $125, with a standard deviation of $15. The firm's comptroller claims that a sample of 50 bills would have saved a lot of work and achieved the same result.
Is the sampling distribution of the sample mean approximately normal?
______________
What is the mean?
______________
What is the standard deviation?
______________
Is the comptroller's claim valid?
______________
Explain.
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Definitions:

Sterling Foundation

An organization or entity established for the purpose of managing assets or funds for charitable, educational, or similar goals.

Program Service Expenses

Costs directly incurred in carrying out the operational activities aligned with the mission of a non-profit or governmental organization.

Supporting Service Expenses

Costs incurred by a business or organization for activities that aid the operation but do not directly contribute to the main business activity.

Not-for-Profit Entity

An organization that operates for charitable, educational, cultural, religious, or other purposes serving the public interest, where profitability is not the primary goal.