The Average Weekly Earnings of Bus Drivers in a City $\mu$

question 98

Short Answer

The average weekly earnings of bus drivers in a city are $950 (that is $\mu$ ) with a standard deviation of $45 (that is $\sigma$ ). Assume that we select a random sample of 81 bus drivers.
a.Compute the standard error of the mean.
b.What is the probability that the sample mean will be greater than $960?
c.If the population of bus drivers consisted of 400 drivers, what would be the standard error of the mean?

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Definitions:

Maximize Profits

The goal of businesses to achieve the highest possible level of profit through revenue maximization and cost minimization.

Nondiscriminating Monopolist

A monopolist who charges all consumers the same price for its product, regardless of the quantity demanded or consumer preferences.

Marginal Cost

The investment needed to produce an extra unit of a product or service.

Profit-Maximizing

The process or strategy of adjusting the production and sale of goods or services to generate the highest possible profit.