A Population of 1,000 Students Spends an Average of $10

question 51

Short Answer

A population of 1,000 students spends an average of $10.50 a day on dinner. The standard deviation of the expenditure is $3. A simple random sample of 64 students is taken.
a.What are the expected value, standard deviation, and shape of the sampling distribution of the sample mean?
b.What is the probability that these 64 students will spend a combined total of more than $715.21?
c.What is the probability that these 64 students will spend a combined total between $703.59 and $728.45?

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Definitions:

Stock Price

This is the cost of a single share of a company’s stock, a direct reflection of what investors believe a company is worth.

Stock Dividend

A dividend payment made to shareholders in the form of additional shares rather than cash, adjusting the ownership proportionately.

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuing party, often used in the accounting of share capital.

Capital in Excess of Par

The amount by which the proceeds from the issuance of shares exceed the par value of the shares, often recorded in the shareholders' equity section of the balance sheet.