Peak Previously Played Picks buys and sells used sports equipment.For the past year,the mean purchase of used sports equipment was $36 with a standard deviation of $8.Find the probability that the mean purchase from a sample of 16 customers will be less than $20.Use the Microsoft Excel function NORM.DIST.
A)0.00%
B)100.0%
C)2.28%
D)69.13%

Question

Quizplus · Accepted Answer

Given the mean ($36) and standard deviation ($8) of purchases, and considering a sample size of 16, the standard error is $8/√16 = $2. The Z-score for a mean purchase of $20 is (20-36)/2 = -8. Using NORM.DIST in Excel with these values would result in a probability so close to 0 it rounds down to 0.00%, indicating it's extremely unlikely for the mean purchase from a sample of 16 customers to be less than $20.

Peak Previously Played Picks Buys and Sells Used Sports Equipment