Sales prices of baseball cards from the 1960s are known to possess a skewed-right distribution with a mean sale price of $5.25 and a standard deviation of $2.80. Suppose a random sample of 100 cards from the 1960s is selected. Describe the sampling distribution for the sample mean sale price of the selected cards.
A) skewed-right with a mean of $5.25 and a standard error of $2.80
B) normal with a mean of $5.25 and a standard error of $0.28
C) skewed-right with a mean of $5.25 and a standard error of $0.28
D) normal with a mean of $5.25 and a standard error of $2.80

Question

Quizplus · Accepted Answer

The sampling distribution of the sample mean sale price of the selected cards will be approximately normal due to the Central Limit Theorem, with a mean of $5.25 and a standard error of $0.28, which is the standard deviation of the population divided by the square root of the sample size.

Sales Prices of Baseball Cards from the 1960s Are Known