Monthly incomes of employees at a particular company have a mean of $ 5954. The distribution of sample means for samples of size 70 is normal with a mean of $ 5954 and a standard deviation of $259. Suppose you take a sample of size 70 employees from the company and find that their mean monthly income is $ 5747. How many standard deviations is the sample mean from the mean of the sampling distribution?
A) 0.8 standard deviations above the mean
B) 0.8 standard deviations below the mean
C) 7.3 standard deviations below the mean
D) 207 standard deviations below the mean

Question

Quizplus · Accepted Answer

The sample mean is $5747, which is $207 below the population mean of $5954. Dividing this difference by the standard deviation of the sampling distribution ($259) gives approximately 0.8 standard deviations below the mean.

Monthly Incomes of Employees at a Particular Company Have a Mean