Major league baseball salaries averaged $3.26 million with a standard deviation of $1.2 million in a recent year. Suppose a sample of 100 major league players was taken. What was the standard error for the sample mean salary?
A) $0.012 million
B) $0.12 million
C) $12 million
D) $1,200.0 million

Question

Quizplus · Accepted Answer

The formula for the standard error of the mean is:

SE = σ/√n

where σ is the standard deviation, n is the sample size, and √n is the square root of the sample size.

Plugging in the values given:

SE = 1.2 million / √100
SE = 1.2 million / 10
SE = 0.12 million

Therefore, the standard error for the sample mean salary is $0.12 million or choice B.

Major League Baseball Salaries Averaged $3