A federal auditor for nationally chartered banks from a random sample of 100 accounts found that the average demand deposit balance at the First National Bank of small town was $549.82.If the auditor needed a point estimate for the population mean for all accounts at this bank,what would she use?
A) The average of $54.98 for this sample.
B) The average of $549.82 for this sample.
C) There is no acceptable value available.
D) She would survey the total of all accounts and determine the mean.
E) Not enough information is given to answer this question.

Question

Quizplus · Accepted Answer

The auditor would use the average of $549.82 for this sample as the point estimate for the population mean for all accounts at the First National Bank. This is because the sample average is a good representation of the population mean, assuming that the sample was selected randomly and is not biased.

A Federal Auditor for Nationally Chartered Banks from a Random