Sales prices of matchbox cars 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 cars from the 1960s is selected.Describe the sampling distribution for the sample mean sale price of the selected cars.
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 $2.80.
C) Normal with a mean of $5.25 and a standard error of $0.28.
D) Skewed-right with a mean of $5.25 and a standard error of $0.28.

Question

Quizplus · Accepted Answer

The sampling distribution of the sample mean will be approximately normal due to the Central Limit Theorem, with the same mean as the population mean ($5.25) and a standard error calculated as the population standard deviation divided by the square root of the sample size (which is $2.80/√100 = $0.28).

Sales Prices of Matchbox Cars from the 1960s Are Known