# SOLUTION: Assume that the SD of monthly rent paid by student in a particular town is \$40. A random sample of 100 students was taken to estimate the mean monthly rent paid by the whole st

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 Algebra: Probability and statistics Solvers Lessons Answers archive Quiz In Depth

 Question 344428: Assume that the SD of monthly rent paid by student in a particular town is \$40. A random sample of 100 students was taken to estimate the mean monthly rent paid by the whole student population. a) What is the standard error of sample mean rent? b) What is the probability that the sample mean exceeds the population mean by more than %5. Answer by stanbon(57219)   (Show Source): You can put this solution on YOUR website!Assume that the SD of monthly rent paid by student in a particular town is \$40. A random sample of 100 students was taken to estimate the mean monthly rent paid by the whole student population. ----------------------- a) What is the standard error of sample mean rent? Ans: 40/sqrt(100) = 40/10 = 4 ---------------------------------------- b) What is the probability that the sample mean exceeds the population mean by more than %5. The mean of the sample means and the mean of the population are the same according to the Central Limit Theorem. ---- 45% of the sample means are to the right of a point that is is 5% to the right of the mean. ------------------ Ans: 45% ============== Cheers, Stan H.