A sample of 36 working days was analyzed for the amount of income of a company. If the income has a standard deviation of 7, what is the approximate probability that the mean of this sample is greater than 44.50, assuming that the mean of the yearly income is ΞΌ=42? | Financial Risk Manager Part 1 Quiz - LeetQuiz
Financial Risk Manager Part 1
Explanation:
Explanation
This problem applies the Central Limit Theorem to find the probability that a sample mean exceeds a certain value.
Central Limit Theorem: For large samples (n β₯ 30), the sampling distribution of the mean is approximately normal
Standard Error: Measures the variability of sample means around the population mean
Z-score: Standardizes the sample mean to compare with standard normal distribution
This matches option B (0.016).
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A sample of 36 working days was analyzed for the amount of income of a company. If the income has a standard deviation of 7, what is the approximate probability that the mean of this sample is greater than 44.50, assuming that the mean of the yearly income is ΞΌ=42?