statistics help part 2
Thread Starter
Joined: Jan 2009
Posts: 4,804
Likes: 1
From: SoCal
statistics help part 2
anyone have any clue? I got some help last night but now i ran into this
The american council of life insurance reports the mean life insurance in force per coverage family in the life insurance fact book. Assume that the standard deviation of life insurance in force is $50,900
a) determine the probability that the sampling error made in estimating the population mean life insurance in force by that of a sample of 500 covered families will be $2000 or less.
b) Must you assume that life-insurance amounts are normally distributed in order to answer part (a)? What if the sample size is 20 instead of 500?
c) repeat part (a), for sample size 5000.
If anyone gets this thanks in advance..
The american council of life insurance reports the mean life insurance in force per coverage family in the life insurance fact book. Assume that the standard deviation of life insurance in force is $50,900
a) determine the probability that the sampling error made in estimating the population mean life insurance in force by that of a sample of 500 covered families will be $2000 or less.
b) Must you assume that life-insurance amounts are normally distributed in order to answer part (a)? What if the sample size is 20 instead of 500?
c) repeat part (a), for sample size 5000.
If anyone gets this thanks in advance..
Registered User
Joined: Jul 2001
Posts: 6,592
Likes: 0
From: Yorba Linda, CA
a) Compute the standard error of the estimate. (You should have a formula for this, involving the standard deviation of the population and the sample size.) Then figure out how many standard errors $2,000 represents. Then look up the probability in a table.
b) No, but you do have to make an assumption about the distribution of the sample mean. The Central Limit Theorem probably plays a role here. If the sample size is small, you'll use a different table than you did for part a); I'll leave it to you to determine which table to use.
c) Same as a).
b) No, but you do have to make an assumption about the distribution of the sample mean. The Central Limit Theorem probably plays a role here. If the sample size is small, you'll use a different table than you did for part a); I'll leave it to you to determine which table to use.
c) Same as a).
Thread Starter
Joined: Jan 2009
Posts: 4,804
Likes: 1
From: SoCal
Originally Posted by magician' date='Jan 26 2009, 12:29 PM
a) Compute the standard error of the estimate. (You should have a formula for this, involving the standard deviation of the population and the sample size.) Then figure out how many standard errors $2,000 represents. Then look up the probability in a table.
b) No, but you do have to make an assumption about the distribution of the sample mean. The Central Limit Theorem probably plays a role here. If the sample size is small, you'll use a different table than you did for part a); I'll leave it to you to determine which table to use.
c) Same as a).
b) No, but you do have to make an assumption about the distribution of the sample mean. The Central Limit Theorem probably plays a role here. If the sample size is small, you'll use a different table than you did for part a); I'll leave it to you to determine which table to use.
c) Same as a).
i sorta have it, imma see if i can knock it out with the info you gave me. If not, i still have 4 hours till class starts to work on it.
Registered User
Joined: Aug 2006
Posts: 887
Likes: 0
From: Anaheim, CA
do you use minitab in your class? its a really helpful statistical software, however its quite different to use, but is great once you get the hang of it. thats how i computed all my probability related problems. i however dont have acces to the program anymore and no longer have my statistics book, so i cant really help as i dont have the tables.