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The average annual cost of automobile insurance is $687. Use this value as the population mean and assume that the population standard deviation is funny looking o with line on top = $230. Consider a sample of 45 automobile insurance policies.
a. Show the sampling distribution of line over x where line over x is the sample mean annual cost of automobile insurance.
b. What is the probability that the sample mean is within $100 of the population mean?
c. What is the probability that the sample mean is within $25 of the population mean?
d. What would you recommend if an insurance agency wanted the sample mean to estimate the population mean within + or - $25?
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