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Imagine that a sample of 400 rental units shows that (i) the distribution of rents paid per month is not described by a normal distribution,
(ii) that the mean rent of the sample is $755, and (iii) the standard deviation of the sample is $100.
a) Without seeing the distribution, can you calculate the probability that the rent of a randomly selected unit will be greater than $800? If yes, calculate the probability; if no, explain.
b) Without seeing the distribution, can you calculate the probability that the mean rent of another sample of 400 units will be greater than $800? If yes, calculate the probability; if no, explain.
c) Why is the answer to (b) only an estimate? (What two numbers about the entire population are you not sure of?)
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what are the advantages of a frequency distributions
Where an element of randomness is introduce by suing random numbers to pick up the unit with which to start this process of sampling is known as systematic sampling.
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