In a given year, the average annual salary of a NFL football player was $189,000 with a standard deviation of $20,500. If a sample of 50 players was taken, then the probability that the sample mean will be $192,000 or more is

Answer :

Answer:

15.15% probability that the sample mean will be $192,000 or more.

Step-by-step explanation:

To solve this problem, we need to understand the normal probability distribution and the central limit theorem.

Normal probability distribution

Problems of normally distributed samples are solved using the z-score formula.

In a set with mean [tex]\mu[/tex] and standard deviation [tex]\sigma[/tex], the zscore of a measure X is given by:

[tex]Z = \frac{X - \mu}{\sigma}[/tex]

The Z-score measures how many standard deviations the measure is from the mean. After finding the Z-score, we look at the z-score table and find the p-value associated with this z-score. This p-value is the probability that the value of the measure is smaller than X, that is, the percentile of X. Subtracting 1 by the pvalue, we get the probability that the value of the measure is greater than X.

Central Limit Theorem

The Central Limit Theorem estabilishes that, for a random variable X, with mean [tex]\mu[/tex] and standard deviation [tex]\sigma[/tex], a large sample size can be approximated to a normal distribution with mean [tex]\mu[/tex] and standard deviation [tex]s = \frac{\sigma}{\sqrt{n}}[/tex]

In this problem, we have that:

[tex]\mu = 189000, \sigma = 20500, n = 50, s = \frac{20500}{\sqrt{50}} = 2899.14[/tex]

The probability that the sample mean will be $192,000 or more is

This is 1 subtracted by the pvalue of z when X = 192000. So

[tex]Z = \frac{X - \mu}{\sigma}[/tex]

By the Central Limit Theorem

[tex]Z = \frac{X - \mu}{s}[/tex]

[tex]Z = \frac{192000 - 189000}{2899.14}[/tex]

[tex]Z = 1.03[/tex]

[tex]Z = 1.03[/tex] has a pvalue of 0.8485.

1-0.8485 = 0.1515

15.15% probability that the sample mean will be $192,000 or more.

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