ABDULRAZAQ MUHAMMAD SANI

BU/16C/ENG/2110
Question One
Evan price-checked 123 online auction sellers to record their average asking price
for his favourite game. According to a major nation price-checking site, the national
average online auction cost for the game is $35.00 with a standard deviation of
$3.00. Evan found the prices less than $34.86 on average. How likely is this result?
Solution
n = 123
μ = $35.00
σ = $3.00
Since there are more than 30 samples, Central Limit Theorem applies
μx= μ
σ
σx = √ n
3
σx = √ 123

σx = 0.2705
Probability that the price is less than $34.86 on average; P(x<34.86)
34.86−35
Z=
0.2705

Z = -0.5176
P(Z<= -0.5176) = 0.3015 or 30.15%
Question Two
Amir asked 42 fellow high-school students how much they spent for lunch, on
average. According to his research online, the amount spent for lunch by high
school student’s nationwide has μ = $15, with s = $9. We would assume that
Amir’s random sample should fall within this sampling distribution. What is the
probability that Mack’s random sample will have a value that is within $0.01 of the
national average?
Solution
σ 9
σx = √ n = √ 42 = 1.389
For Mack’s sample to be above $15 with $0.01 ($15.01),
15.01−15
Z1 =
1.389
= 0.0072
For Mack’s sample to be below $15 with $0.01 ($14.99),
1 4.99−15
Z2 = = 1.389 = -0.0072
P(-0.01<Z<0.01) = 0.0040 + 0.0040 = 0.008 or 0.8%