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7.49 Mobile Homes. According to the U.S. Census Bureau publication Manufactured Housing Statistics, the mean price of new mobile homes is \(65,100. Assume a standard deviation of \)7200. Let x~ denote the mean price of a sample of new mobile homes.
a. For samples of size 50, find the mean and standard deviation of x¯. Interpret your results in words.
b. Repeat part (a) with n=100.

Short Answer

Expert verified

(a) The mean is $65,100and the standard deviation is$1018.2.

(b) The mean is $65,100 and the standard deviation is $720.

Step by step solution

01

Part (a) Step 1: Given information

To find the mean and the standard deviation for the sample size of 50. Where, the mean price of new mobile homes is $65,100and the standard deviation of $7200.

02

Part (a) Step 2: Explanation

The mean x¯indicates the price of a sample of new mobile homes.

The mean price of new mobile homes is $65,100. And the standard deviation is $7200.

So, μ=$65,100and σ=$7200.
Then the Size of the sample,n=50.
Mean of x¯,
μx¯=μ

μx¯=$65,100

Standard deviation of x¯,

σx¯=σn
=720050
=72007.071068
=1018.2
The mean and standard deviation of all possible samples mean prices for 50 new mobile homes are $65,100and $1018.2 respectively.

03

Part (b) Step 1: Given information

To find the mean and the standard deviation for the sample size of 100. Where, the mean price of new mobile homes is $65,100and the standard deviation of $7200.

04

Part (b) Step 2: Explanation

Standard deviation of x¯is σx¯=σn

Where the sample size is n=100.
Mean of x¯is:

μx¯=μ
μx=65,100
Then,

σx¯=σn
=7200100
=720010
=720
The mean and standard deviation of all possible samples mean prices for 100new mobile homes are$65,100and $720, respectively.

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