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Q1) Information from American Institute of Insurance points out the mean amount of life insurance per household in United States is $110,000. This distribution follows normal distribution with a standard deviation of $40,000.
a) If we choose a random sample of 50 households, determine standard error of the mean?
b) What is the expected shape of the distribution of sample mean?
c) What is the probability of selecting a sample with a mean of at least $112,000?
d) What is the probability of selecting a sample with a mean of more than $100,000?
e) Determine the probability of selecting sample with a mean of more than $100,000 but less than $112,000.
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