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The information of the American Institute of Insurance indicates the average or median quantity of life insurance per family in the US is $110,000. This distribution has a positive slant. The standard deviation of the population is not known. A chance sample of 50 families revealed an average or median of $112,000 and a standard deviation of $40,000. What is the standard error of the average or median?
a) Suppose that you select a 50 families sample. Which is the form expected from the distribution of the average or median of the sample?
b)Which is the probability of selecting a sample with an average or median greater than $112,000?
c) Which is the probability of selecting a sample with an average or median greater than $100,000?
d) Find the probability of selecting a sample with an average or median greater than $100,000 but less than $112,000.
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