Q & A Bank, Part-2, Ques-2.30

Discussion in 'CT3' started by shashankd, Oct 26, 2012.

  1. shashankd

    shashankd Member

    I am not able to understand the normal distribution for the sample mean.
    The formula says that X(bar) ~ N(mu, sigma^2/n) but here neither standard deviation(sigma) is squared nor divided by the sample mean number which is given as 10
    Reply ASAP !!
     
  2. Margaret Wood

    Margaret Wood Member

    I think it might look that way, but in fact the SD of X bar is 10^2 divided by n of 10, which is 10! Also, the SD of Y bar is 5^2 divided by n of 5, which is 5!
     
  3. shashankd

    shashankd Member

    But if you look at the exam style question of Chapter-9, i guess there is no difference between that and this question. M still not able to understand what you are trying to explain. :(
     
  4. bapan

    bapan Ton up Member

    Hi

    Just follow this logic ...

    sigma = SD(X) = 10
    Var(X_bar) = sigma^2 / n = 10^2 / 10 = 10

    So, X_bar ~ N(100, 10)
     
  5. shashankd

    shashankd Member

    But they are working in thousands....so if you square 10,000 n den divide by 10 then the answer is not 10,000.
     
  6. freddie

    freddie Member

    If you work in units rather than thousands, the variance of X bar is 10,000^2/10 and the SD of X bar is 3,162.2776. Working in thousands, the variance of X bar is 10^2/10 and the SD of X bar is 3.162.
     
  7. shashankd

    shashankd Member

    i still don't get it !
    it means that the solution is wrong coz it is one of the easiest questions and has been done several times in the core reading but differently here.
     

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