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An important aspect of a federal economic plan was that
Chapter 7, Problem 48E(choose chapter or problem)
Problem 48E
An important aspect of a federal economic plan was that consumers would save a substantial portion of the money that they received from an income tax reduction. Suppose that early estimates of the portion of total tax saved, based on a random sampling of 35 economists, had mean 26% and standard deviation 12%.
a What is the approximate probability that a sample mean estimate, based on a random sample of n = 35 economists, will lie within 1% of the mean of the population of the estimates of all economists?
b Is it necessarily true that the mean of the population of estimates of all economists is equal to the percent tax saving that will actually be achieved?
Questions & Answers
QUESTION:
Problem 48E
An important aspect of a federal economic plan was that consumers would save a substantial portion of the money that they received from an income tax reduction. Suppose that early estimates of the portion of total tax saved, based on a random sampling of 35 economists, had mean 26% and standard deviation 12%.
a What is the approximate probability that a sample mean estimate, based on a random sample of n = 35 economists, will lie within 1% of the mean of the population of the estimates of all economists?
b Is it necessarily true that the mean of the population of estimates of all economists is equal to the percent tax saving that will actually be achieved?
ANSWER:
Step 1 of 3
Let 
The mean of the random variable 
The standard deviation of the random variable
Number of economists
