The daily revenue at a university snack bar has been recorded for the past five years. Records indicate that the mean daily revenue is $3450 and the standard deviation is $300. The distribution
Is skewed to the right due to several high volume days (football game days). Suppose that 100
Days are randomly selected and the average daily revenue computed. Which of the following
Describes the sampling distribution of the sample mean?
A)normally distributed with a mean of $345 and a standard deviation of $30
B)normally distributed with a mean of $3450 and a standard deviation of $30
C)skewed to the right with a mean of $3450 and a standard deviation of $300
D)normally distributed with a mean of $3450 and a standard deviation of $300

Question

Quizplus · Accepted Answer

According to the Central Limit Theorem, the sampling distribution of the sample mean will be approximately normally distributed if the sample size is large enough (in this case, 100 days is considered large). The mean of the sampling distribution will be the same as the population mean ($3450), and the standard deviation of the sampling distribution (standard error) is the population standard deviation divided by the square root of the sample size, which is $300/√100 = $30.

The Daily Revenue at a University Snack Bar Has Been