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Sampling, Inference & the t-Test · Question 36 of 70

About 95% of sample means lie within 1.96 standard errors of the population mean.

Question 36

HardOriginal question

A city has 3,60,000 households, and their monthly electricity bills have a standard deviation of ₹300. A random sample of 900 households has a mean bill of ₹1,850.

About 95% of sample means lie within 1.961.96 standard errors of the population mean. In the electricity-bill survey, how far is that?

Options for question 36

Show the answer and explanation
CorrectNot quiteAnswer A

Correct answer: A

Explanation

  1. The standard error is ₹10.

  2. 1.96×10=19.61.96 \times 10 = 19.6 rupees.

Worth noting

₹588 uses the ₹300 spread of single bills instead of the standard error.

Concept
How far sample means stray
Typical time
150 s
Your time
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The rule this testsParameters, statistics and the central limit theorem
Practise this chapter →

Ten questions from Sampling, Inference & the t-Test, at your own pace.

Practise this chapter →

Ten questions from Sampling, Inference & the t-Test, at your own pace.