Question

(a) A random sample of 10 houses in a particular area, each of which is heated with natural gas, is selected and the amount of gas (therms) used during the month of January is determined for each house. The resulting observations are 125, 103, 118, 109, 122, 82, 99, 138, 151, 149. Let μ denote the average gas usage during January by all houses in this area. Compute a point estimate of μ.

Answer 1

In average, houses in the particular area use 119,6 therms of gas during the month of January.

Explanation:

The μ formula is:

μ= ΣXi/N

ΣXi= is the sum of each xi. xi is each observation in the sample.

N= Total number of observations.

For this case:

ΣXi= 125+103+118+ 109+ 122+ 82+ 99+ 138+ 151+ 149

ΣXi= 1196

N= 10

μ= 1196/10

μ= 119,6

In average, houses in the particular area use 119,6 therms of gas during the month of January.