Question

Fuel prices in Vancouver one month had a mean price of C$1.34 per liter.

Suppose that we take random samples of 45 prices from this population and calculate the sample mean price for each sample. We can assume that the prices in each sample are independent.

What will be the shape of the sampling distribution of the sample mean price?

Answer 1

Approximately Normal

Explanation:

Even though we don't know the shape of the population distribution of prices, the sampling distribution of the sample mean will be approximately normal since the sample size is large (n=45≥30).