Question

The mean monthly food budget for 39 residents of the local apartment complex is $419. What is the best point estimate for the mean monthly food budget for all residents of the local apartment complex?

Answer 1

The best point estimate for the mean monthly food budget for all residents of the local apartment complex is $419.

Explanation:

The Central Limit Theorem estabilishes that, for a normally distributed random variable X, with mean
`\mu` and standard deviation
`\sigma`, the sampling distribution of the sample means with size n can be approximated to a normal distribution with mean
`\mu` and standard deviation
`s = (\sigma)/(√(n))`.

For a skewed variable, the Central Limit Theorem can also be applied, as long as n is at least 30.

In this problem:

The mean of the sample is $419.

What is the best point estimate for the mean monthly food budget for all residents of the local apartment complex?

By the Central Limit Theorem(inverse, that is, sample to the population), $419.

The best point estimate for the mean monthly food budget for all residents of the local apartment complex is $419.