A large firm has 10,000 employees. Although it provides health insurance, employees still spend personal income on medical expenses. Last year the

mean amount per employee spent on medical expenses was $52.5 with a standard deviation $12.0.

(a) What is the probability that a simple random sample of 36 employees will yield a mean between $50 and $55?

(b) What is the probability that a simple random sample of 36 employees will yield a mean greater than $60?

(c) What might be a problem if you use the normal distribution to make these calculations for a single person chosen at random from the

employee list?

Answer rating: 100% (QA)

To solve these problems we can use the Central Limit Theorem which states that the sampling distribution of the sample mean will be approximately normally distributed regardless of the original distri... View the full answer