Based on the Law of Large Numbers, we know that any sample value will tend to li
ID: 3383795 • Letter: B
Question
Based on the Law of Large Numbers, we know that any sample value will tend to lie closer and closer to the thrue population value (parameter: p or u) as the sample size becomes larger and larger. Therefore, a larger sample size will yeild a histogram of sample statisic values that are closer to the populatin parameter than will a smaller size. With this in mind anser the following question.
The average monthly cell phone bill (the parameter) for a particular carrier in Pittsburgh, PA is $90. Which of the following is most likley?
A) The average monthly cell phone bill (a statistic) for 50 randomly selected customers (of this carrier) is over $115.
B)The average monthly cell phone bill (a statistic) for for 250 randomly selected customers (of this carrier) is over $115.
C) Both A nd B are equally likely
Explanation / Answer
From the law of large numbers
A)The average monthly cell phone bill (a statistic) for 50 randomly selected customers is over $115 is most likely
Because as the sample size increases the average phone bill will come more closer to mean ($90) so for 250 sample size is least likely possible to have bill >115 than with 50 sample size
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