The meanamount purchased by a typical customer at Churchill’s Grocery Store is $23.50
with a standard deviationof $5.00. Assume the distribution of amounts purchased follows
the normal distribution. For a sample of 50 customers, answer the following questions.
a. What is the likelihood the sample mean is at least $25.00?
b. What is the likelihood the sample mean is greater than $22.50 but less than $25.00?
c. Within what limits will 90 percent of the sample means occur?
The solution contains the determination of various probabilities using Normal distribution.