Peak Previously Played Picks buys and sells used sports equipment.For the past year,the mean purchase of used sports equipment was $36 with a standard deviation of $8.Find the probability that the mean purchase from a sample of 16 customers will be less than $20.Use the Microsoft Excel function NORM.DIST.

A) 0.00%
B) 100.0%
C) 2.28%
D) 69.13%

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tycee driggs · Accepted Answer

Final Answer : A, Explanation :  Given the mean ($36) and standard deviation ($8) of purchases, and considering a sample size of 16, the standard error is $8/√16 = $2. The Z-score for a mean purchase of $20 is (20-36)/2 = -8. Using NORM.DIST in Excel with these values would result in a probability so close to 0 it rounds down to 0.00%, indicating it's extremely unlikely for the mean purchase from a sample of 16 customers to be less than $20.

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