Assignment:
The mean annual cost of auto insurance is $939. Assume thatthe standard deviation is $245
a. What is the probability that a simple random sample ofautomobile insurance policies will have a sample mean within $25 of the population mean for each of the following sample sizes: 30, 50,100 and 400.
b. What is the advantage of a larger sample size whenattempting to estimate the population mean?
Provide complete and step by step solution for the question and show calculations and use formulas.