Question 1: Explain and describe:
(a) The difference between population mean and sample mean.
(b) The concept of estimation biases.
(c) The properties of the sampling distribution of the sample mean.
Question 2: Suppose an investment is normally distributed with mean 10% and standard deviation 5%. Find the probability of not losing money.
Question 3: Find the probability that the sample mean X¯ is lower than 750. The distribution of X is normal with mean 800 and variance 100. The sample mean is constructed using 25 observations.
Question 4: Construct a 95% confidence interval estimator for the population mean X¯ = 370.16, when σ = 75 and n = 25.