Suppose that you own a coffee shop. You want to estimate the population mean of

Question

Suppose that you own a coffee shop. You want to estimate the population mean of the daily sales. A sample of past 5 days of sales data provided the following information:

Day: 1 2 3 4 5

Coffees sold( in cups):94 100 85 89 87

You are going to use the sample average as a point estimator for the population mean. You also want to measure the accuracy of your estimator and use the standard error as the measure of the accuracy. What is the standard error of your point estimator? When you calculate a variance or a standard deviation, use the sample version formula.

which one is the correct answer?

A.Square-root of 8.8

B.Square-root of 10.8

C.Square-root of 6.3

D.Square-root of 10.3

E.Square-root of 7.3

Explanation / Answer

In the given sample,

Sample variance = 36.5

As we know, the standard error is the square root of variance/ Sample size.

Here,

Sample size = 5

Therefore,

Standard error = square root of (36.5/5) = Square root of 7.3

Option E is correct.

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