Based on the Law of Large Numbers, we know that any sample value will tend to li

Question

Based on the Law of Large Numbers, we know that any sample value will tend to lie closer and closer to the thrue population value (parameter: p or u) as the sample size becomes larger and larger. Therefore, a larger sample size will yeild a histogram of sample statisic values that are closer to the populatin parameter than will a smaller size. With this in mind anser the following question.

The average monthly cell phone bill (the parameter) for a particular carrier in Pittsburgh, PA is $90. Which of the following is most likley?

A) The average monthly cell phone bill (a statistic) for 80 randomly selected customers (of this carrier) is between $80 and $100.

B)The average monthly cell phone bill (a statistic) for for 350 randomly selected customers (of this carrier) is between $80 and $100.

C) Both A nd B are equally likely

Explanation / Answer

From the law of large numbers

B)The average monthly cell phone bill (a statistic) for for 350 randomly selected customers (of this carrier) is between $80 and $100

Because as the sample size increases the average tends to 90 which is in between 80 to 100. So it is most likely to happen than with sample size 80

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