Answer: The probability that the avg. salary of the 100 players exceeded $1 million is approximately 1.
Explanation:
Step 1: Estimate the standard error. Standard error can be calcualted by dividing the standard deviation by the square root of the sample size:
[tex] SE=\frac{0.8}{\sqrt{100}}=\frac{0.8}{10} = 0.08 [/tex]
So, Standard Error is 0.08 million or $80,000.
Step 2: Next, estimate the mean is how many standard errors below the population mean $1 million.
[tex] \frac{1 - 1.5}{0.08} [/tex]
[tex] =-6.250 [/tex]
-6.250 means that $1 million is siz standard errors away from the mean. Since, the value is too far from the bell-shaped normal distribution curve that nearly 100% of the values are greater than it.
Therefore, we can say that because 100% values are greater than it, probability that the avg. salary of the 100 players exceeded $1 million is approximately 1.
