[Get Answer ]-Statistics 260 Question Please Please Help 1

Question Description

The significant decline of savings inthe United States from the 1970s and 1980s to the 1990s and 2000s hasbeen widely discussed by economists.  According to the Bureau ofEconomic Analysis, the savings rate of American households, defined as apercentage of the disposable personal income, was 4.20% in 2009.  Thereported savings rate is not uniform across the country.  A publicpolicy institute conducts two of its own surveys to compute the savingsrate in the Midwest.  In the first survey, a sample of 160 households istaken and the average savings rate is found to be 4.48%.  Anothersample of 40 households finds an average savings rate of 4.60%.  Assumethat the population standard deviation is 1.4%.

1. Compute the probability of obtaining a sample mean that is at least as high as the one computed in each of the two surveys.

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2. Use these probabilities to decide which of the two samples islikely to be more representative of the United States as a whole.

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