An ethanol railroad tariff is a fee charged for shipments of ethanol on public r

Question

An ethanol railroad tariff is a fee charged for shipments of ethanol on public railroads. An agricultural association publishes tariff rates for railroad-car shipments of ethanol. Assuming that the standard deviation of such tariff rates is $1000, determine the probability that the mean tariff rate of 600 randomly selected railroad-car shipments of ethanol will be within $100 of the mean tariff rate of all railroad-car shipments of ethanol. Interpret your answer in terms of sampling error. The probability is (Round to three decimal places as needed.) Interpret this probability in terms of the sampling error. Choose the correct answer below and fill in the answer box to complete your choice. There is about a % chance that the sampling error made in estimating the tariff rate of all railroad-car shipments of ethanol will be $100. (Round to one decimal place as needed.)

Explanation / Answer

here std error =std deviation/(n)1/2 =40.825

hence P(mean-100<X<mean +100) =P(-100/40.825<Z<100/40.825)=P(-2.4495<Z<2.4495)=0.9928-0.0072=0.9857

there is about a 98.6% chance..........estimatiung the mean tarriff...................will be within $100

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