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. Assurming that the standard deviation of such tariff rates is $1250, determine the probability that the mean tariff rate of 350 randomly selected railroad-car shipments of ethanol will be within $90 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 V tariff rate of all railroad-car shipments of ethanol will be $90 There is about a % chance that the sampling error made in estimating the (Round to one decimal place as needed.)

Explanation / Answer

1)probability=(-90/(1250/sqrt(350)<Z<90/(1250/sqrt(350))=P(-1.35<Z<1.35)=0.9115-0.0885=0.823

( please try 0.822 if this comes wrong)

2)

there is about a 82.3% chanve that the sampling error made in estimating the mean rate of all railroad car shipments will be within $90.

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