Information from American Institute of Insurance indicates mean amount of life insurance for each household in United States is $110,000. This distribution follows normal distribution with the standard deviation of $40,000.
a. If we select a random sample of 50 households, what is the standard error of the mean?
b. Find out the expected shape of distribution of sample mean?
c. Find out the likelihood of selecting sample with mean of at least $112,000?
d. Find out the likelihood of selecting sample with mean of more than $100,000?