An insurance company claims that in the entire population of homeowners, the mean annual loss from fire is
# = $2500
with a standard deviation of 0 = $5000 . Suppose we take a sample of n = 100 . The distribution
is right-skewed. Use for problems 5 - 8.
5. Calculate the mean and standard deviation of the sampling distribution of * .
6. Interpret the standard deviation.
7. Justify that the sampling distribution of * is approximately normal.
8. Calculate the probability that in the sample the loss from fire was less than $1300, then interpret the meaning of this probability in context of the problem.
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