A restaurant's receipts show that the cost of customers' dinners has a skewed distribution with a mean of $54 and a standard deviation of $18.
Based on this information, what is the probability that a randomly selected 100 customers will spend an average of less than $50 on dinner?

1.32% probability that a randomly selected 100 customers will spend an average of less than $50 on dinner

Step-by-step explanation:

To solve this question, we need to understand the normal probability distribution and the central limit theorem.

Normal probability distribution:

Problems of normally distributed samples are solved using the z-score formula.

In a set with mean and standard deviation , the zscore of a measure X is given by:

The Z-score measures how many standard deviations the measure is from the mean. After finding the Z-score, we look at the z-score table and find the p-value associated with this z-score. This p-value is the probability that the value of the measure is smaller than X, that is, the percentile of X. Subtracting 1 by the pvalue, we get the probability that the value of the measure is greater than X.

Central limit theorem

The Central Limit Theorem estabilishes that, for a random variable X, with mean and standard deviation , a large sample size can be approximated to a normal distribution with mean and standard deviation

In this problem, we have that:

Based on this information, what is the probability that a randomly selected 100 customers will spend an average of less than $50 on dinner?

This probability is the pvalue of Z when X = 50. So

By the Central Limit Theorem

has a pvalue of 0.0132.

1.32% probability that a randomly selected 100 customers will spend an average of less than $50 on dinner

step-by-step explanation:

the terms of a geometric sequence can be found by beginning with the first term and multiplying by the common ratio repeatedly. a recursive formula for a geometric sequence with common ratio r is given by an=ran−1 a n = r a n − 1 for n≥2 n ≥ 2 .

step-by-step explanation: