Major league baseball salaries averaged $1.5 million with a standard deviation of $0.8 million in 1994. suppose a sample of 100 major league players was taken. find the approximate probability that the average salary of the 100 players exceeded $1 million.

The probability that the avg. salary of the 100 players exceeded $1 million is approximately 1.

Explanation:

Step 1: Estimate the standard error. Standard error can be calcualted by dividing the standard deviation by the square root of the sample size:

So, Standard Error is 0.08 million or $80,000.

Step 2: Next, estimate the mean is how many standard errors below the population mean $1 million.

-6.250 means that $1 million is siz standard errors away from the mean. Since, the value is too far from the bell-shaped normal distribution curve that nearly 100% of the values are greater than it.

Therefore, we can say that because 100% values are greater than it, probability that the avg. salary of the 100 players exceeded $1 million is approximately 1.

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