Problem

The assets (in billions of dollars) of the four wealthiest people in a particular country are 39, 27, 17, 16. Assume that samples of size $n=2$ are randomly selected with replacement from this population of four values. \begin{tabular}{|c|c|c|c|} \hline 33 & $\frac{2}{16}$ & 21.5 & $\frac{2}{16}$ \\ \hline 28 & $\frac{2}{16}$ & 17 & $\frac{1}{16}$ \\ \hline 27.5 & $\frac{2}{16}$ & 16.5 & $\frac{2}{16}$ \\ \hline 27 & $\frac{1}{16}$ & 16 & $\frac{1}{16}$ \\ \hline \end{tabular} (Type integers or fractions.) b. Compare the mean of the population to the mean of the sampling distribution of the sample mean. The mean of the population, 24.75 , is equal to the mean of the sample means, 24.75 . (Round to two decimal places as needed.) c. Do the sample means target the value of the population mean? In general, do sample means make good estimates of population means? Why or why not? The sample means the population mean. In general, sample means make good estimates of population means because the mean is estimator.

Solution

Step 1 :Calculate the mean of the population. The mean of the population is the sum of all the values divided by the number of values. In this case, the population is [39, 27, 17, 16], so the mean of the population is \(\frac{39+27+17+16}{4} = 24.75\).

Step 2 :Calculate the mean of the sample means. The mean of the sample means is the sum of all the sample means divided by the number of sample means. In this case, the sample means are [33, 21.5, 28, 17, 27.5, 16.5, 27, 16], so the mean of the sample means is \(\frac{33+21.5+28+17+27.5+16.5+27+16}{8} = 23.3125\).

Step 3 :Compare the mean of the population to the mean of the sample means. In this case, the mean of the population is 24.75 and the mean of the sample means is 23.3125. They are not equal, so the sample means do not target the value of the population mean in this case.

Step 4 :However, this does not mean that sample means are not good estimates of population means in general. The discrepancy could be due to the small sample size or the specific samples chosen. If we were to take many samples and calculate their means, the average of these sample means would be very close to the population mean. This is because the mean is an unbiased estimator.

Step 5 :\(\boxed{\text{Final Answer: The mean of the population, 24.75, is not equal to the mean of the sample means, 23.3125. However, in general, sample means make good estimates of population means because the mean is an unbiased estimator.}}\)

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