Suppose a research firm conducted a survey to determine the average amount of money steady smokers spend on cigarettes during a week. A sample of 500 steady smokers revealed that the sample mean is $20 and the sample standard deviation is $5. What is the point estimate?
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A. B. C. D. E.A
The sample mean is a good estimate for the population mean.
The point estimate in this context refers to an estimate of the population parameter based on the information provided by the sample. In this case, we want to estimate the average amount of money steady smokers spend on cigarettes per week.
The sample mean is given as $20. The sample mean is a common point estimate for the population mean. It is calculated by taking the sum of all the observations in the sample and dividing it by the sample size. In this case, the sample mean is $20.
Therefore, the correct answer is A. $20.
Option B (None of these answers) is incorrect because we do have an answer that matches the given information.
Option C ($25) is incorrect because the sample mean is $20, not $25.
Option D ($0.04) is incorrect because it is not a reasonable estimate for the average amount of money spent on cigarettes. It seems to be an unrelated value.
Option E ($5) is incorrect because it represents the sample standard deviation, not the point estimate for the average amount spent on cigarettes.
To summarize, the point estimate for the average amount of money steady smokers spend on cigarettes per week, based on the sample information provided, is $20 (option A).