The typical average price of gasoline should be $2.81 and not $2.69 because $2.69 is not the average of the sampled prices.
What is the mean of the sample?
We are given the prices of a gallon of gasoline from 5 gas stations surveyed as; $2.79, $2.99, $2.69, $2.89, and $2.69.
Thus, to calculate the mean, we will use the formula;
Mean = ∑x/n
Mean = (2.79 + 2.99 + 2.69 + 2.89 + 2.69)/5
Mean = 14.05/5
Mean = $2.81
Thus, the typical average price of gasoline should be $2.81 and not $2.69
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