A research firm conducted a survey to determine the mean amount Americans spend on coffee during a week. They found the distribution of weekly spending followed the normal distribution with a population standard deviation of $5. A sample of 49 Americans revealed that x = $20.

What is the point estimate of the population mean?

By the Central Limit Theorem, the point estimate of the population mean is $20.

Step-by-step explanation:

The Central Limit Theorem estabilishes that, for a normally distributed random variable X, with mean and standard deviation , the sampling distribution of the sample means with size n can be approximated to a normal distribution with mean and standard deviation .

For a skewed variable, the Central Limit Theorem can also be applied, as long as n is at least 30.

In this problem, we have that:

The mean of the sample is $20.

So, by the Central Limit Theorem, the point estimate of the population mean is $20.

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