Homeowners’ insurance rates vary throughout the country according to a
normal distribution with µ = 600 and σ = 75. Suppose that FYI Insurance
Company decides to conduct a review of 100 of its policies. Upon review of the
100 policies, it is found that the mean annual rate paid is x = 625. Assume the
100 polices were randomly selected.
A. Calculate the mean and standard deviation of the sampling distribution of x.