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StatisticsSuperchallengeSampling Distributions

Sampling Distributions · Superchallenge problem

A store rounds each of 200200 prices to the nearest 55 cents. Each rounding error is equally likely to be −2-2, −1-1, 00, 11 or 22 cents, independently. Using the central limit theorem (no continuity correction), estimate the probability that the total rounding error is more than 4040 cents in either direction. Give your answer to three decimal places.