The prices of houses in the US is strongly skewed to the right with a mean of $383,500 and a standard deviation of $289,321. A real estate agent takes a random sample of 30 houses and records the mean price. What is the best description for the sampling distribution?

The sampling distribution of the sample mean has a mean equal to the population mean: $383,500. Its standard deviation, called the standard error, is $289,321 ÷ √30 ≈ $52,823. With a sample size of 30, the Central Limit Theorem says the distribution of sample means is approximately Normal, even though house prices are strongly skewed to the right.

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