There were 5,317 previously owned homes sold in a western city in the year 2000.

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There were 5,317 previously owned homes sold in a western city in the year 2000. The distribution of the sales prices of these homes was strongly right-skewed, with a mean of $206,274 and a standard deviation of $37,881. If all possible simple random samples of size 100 are drawn from this population and the mean is computed for each of these samples, which of the following describes the sampling distribution of the sample mean?

(A) Approximately normal with mean $206,274 and standard deviation $3,788
(B) Approximately normal with mean $206,274 and standard deviation $37,881
(C) Approximately normal with mean $206,274 and standard deviation $520
(D) Strongly right-skewed with mean $206,274 and standard deviation $3,788
(E) Strongly right-skewed with mean $206,274 and standard deviation $37,881

Answer: The correct answer is Approximately normal with mean $206,274 and standard deviation $3,788.

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