Modern Business Statistics with Microsoft Office Excel (with XLSTAT Education Edition Printed Access Card) (MindTap Course List)
Modern Business Statistics with Microsoft Office Excel (with XLSTAT Education Edition Printed Access Card) (MindTap Course List)
6th Edition
ISBN: 9781337115186
Author: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
Publisher: Cengage Learning
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Textbook Question
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Chapter 7.6, Problem 30E

The population proportion is .30. What is the probability that a sample proportion will be within ±.04 of the population proportion for each of the following sample sizes?

  1. a. n = 100
  2. b. n = 200
  3. c. n = 500
  4. d. n = 1000
  5. e. What is the advantage of a larger sample size?

a.

Expert Solution
Check Mark
To determine

Find the probability that the a sample proportion will be within ±0.04 of the population proportion for n=100.

Answer to Problem 30E

The probability that a sample proportion will be within ±0.04 of the population proportion for n=100 is 0.6156.

Explanation of Solution

Calculation:

The given information is that the population proportion is 0.30.

Sampling distribution of p¯:

The probability distribution all possible values of the sample proportion p¯ is termed as the sampling distribution of p¯.

  • The expected value of p¯ is, E(p¯)=p.
  • The standard deviation of p¯ is

    For finite population, σp¯=NnN1p(1p)n

    For infinite population, σp¯=p(1p)n

  • When np5 and n(1p)5 then the sampling distribution of p¯ is approximated by a normal distribution.

The expected value of p¯ is,

E(p¯)=p=0.30

Thus, the expected value of p¯ is 0.30.

The standard deviation of p¯ is σp¯=p(1p)n.

Substitute p as 0.30 and n as 100 in the formula,

σp¯=p(1p)n=0.30(10.30)100=0.21100=0.0021

      =0.0458

Thus, the standard deviation of p¯ is 0.0458.

Here,

np=100(0.30)=305

n(1p)=100(10.30)=100(0.70)=705

Therefore, the sampling distribution of p¯ is approximately normal with E(p¯)=0.30 and σp¯=0.0458.

The probability that the sample proportion will be within ±0.04 of the population proportion for n=100 is, P(p¯p±0.04)=P(0.26p¯0.34)

P(0.26p¯0.34)=P[0.26E(p¯)σp¯p¯E(p¯)σp¯0.34E(p¯)σp¯]=P(0.260.300.0458z0.340.300.0458)=P(0.87z0.87)=P(z0.87)P(z0.87)

For z=0.87:

From Table 1: Cumulative probabilities for the standard normal distribution,

  • Locate the value 0.8 in the first column.
  • Locate the value 0.07 in the first row corresponding to the value 0.8 in the first column.
  • The intersecting value of row and column is 0.8078.

For z=0.87:

From Table 1: Cumulative probabilities for the standard normal distribution,

  • Locate the value –0.8 in the first column.
  • Locate the value 0.07 in the first row corresponding to the value –0.8 in the first column.
  • The intersecting value of row and column is 0.1922.

P(0.26p¯0.34)=P(z0.87)P(z0.87)=0.80780.1922=0.6156

Thus, the probability that the sample proportion will be within ±0.04 of the population proportion for n=100 is 0.6156.

b.

Expert Solution
Check Mark
To determine

Find the probability that the a sample proportion will be within ±0.04 of the population proportion for n=200.

Answer to Problem 30E

The probability that the sample proportion will be within ±0.04 of the population proportion for n=200 is 0.7814.

Explanation of Solution

Calculation:

The standard deviation of p¯ is σp¯=p(1p)n.

Substitute p as 0.30 and n as 200 in the formula,

σp¯=p(1p)n=0.30(10.30)200=0.21200=0.00105

      =0.0324

Thus, the standard deviation of p¯ is 0.0324.

The probability that the sample proportion will be within ±0.04 of the population proportion for n=200 is, P(p¯p±0.04)=P(0.26p¯0.34)

P(0.26p¯0.34)=P[0.26E(p¯)σp¯p¯E(p¯)σp¯0.34E(p¯)σp¯]=P(0.260.300.0324z0.340.300.0324)=P(1.23z1.23)=P(z1.23)P(z1.23)

For z=1.23:

From Table 1: Cumulative probabilities for the standard normal distribution,

  • Locate the value 1.2 in the first column.
  • Locate the value 0.03 in the first row corresponding to the value 1.2 in the first column.
  • The intersecting value of row and column is 0.8907.

For z=1.23:

From Table 1: Cumulative probabilities for the standard normal distribution,

  • Locate the value –1.2 in the first column.
  • Locate the value 0.03 in the first row corresponding to the value –1.2 in the first column.
  • The intersecting value of row and column is 0.1093

P(0.26p¯0.34)=P(z1.23)P(z1.23)=0.89070.1093=0.7814

Thus, the probability that the sample proportion will be within ±0.04 of the population proportion for n=200 is 0.7814.

c.

Expert Solution
Check Mark
To determine

Find the probability that the a sample proportion will be within ±0.04 of the population proportion for n=500.

Answer to Problem 30E

The probability that the sample proportion will be within ±0.04 of the population proportion for n=500 is 0.9488.

Explanation of Solution

Calculation:

The standard deviation of p¯ is σp¯=p(1p)n.

Substitute p as 0.30 and n as 500 in the formula,

σp¯=p(1p)n=0.30(10.30)500=0.21500=0.00042

      =0.0205

Thus, the standard deviation of p¯ is 0.0205.

The probability that the sample proportion will be within ±0.04 of the population proportion for n=500 is, P(p¯p±0.04)=P(0.26p¯0.34)

P(0.26p¯0.34)=P[0.26E(p¯)σp¯p¯E(p¯)σp¯0.34E(p¯)σp¯]=P(0.260.300.0205z0.340.300.0205)=P(1.95z1.95)=P(z1.95)P(z1.95)

For z=1.95:

From Table 1: Cumulative probabilities for the standard normal distribution,

  • Locate the value 1.9 in the first column.
  • Locate the value 0.05 in the first row corresponding to the value 1.9 in the first column.
  • The intersecting value of row and column is 0.9744.

For z=1.95:

From Table 1: Cumulative probabilities for the standard normal distribution,

  • Locate the value –1.9 in the first column.
  • Locate the value 0.05 in the first row corresponding to the value –1.9 in the first column.
  • The intersecting value of row and column is 0.0256.

P(0.26p¯0.34)=P(z1.95)P(z1.95)=0.97440.0256=0.9488

Thus, the probability that the sample proportion will be within ±0.04 of the population proportion for n=500 is 0.9488.

d.

Expert Solution
Check Mark
To determine

Find the probability that the a sample proportion will be within ±0.04 of the population proportion for n=1,000.

Answer to Problem 30E

The probability that the sample proportion will be within ±0.04 of the population proportion for n=1,000 is 0.9942.

Explanation of Solution

Calculation:

The sample size is 1,000.

The standard deviation of p¯ is σp¯=p(1p)n.

Substitute p as 0.30 and n as 1,000 in the formula,

σp¯=p(1p)n.=0.30(10.30)1,000=0.211,000=0.00021

      =0.0145

Thus, the standard deviation of p¯ is 0.0145.

The probability that the sample proportion will be within ±0.04 of the population proportion for n=1,000 is, P(p¯p±0.04)=P(0.26p¯0.34)

P(0.26p¯0.34)=P[0.26E(p¯)σp¯p¯E(p¯)σp¯0.34E(p¯)σp¯]=P(0.260.300.0145z0.340.300.0145)=P(2.76z2.76)=P(z2.76)P(z2.76)

For z=2.76:

From Table 1: Cumulative probabilities for the standard normal distribution,

  • Locate the value 2.7 in the first column.
  • Locate the value 0.06 in the first row corresponding to the value 2.7 in the first column.
  • The intersecting value of row and column is 0.9971.

For z=2.76:

From Table 1: Cumulative probabilities for the standard normal distribution,

  • Locate the value –2.7 in the first column.
  • Locate the value 0.06 in the first row corresponding to the value –2.7 in the first column.
  • The intersecting value of row and column is 0.0029.

P(0.26p¯0.34)=P(z2.76)P(z2.76)=0.99710.0029=0.9942

Thus, the probability that the sample proportion will be within ±0.04 of the population proportion for n=1,000 is 0.9942.

e.

Expert Solution
Check Mark
To determine

Explain the advantage of a larger sample size.

Explanation of Solution

For larger sample size the probability becomes approximately 1.

There is higher chance that the probability would be within ±0.04 of the population proportion.

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Chapter 7 Solutions

Modern Business Statistics with Microsoft Office Excel (with XLSTAT Education Edition Printed Access Card) (MindTap Course List)

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