MindTap Business Statistics, 1 term (6 months) Printed Access Card for Anderson/Sweeney/Williams/Camm/Cochran's Essentials of Statistics for Business and Economics, 8th
MindTap Business Statistics, 1 term (6 months) Printed Access Card for Anderson/Sweeney/Williams/Camm/Cochran's Essentials of Statistics for Business and Economics, 8th
8th Edition
ISBN: 9781337114288
Author: Anderson, David R.; Sweeney, Dennis J.; Williams, Thomas A.; Camm, Jeffrey D.; Cochran, James J.
Publisher: Cengage Learning
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Textbook Question
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Chapter 7.6, Problem 34E

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 34E

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 34E

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 34E

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 34E

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

MindTap Business Statistics, 1 term (6 months) Printed Access Card for Anderson/Sweeney/Williams/Camm/Cochran's Essentials of Statistics for Business and Economics, 8th

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