In: Statistics and Probability
Suppose a random sample of 100 households were selected from a large city. if the true proportion of households in the city that owns at least one pet is 0.4, then what is the probability that at least 50% of the sample owns at least one pet?
a) 0.0207
b) 0.9793
c) 0.5793
d) 0.4207
e) 0.2578
Solution:
Given that,
n = 100
= 0.40
1 - = 1 - 0.40 = 0.60
So,
a ) = = 0.55
= ( 1 - ) / n
= 0.40 * 0.60 / 100
= 0.0490
= 0.0490
p ( > 0.50 )
= 1 - p ( < 0.50 )
= 1 - p ( - / ) < ( 0.50 - 0.40 / 0.0490 )
= 1 - p ( z < 0.10 / 0.0490 )
= 1 - p ( z < 2.04 )
Using z table
= 1 - 0.9793
= 0.0207
Probability = 0.0207
option a ) is correct.