In: Statistics and Probability
Binomial experiments are listed. Decide whether you can use the normal distribution to approximate x with a normal distribution. If you can, find the mean and standard deviation. If you cannot, explain why (or show your work to why not). Part A Five percent of adults in the United States are planning to purchase a 3D television in the next two years. You randomly select 125 adults in the United States and ask them if they are planning to purchase a 3D television in the next two years. Part B A survey of US adults found that 15% read every work of a contract for buying or selling a home before signing. You randomly select 25 adults and ask them if they read every word when buying or selling a home before signing.
Answer: Part A Five percent of adults in the United States are planning to purchase a 3D television in the next two years. You randomly select 125 adults in the United States and ask them if they are planning to purchase a 3D television in the next two years.
Solution:
p = 5% = 0.05
n = 125
mean = np
= 125 x 0.05
= 6.25
Standard deviation = √npq
= √125*0.05*0.95
= 2.4367
Therefore,
Yes. Normal approximation can be used because, n is fixed, sample is random and independent, np > 5.
Answer Part B A survey of US adults found that 15% read every work of a contract for buying or selling a home before signing. You randomly select 25 adults and ask them if they read every word when buying or selling a home before signing.
Solution:
p = 15% = 0.15
n = 25
mean = np
= 25 * 0.15
= 3.75
Standard deviation = √npq
= √25 * 0.15 * 0.85
= 1.7854
Therefore,
No, Normal approximation cannot be used because, n is fixed, sample is random and independent, np < 5.