In: Statistics and Probability
A state insurance commission estimates that 20% of all motorists in its state are uninsured. Find the probability that in a random sample of 50 motorists, at least 8 will be uninsured.
= 8/50 =
0.16
p = 0.20, n = 50
To Find P( 0.16) =
1 - P(
<
0.16)
Z = ( - p) /
SE
SE = SQRT[p * (1 - p) / n] = SQRT[0.2 * 0.8 / 50] = 0.05657
Z = (0.16 - 0.20) / 0.05657 = -0.71
The probability for < 0.16 =
0.2389
Therefore P( > 0.16)
= 1 - 0.2389 = 0.7611