In: Statistics and Probability
Determine whether the normal sampling distribution can be used. The claim is p = 0.03 and the sample size is n = 100.
Solution
Given that,
p = 0.03
1 - p = 1 - 0.03 = 0.97
n = 100
The mean of the sampling distribution of proportion is ,
= p = 0.03
The standard error of the sampling distribution is ,
= p ( 1 - p ) / n
= (0.03 * 0.97) / 100 = 0.0171
= 0.0171