In: Statistics and Probability
Solution Q 3
Back-up Theory
If p = population proportion and phat = sample proportion based on a sample of size n, then
Mean of phat = p .............................................................................................................................. (1)
Standard deviation of phat = √{p(1 - p)/n}.......................................................................................... (2)
If X ~ B(n, p). i.e., X has Binomial Distribution with parameters n and p, where
n = number of trials and p = probability of one success, then,
probability mass function (pmf) of X is given by p(x) = P(X = x) = (nCx)(px)(1 - p)n – x.......…….…..(3)
[This probability can also be directly obtained using Excel Function: Statistical, BINOMDIST] ..….(3a)
If X ~ B(n, p), np ≥ 10 and np(1 - p) ≥ 10, then Binomial probability can be approximated by
Standard Normal probabilities by Z = (X – np)/√{np(1 - p)} ~ N(0, 1) …....................……....………..(4)
Or, equivalently, Z = (phat – p)/√{p(1 - p)/p} ~ N(0, 1) ………………........................................……..(4a)
If a random variable X ~ N(µ, σ2), i.e., X has Normal Distribution with mean µ and variance σ2,
then, Z = (X - µ)/σ ~ N(0, 1), i.e., Standard Normal Distribution and hence
P(X ≤ or ≥ t) = P[{(X - µ)/σ} ≤ or ≥ {(t - µ)/σ}] = P[Z ≤ or ≥ {(t - µ)/σ}] .…………….....................…...…(5)
Probability values for N(0, 1) can be directly read off from Standard Normal Tables….......……...... (5a)
or can be found using Excel Function: Statistical, NORMSDIST(z) which gives P(Z ≤ z) ….............(5b)
Now to work out the solution,
In the given scenario, p = 0.35 [i.e., 35%] ........................................................................................ (6)
Part (a)
Vide (1) and (6),
Mean of the sample proportion of people approving the government = 0.35 Answer 1
Vide (2) and (6),
Standard error of the sample proportion of people approving the government
= √{0.35 x 0.65/n}
= √{0.35 x 0.65/400}, taking n = 400
= 0.0238 Answer 2
Part (b)
Vide (4a), sampling distribution of sample proportion is: N(0, 1) Answer 3
Vide (4),
The assumptions are: np ≥ 10 and np(1 - p) ≥ 10. Answer 4
[In the given scenario, n = 400 and p = 0.35 and so np = 140 > 10 and np(1 - p) = 91 > 10]
Part (c)
Let X = number of people out of the 400 who replied ‘yes’ to the question. Then,
X ~ B(400, 0.35) ……………………………………………………………...........................…………….. (7)
So, probability that at least 150 out of the 400 replied ‘yes’
= P(X ≥ 150)
= P[Z ≥ {(150 - 140)/√91}]
[vide (5) and noting that vide Answers (3) and (4) Normal approximation is possible]
= P(Z ≥ 1.0482)
= 0.1473 [vide (5b)] Answer 5
Part (d)
‘If a different similar random sample is taken, it will have a sample proportion less than 0.32’
is equivalent to saying X < 400 x 0.32 = 128.
So, as in Part (c), the required probability
= P(X < 128)
= P[Z < {(128 - 140)/√91}]
= P(Z < - 1.2579)
= 0.1042 [vide (5b)]
Answer 6
DONE