In: Statistics and Probability
Suppose a simple random sample of size n=1000 is obtained from a population whose size is N=2,000,000 and whose population proportion with a specified characteristic is p = 0.22
a. What is the probability of obtaining x=250 or more individuals with the characteristic?
Given:
Let X denote the random variable with the specific characteristic.
Based on the given data,
Since, computing the exact probability for this large a sample is a tedious task, we may use a normal approximation.
For n = 1000 (large), using Central limit theorem which states that, for large n,
But the standard normal variate is continuous, while the binomial variable X is discrete; Before applying the central limit theorem, we need to apply the continuity correction, by expressing X as an interval, .i.e. X = 250 can be expressed as (249.5,250.5)
Since we are interested in greater than probability , we may use the upper limit of the interval for further computations.
Looking for the probability using standard normal table,
= 1 - 0.9901
= 0.0099
Hence, the probability of obtaining x=250 or more individuals with the characteristic is approximately 0.01 (negligible).
To find the exact probability,
Using excel,
Using the formula,
we get
And, the formula
gives P(X = 250) = 0.00229
Hence,
= 1 - [ ]
= 1 - [ 0.98925 - 0.00229 ]
= 0.01304
Hence, the probability of obtaining x=250 or more individuals with the characteristic is 0.01304.