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Check if the sample size is large enough to use the normal distribution to make a confidence interval for \(p\) for each of the following cases a. \(n=50\) and \(\hat{p}=.25\) b. \(n=160\) and \(\hat{p}=.03\) c. \(n=400 \quad\) and \(\hat{p}=.65 \quad\) d. \(n=75 \quad\) and \(\hat{p}=.06\)

Short Answer

Expert verified
a. Yes, the sample size is large enough. b. No, the sample size is not large enough. c. Yes, the sample size is large enough. d. No, the sample size is not large enough.

Step by step solution

01

Setup Criterion

Both \(np\) and \(n(1-p)\) should be greater than or equal to 5 to consider the sample size is large enough.
02

Case a

Substitute given values in the criterion; \(n=50\), \(\hat{p}=.25\). Now, \(np=50*.25=12.5\) and \(n(1-p)=50*(1-.25)=37.5\). Both values are greater than 5, so the sample size is large enough to use the normal distribution.
03

Case b

Substitute given values in the criterion; \(n=160\), \(\hat{p}=.03\). Now, \(np=160*.03=4.8\) and \(n(1-p)=160*(1-.03)=155.2\). Here \(np<5\), so the sample size is not large enough to use the normal distribution.
04

Case c

Substitute given values in the criterion; \(n=400\), \(\hat{p}=.65\). Now, \(np=400*.65=260\) and \(n(1-p)=400*(1-.65)=140\). Both values are greater than 5, so the sample size is large enough to use the normal distribution.
05

Case d

Substitute given values in the criterion; \(n=75\), \(\hat{p}=.06\). Now, \(np=75*.06=4.5\) and \(n(1-p)=75*(1-.06)=70.5\). Here \(np<5\), so the sample size is not large enough to use the normal distribution.

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Confidence Interval
When estimating a population parameter, statisticians often use a confidence interval. The confidence interval provides a range of values which is likely to contain the population parameter, such as a proportion, with a specified level of confidence. This level is denoted as a percentage, commonly 95% or 99%, indicating how certain we are about the interval capturing the true parameter.

For example, if you calculate a 95% confidence interval for a proportion, you can say there's a 95% chance that the interval contains the true population proportion. It reflects the precision of your estimate and is directly related to sample size and variability. A larger sample size or smaller variability will lead to narrower confidence intervals, providing more precise estimates.
Proportion
A proportion represents a part of the whole; it's often expressed as a fraction or percentage. In statistics, when we talk about sample proportions, we refer to the ratio of a certain outcome in our sample to the total number of observations.

For instance, if you sampled 200 people to find out how many prefer tea over coffee, and 80 said they do, the sample proportion (\(\hat{p}\)) would be 80/200 = 0.4 or 40%. Understanding sample proportions helps in estimating population proportions and calculating confidence intervals.
Criteria for Large Sample Size
The criterion for determining if a sample size is large enough to apply the normal distribution to a confidence interval involves both the sample size (\(n\)) and the sample proportion (\(\hat{p}\)).

For a sample to be considered large, both the product of the sample size and the sample proportion, \(np\), and the product of the sample size with one minus the sample proportion, \(n(1-p)\), should be greater than or equal to 5. This criterion ensures that the sampling distribution of the proportion is roughly normal, as required for further calculations like constructing a confidence interval.

For example, if \(n = 50\) and \(\hat{p}\) = 0.25, then \(np = 50 \times 0.25 = 12.5\) and \(n(1-p) = 50 \times 0.75 = 37.5\). Since both numbers exceed 5, the sample size is adequate to use the normal approximation.
Normal Distribution Applicability
The normal distribution, often denoted by its bell curve appearance, is widely used in statistics due to its properties and the Central Limit Theorem. This theorem suggests that, given a sufficiently large sample size, the distribution of the sample mean or proportion will tend to be normal, regardless of the original data distribution.

In the context of sample proportions, applying the normal distribution helps calculate confidence intervals and hypothesis testing. However, not every situation allows for such an application. Assessing sample size using the criterion \(np\) and \(n(1-p)\) ensures that our data is suited to management using the normal model. This step is crucial to making valid inferences about population parameters from sample statistics.

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Most popular questions from this chapter

A sample selected from a population gave a sample proportion equal to .31. a. Make a \(95 \%\) confidence interval for \(p\) assuming \(n=1200\). b. Construct a \(95 \%\) confidence interval for \(p\) assuming \(n=500\). c. Make a \(95 \%\) confidence interval for \(p\) assuming \(n=80\). d. Does the width of the confidence intervals constructed in parts a through \(c\) increase as the sample size decreases? If yes, explain why.

a. How large a sample should be selected so that the margin of error of estimate for a \(99 \%\) confidence interval for \(p\) is \(.035\) when the value of the sample proportion obtained from a preliminary sample is \(.29\) ? b. Find the most conservative sample size that will produce the margin of error for a \(99 \%\) confidence interval for \(p\) equal to \(.035\).

A sample of 1500 homes sold recently in a state gave the mean price of homes equal to \(\$ 299,720\). The population standard deviation of the prices of homes in this state is \(\$ 68,650\). Construct a \(99 \%\) confidence interval for the mean price of all homes in this state.

a. How large a sample should be selected so that the margin of error of estimate for a \(98 \%\) confidence interval for \(p\) is \(.045\) when the value of the sample proportion obtained from a preliminary sample is \(.53\) ? b. Find the most conservative sample size that will produce the margin of error for a \(98 \%\) confidence interval for \(p\) equal to \(.045\).

You are working for a supermarket. The manager has asked you to estimate the mean time taken by a cashier to serve customers at this supermarket. Briefly explain how you will conduct this study. Collect data on the time taken by any supermarket cashier to serve 40 customers. Then estimate the population mean. Choose your own confidence level.

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