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91Ó°ÊÓ

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. \(n=400\) and \(\hat{p}=.65\) d. \(n=75 \quad\) and \(\quad \hat{p}=.06\)

Short Answer

Expert verified
a. Yes, the sample size is large enough as the criteria \(np\) and \(n(1-p)\) are both greater than or equal to 10. b. No, the sample size is not large enough as the criteria \(np\) is less than 10. c. Yes, the sample size is large enough as the criteria \(np\) and \(n(1-p)\) are both greater than or equal to 10. d. No, the sample size is not large enough as the criteria \(np\) is less than 10.

Step by step solution

01

Case a: Check Criteria

For this case, \(n=50\) and \(\hat{p}=.25\). To check the criteria, multiple \(n\) and \(\hat{p}\), and \(n\) and \((1-\hat{p})\), then compare the results with 10. Check if both are greater than or equal to 10.
02

Case b: Check Criteria

For this case, \(n=160\) and \(\hat{p}=.03\). Follow the same steps as in case a, comparing the results to 10.
03

Case c: Check Criteria

For this case, \(n=400\) and \(\hat{p}=.65\). Follow the same steps as in case a, comparing the results to 10.
04

Case d: Check Criteria

For this case, \(n=75\) and \(\hat{p}=.06\). Follow the same steps as in case a, comparing the results to 10.

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Key Concepts

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

Normal Distribution
The normal distribution is a key concept in statistics. It's a probability distribution often called a "bell curve" because of its shape.
This distribution is symmetric around its mean, which means that most of the data points cluster around the center but tapers off equally on both sides.
In many statistical analyses, the normal distribution is used to make inferences about a population based on sample data.
It's particularly useful because of the Central Limit Theorem, which states that the distribution of sample means approximates a normal distribution as the sample size becomes larger.
For constructing confidence intervals around population proportions, the normal distribution can only be used if certain conditions are met.
Specifically, one must ensure that the sample data satisfies the criteria for normal approximation based on the sample size and proportion.
This involves making sure that both the expected number of successes and failures are greater than or equal to 10.
Sample Size
Sample size is crucial in statistical analysis, particularly when determining whether the distribution of a sample mean can be approximated by a normal distribution.
In general, larger sample sizes allow for more reliable inferences about the population from which the sample is drawn.
For confidence intervals related to a population proportion, the sample size affects the accuracy of the interval. The rule of thumb for using the normal approximation is that both:
  • The product of the sample size ( ) and the sample proportion ( ) should be at least 10.
  • The product of the sample size ( ) and 1 minus the sample proportion ( ) should also be at least 10.
This ensures enough counts of both the attribute of interest and the lack thereof to justify the use of the normal distribution for approximation.
If these criteria are not satisfied, the normal approximation should not be used, and other methods, such as exact binomial methods, might be more appropriate.
Proportion Estimate
The proportion estimate ( ) is a critical element when constructing confidence intervals for population proportions.
It's simply the ratio of the number of times an event of interest occurs to the total number of observations in the sample.
For example, if out of a sample of 100 people, 25 have blue eyes, the proportion estimate ( ) of people with blue eyes in the sample is 0.25.
When calculating confidence intervals for this estimate, it's important to consider both the proportion and the sample size.
The confidence interval provides a range of plausible values for the population proportion, giving insight into the likely true proportion within the entire population. For the normal approximation to be applicable, as mentioned earlier, both the counts of successes ( ) and failures ( ) in the sample must meet the required criteria.
Otherwise, the confidence interval may not accurately reflect the true population proportion.
Statistical Criteria
In constructing confidence intervals, statistical criteria ensure that the assumptions of the analysis method are met.
Specifically for methods relying on a normal distribution approximation, a major criterion is that the sample data must be sufficient in size and proportion.
The key statistical criteria for using the normal distribution to approximate binomial data include:
  • The expected number of successes (i.e., ) must be at least 10.
  • The expected number of failures (i.e., ) must also be at least 10.
These criteria are stemmed from ensuring the sample size is adequate such that a normal approximation is justified.
If these are not met, the normal distribution may not correctly represent the data, leading to unreliable statistical conclusions.
In such cases, alternative statistical methods should be considered to achieve more accurate results.

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Most popular questions from this chapter

A drug that provides relief from headaches was tried on 18 randomly selected patients. The experiment showed that the mean time to get relief from headaches for these patients after taking this drug was 24 minutes with a standard deviation of \(4.5\) minutes. Assuming that the time taken to get relief from a headache after taking this drug is (approximately) normally distributed, determine a \(95 \%\) confidence interval for the mean relief time for this drug for all patients.

A sample of 20 managers was taken, and they were asked whether or not they usually take work home. The responses of these managers are given below, where yes indicates they usually take work home and no means they do not. \(\begin{array}{lllllllll}\text { Yes } & \text { Yes } & \text { No } & \text { No } & \text { No } & \text { Yes } & \text { No } & \text { No } & \text { No } & \text { No } \\ \text { Yes } & \text { Yes } & \text { No } & \text { Yes } & \text { Yes } & \text { No } & \text { No } & \text { No } & \text { No } & \text { Yes }\end{array}\) Make a \(99 \%\) confidence interval for the percentage of all managers who take work home.

What assumptions must hold true to use the \(t\) distribution to make a confidence interval for \(\mu\) ?

A bank manager wants to know the mean amount of mortgage paid per month by homeowners in an area. A random sample of 120 homeowners selected from this area showed that they pay an average of \(\$ 1575\) per month for their mortgages. The population standard deviation of such mortgages is \(\$ 215\). a. Find a \(97 \%\) confidence interval for the mean amount of mortgage paid per month by all homeowners in this area. b. Suppose the confidence interval obtained in part a is too wide. How can the width of this interval be reduced? Discuss all possible alternatives. Which alternative is the best?

At the end of Section \(8.2\), we noted that we always round up when calculating the minimum sample size for a confidence interval for \(\mu\) with a specified margin of error and confidence level. Using the formula for the margin of error, explain why we must always round up in this situation.

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