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Cable TV subscriptions and 鈥渃ord cutters.鈥 According to a recent Pew Research Center Survey (December 2015), 15% of U.S. adults admitted they are 鈥渃ord cutters,鈥 i.e., they canceled the cable/satellite TV service they once subscribed to. (See Exercise 2.4, p. 72) In a random sample of 500 U.S. adults, let pn represent the proportion who are 鈥渃ord cutters.鈥

a. Find the mean of the sampling distribution of p^.

b. Find the standard deviation of the sampling distribution of p^.

c. What does the Central Limit Theorem say about the shape of the sampling distribution of p^?

d. Compute the probability that p^is less than .12.

e. Compute the probability that p^is greater than .10.

Short Answer

Expert verified

a. The mean of the sampling distribution of p^is Ep^=0.15.

b. The standard deviation of the sampling distribution of p^is 0.0160.

c. The shape of the sampling distribution of the sample proportion is approximately symmetric (normal).

d. The probability that p^is less than 0.12 is 0.0301.

e. The probability that p^is greater than 0.12 is 0.9991.

Step by step solution

01

Given information

The proportion of all U.S. adults admitted that they are 鈥渃ord cutters鈥 is p=0.15.

A random sample of sizen=500 is selected.

Letp^ represents the sample proportion of adults who admitted that they are 鈥渃ord cutters.鈥

02

Computing the mean of the sample proportion

a

The mean of the sampling distribution ofp^ is obtained as:

Ep^=p=0.15.

SinceEp^=p.

Therefore,Ep^=0.15 .

03

Computing the standard deviation of the sample proportion

b.

The standard deviation of the sampling distribution ofp^ is obtained as:

p^=p1-pn=0.150.85500=0.1275500=0.000255=0.01596..

Therefore,p^=0.0160 .

04

Determining the shape of the sampling distribution

c.

Here,

np^=5000.15=75>15,

and

n1-p^=5000.85=425>15.

The conditions to use Central Limit Theorem are satisfied. According to the Central Limit Theorem, the shape of the sampling distribution of the sample proportion is approximately symmetric (normal).

05

Computing the probability that sample proportion is less than 0.12

d.

The probability that p^is less than 0.12 is obtained as:

Pp^<0.12=Pp^-pp^<0.12-pp^=PZ<0.12-0.150.0160=PZ<-0.030.0160=PZ<-1.875=PZ<-1.88=0.0301.

To find the probability z-table is used; the value at the intersection of -1.80 and 0.08 is the required probability.

Hence, the required probability is 0.0301.

06

Finding the probability that sample proportion is greater than 0.10

e.

The probability thatp^ is greater than 0.12 is obtained as:

Pp^>0.10=Pp^-pp^>0.10-pp^=PZ>0.10-0.150.0160=PZ>-0.050.0160=PZ>-3.125=1-PZ-3.13=1-0.0009=0.9991.

To find the probability z-table is used, the value at the intersection of -3.10 and 0.03 is the probability of the z-score less than or equal to -3.13.

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