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American-made cars Nathan and Kyle both work for the Department of Motor Vehicles (DMV), but they live in different states. In Nathan’s state, 80%of the registered cars are made by American manufacturers. In Kyle’s state, only 60%of the registered cars are made by American manufacturers. Nathan selects a random sample of 100cars in his state and Kyle selects a random sample of 70cars in his state. Let pn-pkbe the difference (Nathan’s state – Kyle’s state) in the sample proportion of cars made by American manufacturers.

a. What is the shape of the sampling distribution of pn-pk? Why?

b. Find the mean of the sampling distribution.

c. Calculate and interpret the standard deviation of the sampling distribution.

Short Answer

Expert verified

Part(a) The shape is approximately normal.

Part(b) The mean is 0.20

Part(c) The standard deviation is 0.09586

Step by step solution

01

Part(a) Step 1 : Given information

We need to find shape of sampling distribution.

02

Part(a) Step 2 : Simplify

As given ,
n1=100n2=70p1=80%=0.80p2=60%=0.60
It is safe to assume that the sampling distribution of p^1-p^2 is approximately normal if,
n1p1≥10,n11-p1≥10,n2p2≥10,n21-p2≥10.
Thus, we have,
n1p1=100(0.80)=80n1(1-p1)=100(1-0.80)=100(0.20)=20n2p2=70(0.60)=42n2(1-p2)=70(1-0.60)=70(0.40)=28
All the conditions are met, which implies that the sampling distribution of p^1-p^2is approximately normal.

03

Part(b) Step 1 : Given information

We need to find mean of sampling distribution.

04

Part(b) Step 2 : Simplify

It is given in the question that:
n1=100n2=70p1=80%=0.80p2=60%=0.60
The mean of the sampling distribution of p^1-p^2 is the difference between the proportions:
μp1^-p2^=p1-p2=0.80-0.60=0.20
The mean is 0.20

05

Part(c) Step 1 : Given information

We need to find the standard deviation of the sampling distribution.

06

Part(c) Step 2 : Simplify

It is given in the question that:
n1=100n2=70p1=80%=0.80p2=60%=0.60

The mean of the sampling distribution of is the difference between the proportions:

μp1^-p2^=p1-p2=0.80-0.60=0.20

The standard deviation of p^1-p^2 is given by:
σp1^-p2^=p1(1-p1)n1+p2(1-p2)n2=0.80(1-0.80)100+0.60(1-0.60)70=0.09586
Thus, we conclude that the difference between Nathan's state and Kyle's state in the sample proportion of cars made by the American manufacturers varies on average by 0.09586from the mean difference 0.20.

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