1. Send money. When they send out their fundraising letter, a philanthropic organization typically gets a return from about 5% of the people on their mailing list. To see what the response rate might be for future appeals, they did a simulation using samples of size 20, 50, 100, and 200. For each sample size, they simulated 1000 mailings with success rate p = 0.05 and constructed the histogram of the 1000 sample proportions, shown below. Explain how these histograms demonstrate what the Central Limit Theorem says about the sampling distribution model for sample proportions. Be sure to talk about shape, center, and spread.
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Textbook Solutions for Stats: Modeling The World
Question
41. Dice and dollars. You roll a die, winning nothing if thenumber of spots is odd, $1 for a 2 or a 4, and $10 for a 6.a) Find the expected value and standard deviation ofyour prospective winnings.b) You play twice. Find the mean and standard deviationof your total winnings.c) You play 40 times. Whats the probability that you winat least $100?
Solution
The first step in solving 18 problem number 41 trying to solve the problem we have to refer to the textbook question: 41. Dice and dollars. You roll a die, winning nothing if thenumber of spots is odd, $1 for a 2 or a 4, and $10 for a 6.a) Find the expected value and standard deviation ofyour prospective winnings.b) You play twice. Find the mean and standard deviationof your total winnings.c) You play 40 times. Whats the probability that you winat least $100?
From the textbook chapter Sampling Distribution Models you will find a few key concepts needed to solve this.
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