If the supermarket manager (Exercise 7.77) samples n = 50

Chapter 7, Problem 78E

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QUESTION:

If the supermarket manager (Exercise 7.77) samples n = 50 customers and if the true fraction of customers who dislike the policy is approximately .9, find the probability that the sample fraction will be within .15 unit of the true fraction.

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QUESTION:

If the supermarket manager (Exercise 7.77) samples n = 50 customers and if the true fraction of customers who dislike the policy is approximately .9, find the probability that the sample fraction will be within .15 unit of the true fraction.

ANSWER:

Step 1 of 2

We have given n = 50, p = 0.9, and q = 0.1.

Let Y be the proportion of customers who dislike a new policy on cashing checks.

Hence from the exercise 7.77 we have given \(\left|\frac{Y}{n}-p\right| \leq 0.15\).

We need to find \(P\left(\left|\frac{Y}{n}-p\right| \leq 0.15\right)\).

For large n > 20 and p not too near 0 or 1 (say 0.05 < p < 0.95) the distribution approximately follows the normal distribution.

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