What is the probability of observing a sample proportion

Assignment Help Applied Statistics

Reference no: EM13910055

Suppose that we wish to assess whether more than 60 percent of all U.S. households in a particular income class bought life insurance last year. That is, we wish to assess whether p, the proportion of all U.S. households in the income class that bought life insurance last year, exceeds .60. Assume that an insurance survey is based on 1,000 randomly selected U.S. households in the income class and that 640 of these households bought life insurance last year.

a. Assuming that p equals .60 and the sample size is 1,000, what is the probability of observing a sample proportion that is at least .64?

b. Based on your answer in part a, do you think more than 60 percent of all U.S. households in the income class bought life insurance last year? Explain.

Text Book: Business Statics in Practice By BOWERMAN.

Reference no: EM13910055

Questions Cloud

Which of sales invoices should be included in random sample : Determine which 50 of the 977 sales invoices should be included in the random sample. Note: There are many possible answers to this exercise.

Change in temperature or amount of gas : A sample of hydrogen gas (H2) has a volume of 5.0 L and a pressure of 1.0 atm. What is the new pressure, in atmospheres, if its volume decreases to 2.0 L with no change in temperature or amount of gas?

Binding energy of the electron : An xray photon of wavelength 0.989 nm strikes a surface. The emitted electron has a kinetic energy of 969eV. What is the binding energy of the electron in kJ/mol?

Explain and critique the pecking-order theory : What signals are provided to investors when a company obtains debt financing? What signals are provided to investors when a company obtains equity financing?

What is the probability of observing a sample proportion : Assuming that p equals .60 and the sample size is 1,000, what is the probability of observing a sample proportion that is at least .64?

Normalize the following table : Normalize the following table upto and including the 3NF. Submit a 1 page printout of only the final set of normalized tables in Data Architect. Just use Data Architect to do the tables. No need for E-R, mapping, relationships etc. Just tables. State..

Describe the basic tenants of object-orientation : Write a function reduce($arr, $func) that takes an array and a function as a parameter. The reduce function should apply the parameter function to each element of the array in succession to produce a single result - Write a function modeMaker() tha..

What is the probability that the average fill for the drums : If we draw a random sample of 100 drums from the shipment, what is the probability that the average fill for the 100 drums is between 49.88 gallons and 50.12 gallons?

Inventory management : Inventory Management, What additional cost is the shop incurring by using this current order size rather than the economic order quantity?

User Account

All Pages