Fifty dash fiveFifty-five percent of households say they would feel secure if they had $50,000 in...
Fifty dash fiveFifty-five percent of households say they would feel secure if they had $50,000 in savings. You randomly select 88 households and ask them if they would feel secure if they had $50,000 in savings. Find the probability that the number that say they would feel secure is (a) exactly five, (b) more than five, and (c) at most five.
Homework Answers
Population proportion p = 0.55
Sampling distribution of Sampling proportion R is normal with mean = 0.55 and std.deviation = ( (0.55*(1-0.55))/88 ) ^ 0.5 = 0.053
(a) P ( R = 5/88 ) = 0 because point probabilities in continuous space is zero.
(b) P ( R > (5/88) ) = P ( Z > -9.3 ) = 1 ( approx)
(c) P ( R <= (5/88) ) = P ( Z <= -9.3 ) = 0 (approx )
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