Sample size = n = 716
p = Proportion of residents having red hair = 16.98% = 0.1698
Since, n* p > 10 and n*(1-p) > 10, we can assume the sampling distribution of proportion to be approximately normal with
Mean = p = 0.1698
Standard deviation =
So,
Converting normal variate p into standard normal variate z,
It can be obtained using the z table by finding the area corresponding to the z = -0.8 at 0.02 probability.
= 0.2061
Hence, option (b) is the correct option.
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