Question

is it appropriate to use a normal distribution to approximate a confidence interval for the population proportion? If it’s inappropriate, indicate why.

An insurance company wants to know the proportion of clients who have had claims within the last year. They randomly select 1000 clients from a database of all clients and checks their basic information. They find that 5% of the clients had claims within the last year.

Select one:

a. Yes.

b. No, because it wasn't a random sample.

c. No, because n(p-hat) < 10 or n(q-hat) < 10.

d. No, because the sample size wasn’t at least 30 and the population wasn’t normally distributed.

e. No, because we already know the population proportion

Answer 1