The first one where the newspaper claimed proportion comes in the middle of the graph ie exactly to the center could be the sampling distribution of proportion because the distribution is symmetrical about the point 0.75.
Hence this can be assumed to be normally distributed with mean 0.75 and standard error will be calculated below
The economist believes that the second graph could be the distribution of sampling proportion as the there is a shift to the higher side in the overall proportion of degree students seeking grants.
The economist suspects that the proportion of students receiving grants has increased so 215 students (215/265=0.81) receiving financial aid gives more support to his conjecture than 204 students among 265 which around 0.77
Given that the news paper claim is correct it means p =0.75
We will next find the standard deviation of proportion to find the probabilities which is given by
Assuming normal distribution for this sampling proportion, normal with mean .75( since newspapers claim is assumed to be correct) and standard deviation 0.0265
Probability of observing more than 204 students=Probability of observing a proportion more than 0.77
=P(p>0.77)
Probability of observing more than 215 students=Probability of observing a proportion more than 0.81
=P(p>0.81)
If the newspapers claim is believed to be correct probability of observing more than 215 students (1.18%) is even less than 2% that is negligible small which makes the economist conjecture wrong.
Sampling Distribution of the Sample Proportion According to a 2005 newspaper report about financi...