A sample of 400 observations will be taken from an infinite population. The population proportion equals 0.8. Find the probability that the sample proportion will be greater than 0.74.
Solution
Given that,
= [p( 1 - p ) / n] = [(0.8 * 0.2) / 400 ] = 0.02
P( > 0.74) = 1 - P( < 0.74)
= 1 - P(( - ) / < (0.74 - 0.8) / 0.02)
= 1 - P(z < -3)
= 1 - 0.0013
= 0.9987
probability = 0.9987
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