Question

An insurance company wants to know the proportion of clients who have had claims within the last year. They randomly select 100 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. Can we create a confidence interval for the relevant parameter? Select one: O a. Yes. b. No, because it wasn't a random sample. c. No, because n(p-hat) < 10 or n(q-hat) < 10. O 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 A university officer wants to know the proportion of registered students that are living off-campus. He created an online survey and sent the link out across university email. He finds that 500 of the 1,300 respondents live off-campus. Select one: O 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. o

Answer 1

Answer - 1: np = 100*0.05 = 5 which is less than 10. Hence,

Option C is correct.

Answer - 2: This was a voluntary response sample so it is not random.

Option B is correct.