According to a study conducted in one city, 3131% of adults in the city have cre

Question

According to a study conducted in one city, 3131% of adults in the city have credit card debts of more than $2000. A simple random sample of n equals 150n=150 adults is obtained from the city. Describe the sampling distribution of ^p the sample proportion of adults who have credit card debts of more than $2000. Round to three decimal places when necessary.

A. Exactly normal; mu Subscript ppequals=0.310.31, sigma Subscript ppequals=0.0380.038

B. Approximately normal; mu Subscript ppequals=0.310.31, sigma Subscript ppequals=0.0010.001

C. Binomial; mu Subscript ppequals=46.546.5, sigma Subscript ppequals=5.6645.664

D. Approximately normal; mu Subscript ppequals=0.310.31, sigma Subscript ppequals=0.0380.038

Explanation / Answer

as np>10 and n(1-p)>10 ; therefore sampling distribution will be approximately normal

with mean phat =0.31 and std error =(p(1-p)/n)1/2 =0.038

option D is correct,

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.