Math Problem Statement

About 5% of employed adults in the United States held multiple jobs. A random sample of 75 employed adults is chosen. Find the probability that less than 6.5% of the individuals in the sample hold multiple jobs and answer additional questions related to probability and normal approximation.

Solution

Let's analyze each part of this exercise one by one.

Part (a)

The question asks if it is appropriate to use the normal approximation to find the probability that less than 6.5% of the sample holds multiple jobs, given n=75n = 75 and p=0.05p = 0.05. The rule of thumb for using a normal approximation is if both np10np \geq 10 and n(1p)10n(1 - p) \geq 10.

For this problem:

  1. np=75×0.05=3.75np = 75 \times 0.05 = 3.75, which is less than 10.
  2. n(1p)=75×0.95=71.25n(1 - p) = 75 \times 0.95 = 71.25, which is greater than 10.

Since np<10np < 10, it is not appropriate to use the normal approximation.

Part (b)

For this part, we use a sample size of n=350n = 350 and need to find the probability that less than 6.5% of this sample holds multiple jobs.

Now, since np=350×0.05=17.5np = 350 \times 0.05 = 17.5 and n(1p)=350×0.95=332.5n(1 - p) = 350 \times 0.95 = 332.5, both conditions are met to use the normal approximation. We can now find the probability that p^<0.065\hat{p} < 0.065 using the normal approximation with:

  • Mean μ=p=0.05\mu = p = 0.05
  • Standard deviation σ=p(1p)n\sigma = \sqrt{\frac{p(1 - p)}{n}}

Substitute these values and calculate the Z-score for 0.065, then find the corresponding probability.

Part (c)

This part asks for the probability that more than 6% of the sample of 350 holds multiple jobs. Using the same normal approximation as in part (b), calculate the probability p^>0.06\hat{p} > 0.06.

Part (d)

We are tasked with finding the probability that the proportion of individuals in the sample of 350 who hold multiple jobs is between 0.05 and 0.10. Using the normal distribution calculated in parts (b) and (c), find the probabilities for both 0.05 and 0.10, then take the difference between them.

Part (e)

This part asks if it would be unusual for less than 4% of the sample of 350 to hold multiple jobs. This can be evaluated by calculating the probability p^<0.04\hat{p} < 0.04. If this probability is very low (typically less than 0.05), it would be considered unusual.

Let me know if you'd like detailed calculations or further explanations on any of these parts.


Additional Questions:

  1. How would the solution differ if the sample size was changed to 150 instead of 75 or 350?
  2. What impact does increasing the population proportion (e.g., from 5% to 10%) have on the appropriateness of the normal approximation?
  3. How would you calculate the probability of a range if the normal approximation was not valid?
  4. Why is the normal approximation preferred in cases with large sample sizes?
  5. How does changing the percentage threshold (like from 6% to 8%) affect the probability in part (c)?

Tip:

When using the normal approximation, always verify the conditions np10np \geq 10 and n(1p)10n(1 - p) \geq 10 to ensure accurate results.

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Math Problem Analysis

Mathematical Concepts

Probability
Normal Approximation
Sample Proportion
Binomial Distribution

Formulas

Normal approximation conditions: np >= 10 and n(1 - p) >= 10
Mean of sample proportion: μ = p
Standard deviation of sample proportion: σ = sqrt(p(1 - p) / n)
Z-score formula: Z = (X - μ) / σ

Theorems

Central Limit Theorem
Normal Approximation to the Binomial Distribution

Suitable Grade Level

College level or AP Statistics