Math Problem Statement

A Food Marketing Institute found that 35% of households spend more than $125 a week on groceries. Assume the population proportion is 0.35 and a simple random sample of 281 households is selected from the population. What is the probability that the sample proportion of households spending more than $125 a week is less than 0.32? Round the answer to 4 decimal places.

Solution

Let's solve the problem step-by-step.

Given Data:

  • Population proportion p=0.35p = 0.35
  • Sample size n=281n = 281
  • We are asked to find the probability that the sample proportion p^\hat{p} is less than 0.32.

Step 1: Standard Error of the Sample Proportion

The standard error (SE) for the sample proportion is given by:

SE=p(1p)nSE = \sqrt{\frac{p(1 - p)}{n}}

Substitute the values of pp and nn:

SE=0.35(10.35)281SE = \sqrt{\frac{0.35(1 - 0.35)}{281}}

Step 2: Z-Score Calculation

To find the probability, we first calculate the Z-score. The formula for the Z-score is:

Z=p^pSEZ = \frac{\hat{p} - p}{SE}

Where p^=0.32\hat{p} = 0.32 is the sample proportion. Substituting the values:

Z=0.320.35SEZ = \frac{0.32 - 0.35}{SE}

Step 3: Finding the Probability

Once we compute the Z-score, we can use the standard normal distribution table to find the probability corresponding to that Z-score.

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Math Problem Analysis

Mathematical Concepts

Probability
Statistics
Sampling Distribution
Proportions

Formulas

Standard Error: SE = sqrt((p(1 - p)) / n)
Z-Score: Z = (p̂ - p) / SE

Theorems

Central Limit Theorem
Normal Approximation for Proportions

Suitable Grade Level

Undergraduate - Statistics