Math Problem Statement

According to a survey in a country, 37% of adults do not own a credit card. Suppose a simple random sample of 500 adults is obtained. Complete parts (a) through (d) below.

Solution

Let's go through the problem step-by-step.

Problem Breakdown

  1. Given Information:

    • Population proportion p=0.37p = 0.37.
    • Sample size n=500n = 500.
  2. Objective:

    • To describe the sampling distribution of p^\hat{p} (the sample proportion).
    • To find the mean and standard deviation of the sampling distribution of p^\hat{p}.

Part (a) - Describe the Sampling Distribution of p^\hat{p}

For the sampling distribution of p^\hat{p} to be approximately normal, two conditions need to be met:

  • Condition 1: The sample size nn should be less than or equal to 5% of the population size, which is represented by n0.05Nn \leq 0.05N.
  • Condition 2: Both npnp and n(1p)n(1 - p) must be at least 10.

Verification:

  1. Condition 1: Since this is a survey of adults, the population NN (number of adults in the country) is likely large enough that n=5000.05Nn = 500 \leq 0.05N holds true.

  2. Condition 2:

    • Calculate npnp: np=500×0.37=185np = 500 \times 0.37 = 185
    • Calculate n(1p)n(1 - p): n(1p)=500×(10.37)=500×0.63=315n(1 - p) = 500 \times (1 - 0.37) = 500 \times 0.63 = 315

    Since both values (185 and 315) are greater than 10, this condition is also satisfied.

Therefore, the sampling distribution of p^\hat{p} is approximately normal, which matches option A.

Part (b) - Mean of the Sampling Distribution of p^\hat{p}

The mean of the sampling distribution of p^\hat{p}, denoted by μp^\mu_{\hat{p}}, is equal to the population proportion pp: μp^=p=0.37\mu_{\hat{p}} = p = 0.37

This answer is already provided as 0.37.

Part (c) - Standard Deviation of the Sampling Distribution of p^\hat{p}

The standard deviation of the sampling distribution of p^\hat{p}, denoted by σp^\sigma_{\hat{p}}, is calculated by the formula: σp^=p(1p)n\sigma_{\hat{p}} = \sqrt{\frac{p(1 - p)}{n}}

Substitute the values: σp^=0.37×0.63500=0.2331500\sigma_{\hat{p}} = \sqrt{\frac{0.37 \times 0.63}{500}} = \sqrt{\frac{0.2331}{500}}

Calculate this value: σp^0.00046620.0216\sigma_{\hat{p}} \approx \sqrt{0.0004662} \approx 0.0216

So, the standard deviation of p^\hat{p} is approximately 0.022 when rounded to three decimal places.


Summary of Answers

  • (a) Option A: Approximately normal because n0.05Nn \leq 0.05N and np10np \geq 10 and n(1p)10n(1 - p) \geq 10.
  • Mean (b): 0.370.37
  • Standard Deviation (c): 0.0220.022

Would you like more details or have any questions?

Related Questions:

  1. How would the sampling distribution change if the sample size were smaller?
  2. Why is the condition n0.05Nn \leq 0.05N important for the sampling distribution?
  3. What happens if npnp or n(1p)n(1 - p) are less than 10?
  4. How does increasing the sample size affect the standard deviation of p^\hat{p}?
  5. What would the mean and standard deviation be if pp changed to 0.5?

Tip:

Always check if the sample size and population proportion meet normality conditions before assuming the sampling distribution is approximately normal.

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Math Problem Analysis

Mathematical Concepts

Statistics
Sampling Distribution
Normal Distribution
Proportion

Formulas

Mean of the sampling distribution of p̂: μ_p̂ = p
Standard deviation of the sampling distribution of p̂: σ_p̂ = sqrt((p(1 - p)) / n)

Theorems

Central Limit Theorem

Suitable Grade Level

Grades 10-12