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Question 8 Trinity 2010
A charity believes that 42% of all donors from the previous year will donate again in the current
year. A sample of 300 donors was taken.
a) What is the standard deviation of the sample proportion that will donate again?
b) What is the probability that more than half of these sample members will donate again?
c) Construct a 99% acceptance interval for the proportion of sample members that will donate
again
Suppose that the sample proportion of last years donors who donated again this year is . Do you
think the charity is correct to believe that 42% of all donors from last year will donate again?
Why (not)?
Solution
Given n=300, p=0.42
(a) The standard deviation=[p*(1-p)/n] = sqrt(0.42*(1-0.42)/300) =0.02849561
--------------------------------------------------------------------------------------------------------------
(b) The probability is
P(phat>0.5)
= P((phat-p)/[p*(1-p)/n] > (0.5-0.42)/sqrt(0.42*(1-0.42)/300))
=P(Z> 2.81)
= 0.0025 (check standard normal table)
--------------------------------------------------------------------------------------------------------------
(c) a=0.01, |Z(0.005)|=2.58 (check standard normal table)
So 99% CI is
p ± Z*[p*(1-p)/n]
--> 0.42 ±2.58*sqrt(0.42*(1-0.42)/300))
--> ( 0.3464813, 0.4935187)

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Question 8 Trinity 2010A charity believes that 42 of all donors f.pdf

  • 1. Question 8 Trinity 2010 A charity believes that 42% of all donors from the previous year will donate again in the current year. A sample of 300 donors was taken. a) What is the standard deviation of the sample proportion that will donate again? b) What is the probability that more than half of these sample members will donate again? c) Construct a 99% acceptance interval for the proportion of sample members that will donate again Suppose that the sample proportion of last years donors who donated again this year is . Do you think the charity is correct to believe that 42% of all donors from last year will donate again? Why (not)? Solution Given n=300, p=0.42 (a) The standard deviation=[p*(1-p)/n] = sqrt(0.42*(1-0.42)/300) =0.02849561 -------------------------------------------------------------------------------------------------------------- (b) The probability is P(phat>0.5) = P((phat-p)/[p*(1-p)/n] > (0.5-0.42)/sqrt(0.42*(1-0.42)/300)) =P(Z> 2.81) = 0.0025 (check standard normal table) -------------------------------------------------------------------------------------------------------------- (c) a=0.01, |Z(0.005)|=2.58 (check standard normal table) So 99% CI is p ± Z*[p*(1-p)/n] --> 0.42 ±2.58*sqrt(0.42*(1-0.42)/300)) --> ( 0.3464813, 0.4935187)