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Daniel S. Yates The Practice of Statistics Third Edition Chapter 9: 9.2 Sample Proportions Copyright © 2008 by W. H. Freeman & Company Essential Questions • How do you describe the sampling distribution of a sample proportion? (Shape, center and spread) • How do you compute the mean and standard deviation for the sampling distribution of ̂ ? • What is the rule of thumb for the use of the standard deviation of ̂ ? • What are the conditions that are necessary to use the Normal approximation to the sampling distribution of ̂ ? • How do you use the Normal approximation to the sampling distribution of ̂ to solve a probability problem involving ̂ ? Review from Chapter 8 • X is a random variable. It is the number of successes. • If X has a distribution of B(n, p), then X np and X np(1 p) • If we multiply each X by a constant has the effect of multiplying the means and the standard deviation by the constant. a bX a b X and a bX b X The Sampling Distribution of a Sample Proportion ̂ We want to estimate the proportion of success in the population. We take a SRS form the population of interest. The estimator in the sample proportion of successes: ̂ count of successes in sample X size of sample n Values of X and ˆ will vary in repeated samples. The count X is a random variable that follows the Binomial Distribution. ̂ is also a random variable but does not follow the Binomial Distributi on. The Mean and Standard Deviation of a Sample Proportion We start with the following facts: The definition of ˆ is X 1 X. n n The means and standard deviation of X is X n and X n (1 ) So, 1 n ˆ n ˆ 1 n 1 n 1 2 n n 1 n When to use the formula for the standard deviation of ̂ When to use the Normal Approximation for ̂ The Normal approximation is most accurate when ρ is close to ½ and is least accurate when ρ is near 0 or 1. The following rule of thumb will insure that Normal calculations are accurate for most statistical purposes; Example If the true proportion of defectives produced by a certain manufacturing process is 0.08 and a sample of 400 is chosen, what is the probability that the proportion of defectives in the sample is greater than 0.10? Since nρ 400(0.08) 32 > 10 and n(1-ρ) = 400(0.92) = 368 > 10, it’s reasonable to use the normal approximation. Example (continued) ˆ 0.08 ˆ (1 ) n 0.08(1 0.08) 0.013565 400 ˆ ˆ 0.10 0.08 Z 1.47 ˆ 0.013565 P(p > 0.1) P(z > 1.47) 1 0.9292 0.0708 Example Suppose 3% of the people contacted by phone are receptive to a certain sales pitch and buy your product. If your sales staff contacts 2000 people, what is the probability that more than 100 of the people contacted will purchase your product? Clearly ρ = 0.03 and ̂ = 100/2000 = 0.05 so 0.05 0.03 ^ P(p > 0.05) P z > (0.03)(0.97) 2000 0.05 0.03 P z > P(z > 5.24) 0 0.0038145 Example - continued If your sales staff contacts 2000 people, what is the probability that less than 50 of the people contacted will purchase your product? Now ρ = 0.03 and ̂ = 50/2000 = 0.025 so 0.025 0.03 ^ P(p 0.025) P z (0.03)(0.97) 2000 0.025 0.03 P z P(z 1.31) 0.0951 0.0038145 Classwork • Textbook p.589 problem 9.25 • P.590 problem 9.26.