Sampling Distribution for Proportions

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Presentation transcript:

Sampling Distribution for Proportions Based on Binomial ……

Properties of Sampling Distributions for Sample Proportions  

Formulas Needed for Proportions…..

Example…… Based on past experience, a bank believes that 7% of the people who receive loans will not make payments on time. The bank has recently approved 200 loans. What is the probability that over 10% of these clients will not make timely payments?

Answer…… You are finding Shade the normal distribution curve

Example…… Based on past experience, the government found that 8% of the people default on their student loans. The school approved 190 loans. Find the probability that more than 10% will default.

Answer…… Find Shade the curve to the right with an area of 10% or .1000.

Example…… We expect to sell about 500 tickets to the game and we think that 20% will be children’s tickets. What is the probability that less than 15% are children?

Answer…… Find Shade the area of .15 to the left of the distribution.