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.