Use the following to answer the question(s) below.
Insurance company records indicate that 10% of its policyholders file claims involving theft or robbery of personal property from their homes. Suppose a random sample of 400 policyholders is selected.
-The standard deviation of the sampling distribution of the sample proportion of policyholders filing claims involving theft or robbery of personal property from their homes is
A) 0.000225.
B) 0.25.
C) 0.0455.
D) 0.1667.
E) 0.015.

Question

Quizplus · Accepted Answer

The standard deviation of the sampling distribution of the sample proportion is calculated using the formula: sqrt[(p(1-p))/n], where p is the population proportion (0.10) and n is the sample size (400). This results in sqrt[(0.10*0.90)/400] = 0.015.

Use the Following to Answer the Question(s) Below