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 from their homes is
A) .000225
B) 0.25
C) .0455
D) .1667
E) .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 gives sqrt[(0.10*0.90)/400] = 0.015.

Insurance Company Records Indicate That 10% of Its Policyholders File