TABLE 7-2
According to a survey, only 15% of customers who visited the website of a major retail store made a purchase. Random samples of size 50 are selected from a population of 900. Use the finite population correction factor.
-True or False: Referring to Table 7-2, the requirements for using a normal distribution to approximate a binomial distribution is fulfilled.

Question

Quizplus · Accepted Answer

The requirements for using a normal distribution to approximate a binomial distribution are that np and n(1-p) are both greater than or equal to 10. In this case, np = 50*0.15 = 7.5 and n(1-p) = 50*0.85 = 42.5, which are both less than 10. Therefore, we need to use the finite population correction factor, but the requirement for normal approximation is not fulfilled.

TABLE 7-2 According to a Survey, Only 15% of Customers Who Visited