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 ESQ: Referring to Table 7-2,the requirements for using a normal distribution to approximate a binomial distribution is fulfilled.

Question

Quizplus · Accepted Answer

Table 7-2 shows that the requirements for using a normal distribution approximation for a binomial distribution are fulfilled when 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. However, since the sample size is more than 5% of the population (50/900 = 0.056), the finite population correction factor should be applied. Nevertheless, the requirements for normal approximation are still met, so the answer is true.

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