The Chamber of Commerce in a large Midwestern city has stated that 70 percent of all business owners in the city favor increasing the downtown parking fees. The city council has commissioned a random sample of n = 100 business owners. Of these, 63 said that they favor increasing the parking fees. What is the probability of 63 or fewer favoring the idea if the Chamber's claim is correct?
A) Approximately 0.0630
B) About 0.4370
C) Nearly 0.20
D) About 0.9370

Question

Quizplus · Accepted Answer

The probability of 63 or fewer favoring the idea can be calculated using a binomial distribution with n = 100 and p = 0.70. Using a normal approximation, the z-score is calculated, and the probability corresponding to this z-score is approximately 0.0630.

The Chamber of Commerce in a Large Midwestern City Has