Questions: A recent study reported that 26% of the residents of a particular community lived in poverty. Suppose a random sample of 300 residents of this community is taken. We wish to determine the probability that 30% or more of our sample will be living in poverty. Complete parts (a) and (b) below.
a. Before doing any calculations, determine whether this probability is greater than 50% or less than 50%. Why?
A. The answer should be less than 50%, because 0.3 is greater than the population proportion of 0.26 and because the sampling distribution is approximately Normal.
B. The answer should be greater than 50%, because the resulting z-score will be positive and the sampling distribution is approximately Normal.
C. The answer should be greater than 50%, because 0.3 is greater than the population proportion of 0.26 and because the sampling distribution is approximately Normal.
D. The answer should be less than 50%, because the resulting z-score will be negative and the sampling distribution is approximately Normal.
Transcript text: A recent study reported that $26 \%$ of the residents of a particular community lived in poverty. Suppose a random sample of 300 residents of this community is taken. We wish to determine the probability that $30 \%$ or more of our sample will be living in poverty. Complete parts (a) and (b) below.
a. Before doing any calculations, determine whether this probability is greater than $50 \%$ or less than $50 \%$. Why?
A. The answer should be less than $50 \%$, because 0.3 is greater than the population proportion of 0.26 and because the sampling distribution is approximately Normal.
B. The answer should be greater than $50 \%$, because the resulting $z$-score will be positive and the sampling distribution is approximately Normal.
C. The answer should be greater than $50 \%$, because 0.3 is greater than the population proportion of 0.26 and because the sampling distribution is approximately Normal.
D. The answer should be less than $50 \%$, because the resulting $z$-score will be negative and the samolina distribution is aboroximately Normal.
Solution
Solution Steps
Step 1: Calculate the Z-Score
To determine the probability that \(30\%\) or more of the sample will be living in poverty, we first calculate the Z-score using the formula:
Since \(0.0571 < 0.5\), we conclude that the probability of observing \(30\%\) or more of the sample living in poverty is less than \(50\%\).
Final Answer
The answer is A. The answer should be less than \(50\%\), because \(0.3\) is greater than the population proportion of \(0.26\) and because the sampling distribution is approximately Normal.