4. [7 marks] Crave is a large subscription-based internet streaming service for movies
and television shows. Suppose the proportion of Saskatchewanians who have a Crave
subscription is 0.15. Suppose the population of Rosetown, Saskatchewan is 2700 people. What is the probability that between 14% and 17% of people in Rosetown, Saskatchewan have a Crave subscription? Round your standard deviation to 4 decimal places.
Solution
Given that,
p = 0.15
1 - p = 1-0.15=0.85
n = 2700
= p =0.15
= [p ( 1 - p ) / n] = [(0.15*0.85) / 2700 ] = 0.0069
= P( 0.14 << 0.17)= P[(0.14-0.15) /0.00687 < ( - ) / < (0.17-0.15) / 0.0069]
= P( -1.46< z <3.71 )
= P(z < 3.71) - P(z < -1.46)
Using z table
=0.9992-0.0721
=0.9271
probability= 0.9271
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