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The president of Doerman Distributors, Inc., believes that 26% of the firm's orders come from first-time customers. A simple random sample of 100 orders will be used to estimate the proportion of first-time customers. Use z-table.
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Given that, population proportion (p) = 0.26 and
sample size (n) = 100
a) np = 100 * 0.26 = 26 and n(1-p) = 100 * (1 - 0.26) = 74
Therefore, sampling distribution of sample proportion is approximately normal because np and n(1-p) are both greater than 5.
b) We want to find,
Therefore, required probability is 0.9986
c) We want to find,
Therefore, required probability is 0.9596
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