In a population of 1,000,000 people, 1000 have particular
disease. You are at a gathering of 200 random
people. Use a normal approximation to find the probability that at
least one person at the gathering
has the disease (use continuity correction)
Population proportion that people have the disease is =p = 1000/1000000 = 0.001
Our sample size is = n= 200
By normal approximation we have
Mean = n×p = 200×0.001 = 0.2
Variance=np(1-p) = 0.2 ×(1-0.001) =0.1998
Sd = 0.447
So we can take X is the number of people having the disease and X ~ Normal (0.2,0.1998)
Now we need to find,
By applying the continuity correlation for normal approximation we now calculate
=
=
=
=
= 1 - 0.7486 [From Z table]
= 0.2514
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