A recent survey at New York Univeristy found that 10% of students live in the dormitories. We've decided to select 100 NYU students for a study. What is the probability that the sample proportion of students living in the dormitories is greater than 0.07 (to 4 decimal places)?
Solution
Given that,
p = 0.10
1 - p = 1 - 0.10 = 0.90
n = 100
= p = 0.10
= [p( 1 - p ) / n] = [(0.10 * 0.90) / 100 ] = 0.03
P( > 0.07 ) = 1 - P( < 0.07 )
= 1 - P(( - ) / < (0.07 - 0.10) / 0.03)
= 1 - P(z < -1.00)
Using z table
= 1 - 0.1587
= 0.8413
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