Question

5. An oil company claims that 45% of the people buying gasoline in a particular city...

5. An oil company claims that 45% of the people buying gasoline in a particular city buy from their company. A random sample of 400 gasoline purchases in this city is collected. If the company’s claim is correct, find the probability that

a) More than 160, but at most 190 people in the sample purchased gasoline from this company.

b) Fewer than 200 people in the sample purchased gasoline from this company.

c) At least 150 people in the sample purchased gasoline from this company.

Homework Answers

Answer #1
n= 400 p= 0.4500
here mean of distribution=μ=np= 180.00
and standard deviation σ=sqrt(np(1-p))= 9.95
for normal distribution z score =(X-μ)/σx
therefore from normal approximation of binomial distribution and continuity correction:

a)

probability =P(160.5<X<190.5)=P((160.5-180)/9.95)<Z<(190.5-180)/9.95)=P(-1.96<Z<1.06)=0.8554-0.025=0.8304

b)

probability =P(X<199.5)=(Z<(199.5-180)/9.95)=P(Z<1.96)=0.9750

c)

probability =P(X>149.5)=P(Z>(149.5-180)/9.95)=P(Z>-3.07)=1-P(Z<-3.07)=1-0.0011=0.9989
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A fuel oil company claims that one-fifth of the homes in a certain city are heated...
A fuel oil company claims that one-fifth of the homes in a certain city are heated by oil. Do we have reason to believe that fewer than one-fifth are heated by oil if, in a random sample of 1000 homes in this city, 150 are heated by oil? Use a 0.05 level of significance.
The chief chemist for a major oil and gasoline production company claims that the regular unleaded...
The chief chemist for a major oil and gasoline production company claims that the regular unleaded gasoline produced by the company contains on average 4 ounces of a certain ingredient. The chemist further states that the distribution of this ingredient per gallon of regular unleaded gasoline is normal and has a standard deviation of 1.2 ounces. What is the probability of finding an average less than 3.85 ounces of this ingredient from 64 randomly inspected 1-gallon samples of regular unleaded...
More and more people are buying store brand products rather than national brand products. A coffee...
More and more people are buying store brand products rather than national brand products. A coffee company claims that 40% of their customers buy national brand coffee. A random sample of 700 people who buy coffee showed that 259 of them buy national brand coffee. Use a 1% level of significance to test the percentage of people who buy national brand coffee is different from 40%
Use the appropriate normal distribution to approximate the resulting binomial distributions. A convenience store owner claims...
Use the appropriate normal distribution to approximate the resulting binomial distributions. A convenience store owner claims that 55% of the people buying from her store, on a certain day of the week, buy coffee during their visit. A random sample of 35 customers is made. If the store owner's claim is correct, what is the probability that fewer than 20 customers in the sample buy coffee during their visit on that certain day of the week? a) 0.5675 b) 0.5319...
Use the appropriate normal distribution to approximate the resulting binomial distributions. A convenience store owner claims...
Use the appropriate normal distribution to approximate the resulting binomial distributions. A convenience store owner claims that 55% of the people buying from her store, on a certain day of the week, buy coffee during their visit. A random sample of 35 customers is made. If the store owner's claim is correct, what is the probability that fewer than 22 customers in the sample buy coffee during their visit on that certain day of the week? a) 0.7967 b) 0.7764...
Use the appropriate normal distribution to approximate the resulting binomial distributions. A convenience store owner claims...
Use the appropriate normal distribution to approximate the resulting binomial distributions. A convenience store owner claims that 55% of the people buying from her store, on a certain day of the week, buy coffee during their visit. A random sample of 35 customers is made. If the store owner's claim is correct, what is the probability that fewer than 20 customers in the sample buy coffee during their visit on that certain day of the week? a) 0.4681 b) 0.6293...
A company that produces cell phone batteries claims their new battery last more than 30 hours....
A company that produces cell phone batteries claims their new battery last more than 30 hours. To investigate this claim a consumer advocacy group collected the following random sample for number hours that each battery worked: 50, 40, 35, 25, 60, 45, 30, 50, 30, 10. Is there a sufficient evidence to accept the company’s claims using 0.01 significance level?
A company takes a sample of people in two sections of the city, the South Bronx...
A company takes a sample of people in two sections of the city, the South Bronx (SOBRO) and the North Bronx (NOBRO). The company believes that the north and south Bronx have the same cost per month of rent for a one bedroom. The company first takes a sample of 30 students from the south Bronx and a sample of 20 students from the North Bronx. They found that the students from the South Bronx pays an average of 2200...
3. Insurance company A claims that its customers pay less for car insurance, on average, than...
3. Insurance company A claims that its customers pay less for car insurance, on average, than customers of its competitor, Company B. You wonder if this is true, so you decide to compare the average monthly costs of similar insurance policy from the two companies. For a random sample of 9 people who buy insurance from company A, the mean cost is $152 per month with a sample standard deviation of $17. For 11 randomly selected customers of company B,...
A study conducted by the research department of a pharmaceutical company claims that the annual spending...
A study conducted by the research department of a pharmaceutical company claims that the annual spending (per person) for prescription drugs for allergy relief, μ1, is greater than or equal to the annual spending (per person) for non-prescription allergy relief medicine, μ2. A health insurance company conducted an independent study and collected data from a random sample of 200 individuals for prescription allergy relief medicine. The sample mean is found to be 17.5 dollars/year, with a sample standard deviation of...