Use the Normal Approximation to the Binomial Distribution to compute the probability of passing a true/false test of 40 questions if the minimum passing grade is 60% and all responses are random guesses.
Answer)
N = 40
P = 0.5 (as there are two options and only one among those 2, will be correct so probability of getting a correct response is 1/2 = 0.5)
First we need to check the conditions of normality that is if n*p and n*(1-p) both are greater than 5 or not
N*p = 20
N*(1-p) = 20
Both the conditions are met so we can use standard normal z table to estimate the probability
z= (oberved p - claimed p)/standard error
Standard error = √{claimed p*(1-claimed p)/√n
Observed P = 0.6 (60%)
Claimed P = 0.5
N = 40
After substitution
Z = 1.26
From z table, P(z>1.26) = 0.1038
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