Suppose we know the proportion of US residents that support the Purple Party is .30. You survey 100 residents and find that the estimated proportion that say they support the Purple Party is .2 . What is the probability of observing this proportion or less?
Solution
= [p ( 1 - p ) / n] = [(0.30 * 0.70) / 100 ] = 0.0458
P( 0.2) =
= P[( - ) / (0.2 - 0.3) / 0.0458]
= P(z -2.18)
= 0.0146
Probability = 0.0146
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