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魅影直播

In debt? Refer to Exercise 100.

a. Justify why D can be approximated by a normal distribution.

b. Use a normal distribution to estimate the probability that 30or more adults in the sample have more debt than savings.

Short Answer

Expert verified
  1. The D is about regularly distributed
  2. The resultant probability is0.08

Step by step solution

01

Part (a) Step 1: Given Information

Given:

Adult population is (n)=100

The percentage of adults who owe more money than they saverole="math" localid="1653979441143" (p)=0.24

02

Part (a) Step 2: Check that D is generally distributed for a reason.

Consider,

np=100(0.24)=24>10n(1-p)=100(1-0.24)=76>10

Therefore, the D is about regularly distributed.

03

Part (b) Step 1: Given Information

Given:

Adult population isn=100

The percentage of adults who owe more money than they save(p)=0.24

04

Part (b) Step 2: calculate the likelihood that at least 30 persons in the sample have more debt than savings.

When 30 or more adults have more debt than savings, the likelihood is computed as follows:

P(X30)=PZ30-100(0.24)100(0.24)(1-0.24)=P(Z1.405)=1-0.920=0.08

As a result, a probability of 0.08 is necessary.

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