If your income of $1500 increased by 15%, find the amount it has increased by
2 answers:
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Answer:
0.9606 = 96.06% probability that the proportion of politicians who are lawyers will differ from the total politicians proportion by less than 4%
Step-by-step explanation:
To solve this question, we need to understand the normal probability distribution and the central limit theorem.
Normal Probability Distribution
Problems of normal distributions can be solved using the z-score formula.
In a set with mean and standard deviation
, the z-score of a measure X is given by:
The Z-score measures how many standard deviations the measure is from the mean. After finding the Z-score, we look at the z-score table and find the p-value associated with this z-score. This p-value is the probability that the value of the measure is smaller than X, that is, the percentile of X. Subtracting 1 by the p-value, we get the probability that the value of the measure is greater than X.
Central Limit Theorem
The Central Limit Theorem establishes that, for a normally distributed random variable X, with mean and standard deviation
, the sampling distribution of the sample means with size n can be approximated to a normal distribution with mean
and standard deviation
.
For a skewed variable, the Central Limit Theorem can also be applied, as long as n is at least 30.
For a proportion p in a sample of size n, the sampling distribution of the sample proportion will be approximately normal with mean and standard deviation
Suppose 46% of politicians are lawyers.
This means that
Sample of size 662
This means that
Mean and standard deviation:
What is the probability that the proportion of politicians who are lawyers will differ from the total politicians proportion by less than 4%?
p-value of Z when X = 0.46 + 0.04 = 0.5 subtracted by the p-value of Z when X = 0.46 - 0.04 = 0.42. So
X = 0.5
By the Central Limit Theorem
has a p-value of 0.9803
X = 0.42
has a p-value of 0.0197
0.9803 - 0.0197 = 0.9606
0.9606 = 96.06% probability that the proportion of politicians who are lawyers will differ from the total politicians proportion by less than 4%