Question

The Fortune 500 is comprised of Fortune magazine's annual list of the finite population of the top 500 companies in the U.S. ranked by revenues. According to Catalyst, 16% of positions on corporate boards at Fortune 500 companies were held by women in 2018. A random sample of 100 Fortune 500 companies was selected. The standard error of the proportion is ________.

Answer 1

Answer:

The standard error of the proportion is 0.0367.

Step-by-step explanation:

The Central Limit Theorem estabilishes that, for a normally distributed random variable X, with mean $\mu$ and standard deviation $\sigma$, the sampling distribution of the sample means with size n can be approximated to a normal distribution with mean $\mu$ and standard deviation $s = \frac{\sigma}{\sqrt{n}}$.

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 standard error is $s = \sqrt{\frac{p(1-p)}{n}}$

In this question:

$p = 0.16, n = 100$

So

$s = \sqrt{\frac{0.16*0.84}{100}} = 0.0367$

The standard error of the proportion is 0.0367.