EXAMPLE 5.24

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Shopping online. A survey by the Consumer Reports National Research Center revealed that 84% of all respondents were very satisfied with their online shopping experience.15 It was also reported, however, that people over the age of 40 were generally more satisfied than younger respondents. You decide to take a nationwide random sample of 2500 college students and ask if they agree or disagree that “I am very satisfied with my online shopping experience.” Suppose that 60% of all college students would agree if asked this question. What is the probability that the sample proportion who agree is at least 58%?

The count X who agree has the binomial distribution B(2500, 0.6). The sample proportion does not have a binomial distribution because it is not a count. But we can translate any question about a sample proportion into a question about the count X. Because 58% of 2500 is 1450,

P( ≥ 0.58) = P(X ≥ 1450)

= P(X = 1450) + P(X = 1451) + · · · + P(X = 2500)

320

This is a rather elaborate calculation. We must add more than 1000 binomial probabilities. Software tells us that . But what do we do if we don’t have access to software?