A courier service company wishes to estimate the proportion of people in various states that will use its services. Suppose the true proportion is \( 0: 05 \). If 220 are sampled, what is the probability that the sample proportion will differ from the population proportion by greater than 0.04 ? Round your answer to four decimal places.
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Beyond the Answer
To find the probability that the sample proportion will differ from the population proportion by greater than 0.04, we can use the normal approximation for the sampling distribution of the sample proportion. Given the true proportion \( p = 0.05 \) and the sample size \( n = 220 \), we can calculate the standard deviation of the sampling distribution (standard error) as follows: \[ \sigma = \sqrt{\frac{p(1-p)}{n}} = \sqrt{\frac{0.05(1-0.05)}{220}} \approx \sqrt{\frac{0.05 \times 0.95}{220}} \approx 0.0106 \] Next, we calculate the z-scores for the sample proportions that differ from \( p \) by more than 0.04. The lower limit for the sample proportion is \( 0.05 - 0.04 = 0.01 \) and the upper limit is \( 0.05 + 0.04 = 0.09 \). Calculating the z-scores: For \( p = 0.01 \): \[ z = \frac{0.01 - 0.05}{0.0106} \approx -3.77 \] For \( p = 0.09 \): \[ z = \frac{0.09 - 0.05}{0.0106} \approx 3.77 \] Now, we can find the probability that the sample proportion lies outside these z-scores. Using the standard normal distribution table or calculator: The probability associated with \( z < -3.77 \) is approximately \( 0.0001 \). The probability associated with \( z > 3.77 \) is also approximately \( 0.0001 \). Adding these two probabilities gives: \[ P(|\hat{p} - p| > 0.04) \approx 0.0001 + 0.0001 = 0.0002 \] Thus, rounding to four decimal places, the result is: \[ \boxed{0.0002} \]
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