A carpet expert believes that 8% of Persian carpets are counterfeits. If the expert is accurate, what is the probability that the proportion of counterfeits in a sample of 827 Persian carpets would be greater than 7%

Answer :

Answer:

[tex] z=\frac{0.07-0.08}{0.00943}= -1.06[/tex]

And we can use the normal standard distribution table and  the cmplement rule and we got:

[tex] P(z>-1.06) = 1- P(z<-1.06) = 1-0.1446= 0.8554[/tex]

Step-by-step explanation:

For this case we know the following info given:

[tex]p=0.08[/tex] represent the population proportion

[tex] n= 827[/tex] represent the sample size selected

We want to find the following proportion:

[tex]P(\hat p>0.07)[/tex]

For this case we can use the normal approximation since we have the following conditions:

i) np = 827*0.08 = 66.16>10

ii) n(1-p) = 827*(1-0.08) =760.84>10

The distribution for the sample proportion would be given by:

[tex] \hat p \sim N (p ,\sqrt{\frac{p(1-p)}{n}}) [/tex]

The mean is given by:

[tex]\mu_{\hat p}= 0.08[/tex]

And the deviation:

[tex]\sigma_{\hat p}= \sqrt{\frac{0.08*(1-0.08)}{827}}= 0.00943[/tex]

We can use the z score formula given by:

[tex] z=\frac{\hat p -\mu_{\hat p}}{\sigma_{\hat p}}[/tex]

And replacing we got:

[tex] z=\frac{0.07-0.08}{0.00943}= -1.06[/tex]

And we can use the normal standard distribution table and  the cmplement rule and we got:

[tex] P(z>-1.06) = 1- P(z<-1.06) = 1-0.1446= 0.8554[/tex]

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