A Sample of 25 Observations Is Taken to Estimate a Population

question 35

Multiple Choice

A sample of 25 observations is taken to estimate a population proportion π. The sampling distribution of sample proportion p is:

• A) not normal since n < 30.
• B) approximately normal because is always normally distributed.
• C) approximately normal if np ≥ 5 and n(1 - p) ≥ 5.
• D) approximately normal if p approaches 0.50.

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Definitions:

Bank Account

An account held at a financial institution that allows for the deposit and withdrawal of money.

Annual Withdrawals

The amount of money that an individual withdraws from an investment or savings account each year.

Interest

The charge for borrowing money or the return earned on an investment, typically expressed as a percentage.

Years

A measurement of time consisting of 12 months or 365 days, used in financial calculations to determine periods.