Suppose Public Opinion Is Split 65% Against and 35% for Increasing

question 71

Short Answer

Suppose public opinion is split 65% against and 35% for increasing taxes to help balance the federal budget. 500 people from the population are selected randomly and interviewed.
Is the sampling distribution of the sample proportion of people who are in favor of increasing taxes to help balance the federal budget approximately normal?
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What is the mean?
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What is the standard deviation?
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What is the probability the proportion favoring a tax increase is more than 30%?
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Definitions:

External Costs

Costs of an economic activity that are not borne by the participants in the activity but are imposed on others, such as pollution.

Competitive Free Market

A market structure where many firms offer products or services that are similar, allowing for free entry and exit, with prices determined by supply and demand forces.

Marginal External Cost

The cost imposed on a third party not involved in a transaction or activity due to an additional unit of production.

Methane Gas

A potent greenhouse gas with a simple chemical formula CH4, commonly produced by the decomposition of organic materials and digestive processes of animals.