Login  Register

distributions

classic Classic list List threaded Threaded
3 messages Options Options
Embed post
Permalink
Reply | Threaded
Open this post in threaded view
| More
Print post
Permalink

distributions

SHIKHA
thirty percent of all employees have advanced training. if in a sample of 500 employees , less than 27% are adequately prepared, all new hires are required to enroll in a training program. what is the probability the program will be initiated??,,...please tell me your answer
Reply | Threaded
Open this post in threaded view
| More
Print post
Permalink

Re: distributions

Amit Goyal
Administrator
This post was updated on Nov 22, 2012; 3:27am.
We are interested in finding:
Pr(less than 27% are adequately prepared (trained) in a sample of 500 given that you are sampling them from a large population with 30% trained)
(Note that This has a Binomial distribution with parameter p = 0.3 and n = 500)
One way to do this is to compute the above probability using Binomial distribution that is, we compute the probability that number of successes is less than or equal to 135 where the draw takes place 500 times (n = 500) and probability of success in each draw is 0.3 (p = 0.3). But doing this is computationally cumbersome.
So we use normal approximation,
Pr[z < (135 - 150)/(sqrt(500(0.3)(0.7)))] = Pr[z < -15/(sqrt(105))] = Pr[z < -15/10.25] = Pr[z < -1.465] = 1 - 0.93 = 0.07
Probability the program will be initiated is approximately 0.07 (7% chance)
Reply | Threaded
Open this post in threaded view
| More
Print post
Permalink

Re: distributions

SHIKHA
thank u sir!!!..