SCENARIO 7-8
A consulting firm that surveyed consumers' holiday shopping behavior found that the percentage of
consumers from the U.S., Canada, and China who said that they planned to spend more on holiday
shopping were 40%, 34% and 73%, respectively. Treat these results as representations of the
populations. Random samples of size 150 are selected from each of the three countries.
-Referring to Scenario 7-8, the requirements for using a normal distribution to
approximate a binomial distribution is fulfilled for the random samples of U.S. consumers.

Question

Quizplus · Accepted Answer

The requirement for using a normal distribution to approximate a binomial distribution is that both np and n(1-p) should be greater than 5. For U.S. consumers, with n=150 and p=0.40, np=60 and n(1-p)=90, both of which are greater than 5.

SCENARIO 7-8 A Consulting Firm That Surveyed Consumers' Holiday Shopping Behavior Found